File your tax return on time - even if you can't pay what you owe

Options to avoid penalties when you can’t pay your tax debt in full

Submitted by the New York State Department of Taxation and Finance

The New York State Department of Taxation and Finance today reminded taxpayers not to delay filing their personal income tax return if they owe money but can’t immediately pay. The Tax Department can help taxpayers avoid or reduce penalties and added interest.

“Some New Yorkers mistakenly think it’s better to simply not file their tax return if they can’t afford to pay what they owe,” said New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller. “To avoid making their financial situation worse, they should file on time and consider payment options available through the Tax Department.”

Payment options

Taxpayers who can’t pay what they owe by the due date are encouraged to follow these steps:

√ Submit a completed tax return by the Monday, April 15, 2024, deadline to avoid penalties;

√ Pay what you can afford by the deadline to reduce penalty and interest; and

√ Request an installment payment agreement (IPA)

An IPA enables qualifying taxpayers to make monthly payments toward an unpaid tax balance. The fastest and easiest way to request an IPA is through an online services account with the New York State Tax Department.

In addition, taxpayers can use Tax Department online services accounts to make payments from their bank account for free or by credit card for a fee. Using an online services account, taxpayers can also respond to notices, update their information, and handle other tax-related tasks. Visit www.tax.ny.gov, (search: online services) to set up an account or log in to an existing account.

Other payment options are available on the Tax Department website if you want to make an income tax return payment when you file your tax return.