Can't Pay New York Back Taxes? Can't File on Time? What You Can Do?

Each state in the union has different tax codes and rules and if you owe New York back taxes you need to understand your options are available if you cannot pay or you cannot file in time. New York, unlike the IRS, doesn't provide as many options but they are present.

What If You Can't File In Time?

First, let's talk about filing. If you are stuck with realizing that you cannot file in time you can request a 3 month extension with form CT-5.9 or use Form IT-370 for an automatic six month extension. Realize, that this is not an extension to pay the estimated tax but to file. You will still need to send payment by the original due date of the return. You can get a longer extension if you live outside the US (including Puerto Rico). If you were recently separated, then you and your ex-spouse must file.

What If You Can't Pay In Time?

Second, if you cannot in time or the full amount, then you can request an Installment Agreement from the State of NY so it be it that you have a good past record of paying NY State taxes, you are not currently in an installment agreement, and your financial condition is giving you "hardship." An Installment agreement will let you pay back the State over a series of monthly payments but it does carry Interest and Penalties. You will need to do a financial statement in order to prove hardship to the State. When ready, have your tax bill with you, taxpayer ID, and four digit pin (on your bill) and call 518-457-5434. Do not ignore the State and not pay because then tax liens and other enforcements could come. Be ready to pay by ACH (direct debit), or credit card.

Don't ignore the state and not file or pay at all as then Tax Warrants will be issued, which will result in a tax lien being filed against you meaning you will have trouble borrowing and selling any assets and destroy your credit.

If you are having difficulty filing or paying the State of NY, or you feel you want to try to settle with the State of the NY it is not the end of the world and if you use a tax professional to state your case for you. Chances are you will come out of it with more money than you thought. Where people mess up is when they panic and just fork over the amount the state tells them to. That is foolish. They can make mistakes too and it is your right to take them to task. Have a professional team of Attorneys, CPAs, and former IRS agents fight for you.

New York back taxes
Many people owe back taxes to New York and forget to file or can't pay taxes during this economic downturn. This can happen due to an error on your part or an error on the State's part. In either case, there are professionals us who can help you with so you can get it resolved quickly.