Under the 2011 Offshore Voluntary Disclosure Initiative (OVDI) or 2012 Offshore Voluntary Disclosure Program (OVDP),…
New York Penalty and Interest Discount (PAID) program
New York has new legislation authorizing a form of tax amnesty program.
According to a New York press release, the legislation authorizes what New York calls the PAID (Penalty and Interest Discount) program.
Apparently, PAID gives taxpayers with older unpaid bills the chance to save up to 80% of the penalty and interest they owe. Bills less than three years old are not eligible under this program.The program will start January 15, 2010.
To take advantage of the program’s savings, eligible taxpayers must make all payments by the program’s expiration date, March 15, 2010.
If they don’t pay in full by that date:
• the opportunity for these savings will be lost forever
• any unpaid tax debts will continue to accrue interest at the full statutory rate.
Benefits of PAID Program include saving:
• 80% of accrued penalty and interest on unpaid bills issued on or before December 31, 2003
• 50% of accrued penalty and interest on unpaid bills issued after December 31, 2003 and on or before December 31, 2006.
In the state’s press release, they mention they are increasing their enforcement efforts to collect unpaid bills. If you act now, you may be able to avoid collection actions in the future.
In January 2010, New York will mail letters to taxpayers who qualify for the PAID discounts, inviting them to participate in the program.
As of January 15, 2010 you’ll be able to access New York’s site (below link) to participate in the program, including checking to see if you have eligible bills.
Our firm recently successfully filed several client’s state amnesty applications.
For more info see: http://www.tax.state.ny.us/nyshome/paid.htm