Similar to the IRS, when a taxpayer owes money to New York State, there are several options for a taxpayer to address the outstanding balance.
In many instances, the best procedure is to try to pay it all at once, but this may not always be feasible.
An Installment Payment Agreement permits payment over time. Interest and penalties continue to accrue and it is often in the best interest of the taxpayer to consider loans from other sources before pursuing an Installment Payment Agreement. An IPA is useful for taxpayers who have adequate income, but who do not have sufficient equity to support a loan.
IPA payments are usually made by direct debit. New York State will almost always file tax warrants in conjunction with an Installment Payment Agreement. However, levy action, such as an ongoing income execution, will be suspended when an IPA is put in place.
The amount and length of an Installment Payment Agreement may depend on various factors, such as the taxpayer’s income and expenses, as well as the total amount due. Do not hesitate to contact us to discuss the feasibility of an Installment Payment Agreement.