Senator Lavalle Reports on Tax Amnesty Program

Kenneth P. LaValle

January 13, 2010

Senator Kenneth P. LaValle would like to make the public aware of a brief opportunity for New York State taxpayers to clear up delinquent tax bills, while substantially reducing penalties and interest that have accrued over time.   

According to Senator LaValle, recent legislation gives the New York State Department of Taxation and Finance the authority to offer the Penalty and Interest Discount (PAID) program. PAID encourages eligible taxpayers to pay off tax liabilities by offering a savings on interest and penalties.  The program period begins January 15, 2010 and expires on March 15, 2010.  A taxpayer is eligible to take advantage of the program if their final determination was issued on or before December 31, 2006 and must make full payment of any tax liability by March 15, 2010. 

PAID reduces the penalty and interest accrued on unpaid tax bills by as much as 80% for bills issued on or before December 31, 2003 and by 50% for unpaid bills issued after December 31, 2003 and on or before December 31, 2006.  PAID does not apply to tax bills that are less than three years old, unassessed liabilities, or bills that may result from matters currently under audit. 

The Tax Department will make every attempt to identify eligible taxpayers and mail written notices inviting them to participate in PAID.   However, due to the age of the tax debts, the Department may not have the current address information.  If you think you may be eligible for this debt forgiveness program and did not receive a letter you should visit the New York State Department of Taxation and Finance at for more information on PAID. Taxpayers without web access may call (518) 457-1726 or toll-free 1-888-272-9697 for instructions on how to participate.

        “This is a one-time offer that allows taxpayers to clear up delinquent taxes and save a substantial amount of money in doing so,” said Senator LaValle.  “I hope that those who are eligible to participate in PAID will recognize its benefits and take advantage of the opportunity to satisfy a debt that could hurt their personal credit rating and lead to enforcement actions.”