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 reminds taxpayers to avoid late filing penalties by filing their personal income tax return on time, even if they owe money but can’t immediately pay. The Tax Department can help taxpayers avoid or reduce penalties and added interest on any taxes they might owe.
“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” Acting Commissioner Amanda Hiller said. “To avoid making their financial situation worse, they should instead file and reach out to us for ways to resolve their tax liabilities.”
•Different options available if you can’t pay all the taxes you owe
Taxpayers who can’t pay what they owe all at once are encouraged to follow these steps:
√ Submit their completed tax return by the Monday, April 18, 2022, deadline to avoid late filing penalties;
√ Pay what you can afford now to reduce interest; and
√ Request an installment payment agreement.
An IPA is the Tax Department’s most convenient and popular payment option for outstanding tax debt.
Individuals who can pay in full have another payment option – Quick Pay – that allows them to pay a bill or tax debt directly from their bank accounts. The online app can be accessed from home computers, a smartphone, or other mobile device.
In addition, taxpayers can use Tax Department online services accounts to make payments from their bank account or by credit card. They can also respond to notices, update their information, and handle other tax-related tasks. Visit www.tax.ny.gov to set up an account or log in to an existing account.