New York state Tax Department established the “Penalty and Interest Discount” (PAID) program giving taxpayers with old, delinquent tax bills an opportunity to save up to 80% of the penalties and interest owed.

Under PAID, taxpayers can save up to 80% of the accrued penalties and interest on delinquent tax bills issued on or before December 31, 2003, and up to 50% of the accrued penalties and interest on delinquent tax bills issued after December 31, 2003, and on or before December 31, 2006.

The full amount of the delinquent tax bill, plus the appropriate amount of penalties and interest, must be settled by March 15, 2010, in order to obtain the discount.

Taxpayers who do not settle their outstanding tax debts by March 15, 2010, will permanently lose the opportunity to receive these savings and the unpaid tax debt will continue to accrue penalties and interest at the statutory rate.

The New York state Tax Department mailed notices in January 2010 to taxpayers eligible for the PAID program. If an eligible taxpayer did not receive a notice, they should contact the Tax Department, as soon as possible, by phone or through their website (www.tax.state.ny.us).

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