Failing to pay your New York state taxes for multiple years can lead to severe consequences. Understanding these repercussions and paying your taxes can help you avoid financial and legal troubles.
Accumulation of penalties and interest
One of the immediate consequences of not paying your state taxes is the accumulation of penalties and interest. New York imposes late payment penalties, which can significantly increase your total tax debt. Additionally, interest accrues on any unpaid tax amount, compounding the financial burden over time.
Tax liens
The New York State Department of Taxation and Finance can file a tax lien against your property if you fail to pay your taxes. A tax lien is a legal claim against your assets, including your home, bank accounts, and other property.
This lien can make it challenging to sell or refinance your property. Plus, tax controversies can negatively impact your credit score.
Wage garnishment
The state can also garnish your wages to recover the unpaid taxes. Wage garnishment involves deducting a portion of your salary directly from your paycheck to satisfy the tax debt. This can lead to financial hardship as it reduces your disposable income.
Bank levies
The state has the authority to levy your bank accounts, meaning they can seize funds directly from your accounts to cover the tax debt. A bank levy can leave you without access to necessary funds for everyday expenses. It can create additional financial stress.
Not paying your New York state taxes for multiple years can result in significant financial and legal consequences. To avoid these repercussions, address your tax obligations promptly.