New York residents are likely knowledgeable of the various tax benefits offered by the state. These programs are designed to help certain residents, and if they prove eligibility, these individuals can enjoy the benefits of these programs. This may address assistance for those with children, purchasing a home or obtaining food. However, if a person cheats the system and get approved of these programs when he or she is not actually eligible, this could result in tax penalties.
Take for example the STAR program. In New York, this program provides $3 billion a year to provide a break on homeowners when it comes to school taxes. This program benefits more than 2.6 million residents. However, according to recent reports, the Governor seeks to cut out fraud in this program.
Thus, a proposal has been made, and if approved, would go into effect in the state budget plan that will initiate April 1, the start of the fiscal year. This proposal would result in the imposition of a six-year moratorium for those providing false information to obtain these lucrative tax breaks.
The STAR program is available to homeowners for their primary residence who have an adjusted gross income of $500,000 or less; however, it was discovered that some residents are getting a break on a second home. And because this program provides a substantial benefit for those it is designed to help, these changes seek to help hold those seeking to profit on this program accountable.
Therefore, those facing penalties for tax fraud or any other type of tax controversy should understand the situation and their rights in the matter. This may look like providing additional documentation, proving eligibility. Additionally, taking action could help reduce the penalties faced by these allegations.