NY State, facing a projected $750 million dollar deficit for the year 2010-2011 budget is facing cash-flow problems just like California which is leading to tax refunds being delayed by a few weeks. In attempt to increase tax revenues, NY State has announced a few measures to increase tax revenues which include a potential new "obesity tax," as well as various measures to recover back taxes through the recently ended Tax "PAID Program" or by displaying publicly those individuals and businesses in NY who owe back taxes.
NY State Tax Refunds Delayed
With Governor Patterson facing a budget shortfall, city officials are delaying tax refunds by a few weeks or until the first of April. This will save the state about half a billion dollars and really impacts individuals who filed returns early (in March or February) as they will see refunds delayed by as much as 6 weeks. Many politicians are considering bills that require the state to process returns within 30 days or else pay interest on the refunds owed.
This is particularly ironic because if you owe taxes the State will hand you a failure to pay penalty and an interest charge for taxes unpaid. The cash flow problem may not be resolved but becasue the State's fiscal year ends March 31st, refunds will begin to paid thereafter.
Biggest Delinquent Taxpayers Listed Publicly
NY state, like many states are trying to shore up tax revenues with amnesty programs and other measures. This month the New York State's PAID tax program ended which was a program that would allow delinquent taxpayers to save as much as 80% in interest if they paid their back taxes by March 15th. This month NY state released data on the top 250 biggest individuals and businesess who owe back taxes which can be found here.
The list intends to encourage individuals to pay back taxes owed to the State or face public humiliation. Such measures or moves like this have in the past worked for many States like California.
If you owe the IRS or NY taxes it is in your best interests to pay now rather than later. If anything, States are more attentive to delinquent taxpayers because of budget shortfalls during these tough economic times. NY state, like many states, offers Installment Agreement or tax payment plans if you cannot pay in full.
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