New York customs

[Ian Lawther]

Based on this
https://help.cbp.gov/app/answers/detail ... UzRncG4%3D
you may have been caught in an audit. If so, and there was a delay since you received the pipes, you have likely been accumulating interest on a debt you were unaware you had.

[Piobairi Uilleann Inis Fa]

2014

[PJ]

Ouch.

[kkrell]

2014

Ouch, also.

Here's how Individual (vs. business) sales & use tax works (when all goes well):
https://www.tax.ny.gov/pubs_and_bulls/t ... iduals.htm
OR
https://www.tax.ny.gov/pdf/tg_bulletins ... 7_913s.pdf

I've looked up some of the New York bulletins on penalties. Severe, like doubling the use tax that was originally due (looks like it is a 100% penalty for failure to file a Use tax return, more than 60 days late), plus per year interest penalties.

According to this page ( https://www.tax.ny.gov/pay/all/int_curr.htm ), the current rate is 14.5% annually, compounded daily.

*The Tax Law requires the interest rate on sales tax assessments or late payments to be set at 14-1/2% for this quarter. However, if the Commissioner determines that the failure to pay or the delay in payment is due to reasonable cause and not willful neglect, the Commissioner may impose interest at the corporation tax late payment and assessment rate. That rate is 8% for this quarter.

First, I'd look into this:

We may reduce or eliminate some penalties if reasonable cause is shown

If you can show that your failure to comply with the sales and use tax laws was due to reasonable cause, and not due to willful neglect, we may reduce or eliminate the appropriate civil penalties noted in this bulletin. See Section 2392.1 of the Regulations (Title 20 NYCRR).

Here's a good explanation of what can come under reasonable cause for a request for an abatement of penalties & interest. Looks possible to me.
https://nytaxattorney.com/2012/08/15/le ... penalties/

Also, the Collection Process ( https://www.tax.ny.gov/pdf/publications ... pub125.pdf ) can get pretty stiff. There can even be criminal penalties.

Probably best to talk to a tax attorney, or at least your personal accountant if you have one. Some representation will give you a better chance at potentially knocking the tax amount down to something "reasonable". A goal would be to eliminate the late filing penalty (100% of the Use Tax), and perhaps get to an interest penalty that only begins from the time of your being officially notified that a tax was due. Original NY Use Tax, assuming state & local assessments, was probably in the 8-9% range.

Here's one example of attempts at negotiation, but I certainly don't know if you qualify in any similar way to be able to make an offer:
"Nuts And Bolts Of A New York State Offer In Compromise"
http://litaxattorney.com/nuts-and-bolts ... ompromise/


Best of luck.