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Your guide to New York tax collections

On Behalf of | Jul 11, 2023 | Federal And State Tax Collections |

When you get a state tax bill, you want to pay it on time to avoid any penalty fees. However, when you do not pay your tax bills on time, New York’s Department of Taxation and Finance will contact you before beginning the collection process.

Here is what you need to know about this process, as well as some other helpful information to get you through your unpaid tax bills.


State auditors can review your taxes to see if you did everything correctly. Generally, the state will select you for an audit if you did not file a tax return, failed to report the correct income, took excessive credits or committed fraud. These will not impact your life significantly and it is important to cooperate if the state selects you for an audit.


If you fall into debt, you have several options to get out of it. You can pay what you owe, set up a payment plan, disagree with your bill or apply for a compromise.


After the state has issued your bill and you do not pay it promptly, the Civil Enforcement Division will collect your debts. When you cannot pay your taxes, the department will initiate one of the following actions:

  • Tax warrant
  • Levy
  • Income execution
  • Seizures
  • NY driver’s license suspension

Some alternatives could be that the state offsets your debts or goes through private debt collection.

If you have a tax warrant out, you need to take action. That will resolve your debt so you can go back to a normal life.