According to USA Today, the State has collected $4 million in back taxes since the program was launched in August. No word yet on how many licenses have been suspended, if any.
The USA Today piece also mentions another program from the NYS Department of Taxation and Finance:
New York is not offering any formal amnesty, but the state tax department website does dangle a carrot: If the delinquents pay up under the “voluntary disclosure and compliance program,” they can work out a payment plan for the taxes and interest owed. They also can avoid penalties and possible criminal charges by pledging to pay their taxes on time in the future.
It’s true that voluntary disclosure may enable taxpayers to avoid criminal charges and penalties under certain circumstances. But this statement is very misleading in the context of the article.
To be eligible for the Voluntary Disclosure and Compliance Program, as stated on the State’s website, an applicant must meet all of the following criteria:
- They must not currently be under audit by the Tax Department for the tax type and tax year(s) that they are disclosing.
- They must not have received a bill for the past due taxes that they are disclosing.
- They must not be under criminal investigation by a New York State agency or political subdivision of the state.
- They must not be seeking to disclose participation in a tax avoidance transaction (commonly known as a tax shelter) that is a federal or New York State reportable or listed transaction.
- If a taxpayer already has a balance due for a tax period, then the taxpayer cannot utilize voluntary disclosure for that liability.
So, for “tax delinquents” facing possible suspension of their drivers’ licenses, they cannot “pay up” these liabilities pursuant to the Voluntary Disclosure and Compliance Program. It’s too late for that.
Submitted by Brad Polizzano on