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Question
In 2002 I paid NY State taxes I owed. I wrote in the memo field of the check something about if cashed this reflected full compensation for monies due (I was aprox 2 months late in paying taxes due). NYS then issued a 500 dollar penalty and placed a lien. I found out about the lien which only shows up on 1 of the 3 credit reports after I was inquiring about qualifing for a home loan. 3 questions. First, any way out of paying the lien in? Second, Will the 500 dollar penalty balloon? Third, Does a lien fall off of your record after 7 yrs like other "bad" debt
Submitted: 45 days and 19 hours ago.
Category: Tax
Value: $18
Status: CLOSED
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State/Country relating to question: New York
Already Tried:
this is my first inquiry
Accepted Answer
Hello XXXXXXXXXX, In answer to your questions,a filed tax warrant (or lien) secures the state as a lienholder of your personal and real property and empowers the department to use certain collection procedures.Interest is always due on the underpayment or late payment of tax and is computed at the applicable rate determined pursuant to the New York State Tax Law. It is compounded daily from the due date of the return to the date the tax is paid. In New York State, a released (paid) tax lien remains on a credit report for seven years from the date paid. The penalty will not balloon, but interest will apply and accrue untill the debt is paid. I sincerely hope this information is helpful to you,
Expert:
Robin D
Pos. Feedback:
100.0 %
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Answered:
10/8/2009
Senior Tax Advisor 4
15years with H & R Block. Divisional leader, Instructor
45 days and 7 hours ago.
Reply
So, you are telling me that my penalty fee for paying taxes late is accruing interest? I declared bancrupcy that year, does that help me at all with this? The lien did not show up on my credit report at the time. I have been living in Fl since 2002. Any idea what the final bill would be for the 500 dollar penalty fee these many yrs later?
Posted by
Robin D
45 days and 7 hours ago.
Answer
Hello again, The penalty charge for late payment of tax is: •0.5% of the unpaid amount for each month (or part of a month) it is not paid, up to a maximum of 25% This is what generated your debt with NY. •Interest is compounded daily and the rate is adjusted quarterly. Please send a copy of your Bankruptcy Petition, or the State, District and Bankruptcy Docket number, including your taxpayer ID number (social security number) and a daytime telephone number where you can be contacted to: New York State Department of Taxation and Finance Bankruptcy Unit PO Box 5300 Albany, NY 12205 or gather this required information and call the Bankruptcy Unit at (XXX) XXX-XXXX between 8:30am and 430 pm.
45 days and 7 hours ago.
Reply
I am unclear. Will the fact that Bankrupcy was declared release me from this debt? If not what does.5 pct of the penalty fee amount to after 7 yrs?
Posted by
Robin D
45 days and 7 hours ago.
Answer
That persentage point is what was addressed to your Tax Balance Due that you already paid and is what was applied after, which made you have an outstanding amount with the state of NY. The ensueing interest is compounded daily and the rate is adjusted, so I really can not advise on exact amount that will be owed when you finally pay the state. Not all tax liabilities are discharged by a bankruptcy. You should review your remaining liabilities with your bankruptcy attorney . If you have further questions about Bankrupcy and the NY Taxes,you should call the Division of Collections & Civil Enforcement bankruptcy section at XXX-XXX-XXXX.
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