Can You Make Payments on New York State Taxes?
Yes, New York State’s Department of Tax and Finance (DTF) provides an avenue for payment plans. It’s important to act quickly to avoid penalties and garnishments that could be put in place against you for late payment or nonpayment. Simply trying to “wait out” your back taxes isn’t a good strategy if you owe taxes in New York. The state has a 20-year statute of limitations on tax collections. In addition, New York implements tax warrants that essentially act as liens against any real estate or personal property owned by a delinquent taxpayer. The NYS Department of Taxation has full legal authority to go after your bank accounts, seize your property, and pursue your wages. Fortunately, the process of applying for a tax payment plan in New York is pretty straightforward when you approach it with help from a tax professional. Here’s a look at the basics of applying for the NYS tax payment plan.
Can You Pay New York State Taxes in Installments?
Some taxpayers in New York may qualify for an Installment Payment Agreement (IPA) offered by the state’s DTF. It should be said that New York is one of the more difficult states for managing a tax payment plan. The state isn’t fully forthcoming regarding approval criteria or payment terms until you’ve entered into the system as an applicant. What’s more, a tax payment plan NYS taxpayers can use does not suspend or wipe away interest and penalties stemming from an unpaid tax bill.
What Are the Conditions of the New York Tax Payment Plan?
A state of New York tax payment plan is available to any taxpayer owing $20,000 or less. A plan can include up to 36 monthly payments. Once accepted, your account will still accrue all penalties and interest on your unpaid balance for the full life of your IPA. However, you are generally safe from collections efforts as long as you are locked into a payment agreement with the DIF. The New York DIF reserves the right to take collection action against you if you fail to satisfy your full tax balance. Action can also be taken against you if you fail to comply with any of the terms you agreed to when entering your IPA. The New York DIF requires you to file all future returns by their due dates in order to keep your payment plan active. The DIF also reserves the right to request an update of your financial condition.
Who’s Eligible for a New York State Tax Payment Plan?
Generally, any taxpayer who owes $20,000 or less in state taxes will qualify for a New York state income tax payment plan. The state does grant IPAs for balances greater than $20,000. However, the process for approval isn’t as streamlined. You cannot apply online if you owe more than $20,000.
What Is the Process for Arranging a Tax Payment Plan in New York?
The New York DIF looks at your tax payment history, your return filing history, your current financial condition, and your compliance with requirements when determining eligibility. You cannot apply for an IPA in New York until you’ve received a tax bill from the state. Both individual taxpayers and businesses can obtain IPAs in New York. However, the DIF handles this on a case-by-case basis. Generally, eligibility and terms for businesses are determined by the amount and type of taxes involved. You may be asked to provide a down payment when applying for a tax payment plan as a business in New York.
How Can Tax Group Center Help?
Getting a tax issue taken care of in New York is something that must be handled somewhat gingerly. One of the reasons for this is that the NYS Back Tax Driver’s License Suspension Law is a fairly aggressive law that can mean the suspension of your license if you owe unpaid taxes in New York. Make sure you’re approaching unpaid taxes in New York effectively by bringing in a tax professional to help you apply for a payment plan. We may also be able to help you explore hardship options if you’re unable to make monthly payments. The team at Tax Group Center has familiarity with tax laws and payment plans in New York. We help people find solutions for state tax debt relief every day. GiveTax Group Center a call today to book a consultation.