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File Your Tax Return Even if You Can’t Pay What You Owe Now
The Tax Department offers an installment payment program and other payment options

New York State Taxpayer Rights Advocate Margaret Neri today reminded taxpayers not to delay filing their personal income tax return if they owe money but can’t immediately pay. The Tax Department can help taxpayers avoid or reduce penalties and added interest.

“We want to make it as easy as possible for taxpayers to pay what they owe,” said Taxpayer Rights Advocate Margaret Neri. “We understand that not everyone can pay what they owe right away. That’s why the Tax Department offers opportunities to set up a payment plan or make a one-time payment online after filing.”

Steps to delay payment

Taxpayers who can’t pay what they owe all at once are encouraged to follow these steps:

submit your completed tax return by the April 15 deadline to avoid penalties;
pay what you can afford now to reduce interest; and
request an Installment Payment Agreement (IPA).

An IPA is the Tax Department’s most convenient and popular payment option for outstanding tax debt. In the last five years, 381,000 taxpayers have taken advantage of this program to pay back $1.4 billion.

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. Since the Quick Pay app went live in 2018, nearly 134,000 taxpayers have made one-time payments totaling $105 million.

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.

New York State Taxpayer Rights Advocate

As a New York State taxpayer, you have rights protecting you from any unfairness in the administration and collection of taxes, as well as a variety of options to resolve tax issues.

The Office of the Taxpayer Rights Advocate (OTRA) will help you understand your rights, and find the best way for you to resolve your tax debt or problem.

OTRA, an independent office within the Tax Department, provides:

free assistance to resolve difficult or ongoing tax problems;
options to consider if a tax issue is causing undue economic harm; and
recommendations for administrative or legislative reforms.

Department of Taxation and Finance Welcome to the official website of the NYS Department of Taxation and Finance. Visit us to learn about your tax responsibilities, check your refund status, and use our online services—anywhere, any time!

IRS ISSUES REMINDERS REGARDING TELEPHONE AND IN-PERSON IRS ASSISTANCE

IR 2018-28; IR 2018-29

In two News Releases, IRS has reminded taxpayers of procedures that they must comply with in order to obtain telephone or in-person IRS assistance.
Identity validation when taxpayers call IRS. In IR 2018-28, IRS reminded taxpayers and tax professionals that they will be asked to verify their identities if they call IRS.
To ensure that they do not have to call back, taxpayers should have the following documents ready:

Social Security numbers and birth dates for those who were named on the tax return in question;
An Individual Taxpayer Identification Number (ITIN) letter if the taxpayer has one in lieu of a Social Security number (SSN);
Filing status – single, head of household, married filing joint or married filing separate;
The prior-year tax return. Telephone assistors may need to verify taxpayer identity with information from the return before answering certain questions;
Any IRS letters or notices received by the taxpayer.
IRS assistors will only speak with the taxpayer or to their legally designated representative. If taxpayers or tax professionals are calling about a third party's account, they should be prepared to verify their identities and provide information about the third party they are representing. Before calling about a third-party, callers should have the following information available:

Verbal or written authorization from the third-party to discuss the account;
The ability to verify the taxpayer's name, SSN/ITIN, tax period, and tax form(s) filed;
Preparer Tax Identification Number (PTIN) or PIN if a third-party designee;
A current, completed and signed Form 8821, Tax Information Authorization or a completed and signed Form 2848, Power of Attorney and Declaration of Representative.
For questions regarding a deceased taxpayer, the caller should be prepared to fax:

The deceased taxpayer's death certificate; and
Either copies of Letters Testamentary approved by the court, or IRS Form 56, Notice Concerning Fiduciary Relationship (for estate executors).
In-person assistance procedures. In IR 2018-29, IRS also reminded taxpayers that IRS offices provide in-person assistance but only by appointment.
Taxpayers who are unable to resolve their issue using online tools or the toll-free helpline and want to visit a Taxpayer Assistance Center (TAC) should schedule an appointment by calling the appointment line at 844-545-5640. The Contact Your Local Office tool on IRS.gov helps taxpayers find the closest IRS TAC, the days and hours of operation and a list of services provided. Services are limited and vary at each TAC. Taxpayers requesting services at TACs will be asked to provide valid photo identification and a SSN or ITIN.
References: For IRS telephone assistance, see FTC 2d/FIN ¶ T-10164.3.

www.irs.gov

IRS CAUTIONS U.S. TAXPAYERS ON PREPAYING PROPERTY TAXES

By Eric Beech and Matthew Lewis
WASHINGTON (Reuters) - The U.S. Internal Revenue Service on Wednesday advised homeowners who are rushing to prepay their 2018 property taxes before a law signed by President Donald Trump takes effect next year that the payment may not be tax-deductible.
The law signed by Trump last week imposes a $10,000 combined limit on the deduction of state and local income and property taxes. There is no limit on that deduction for 2017.
In a notice on its website, the IRS said that, in general, a full deduction for the prepayment of state or local property taxes depends on whether the taxpayer makes the payment this year and whether the property taxes are assessed prior to 2018.
"A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017", the IRS notice said.
"State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed", it said.
The massive $1.5 trillion tax overhaul passed the Republican-controlled Congress with no Democratic support. It slashes the corporate rate to 21 percent from 35 percent and temporarily reduces the tax burden for most individuals as well.
Capping the deduction for state and local income and property taxes is seen as punitive to high-tax states such as New York, New Jersey and California.
On Friday, New York Governor Andrew Cuomo issued an order allowing state residents to make either a partial or full pre-payment on their property tax bill prior to Jan. 1 in order to benefit from the federal tax deduction.
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