Get information regarding your IPA
The best way to get information and communicate with the Tax Department about your Installment Payment Agreement (IPA) is to:
- open an Online Services account (if you don’t already have one),
- review your account regularly, and
- request electronic communications for both Bills and Related Notices and Other Notifications.
When you established your IPA, you agreed to meet certain terms and conditions to ensure your IPA remains open and in good standing. We include our terms and conditions with every IPA agreement we issue, and often share them over the phone.
You have stated you are unable to pay your New York State taxes in full based on your current financial condition, and you have requested an installment payment agreement (IPA). You must comply with the following conditions:
- File all returns by the due date.
- Pay all tax liabilities by the due date.
- Make IPA payments on time. We may apply your state and federal refunds to your outstanding liabilities; however, you must still make your scheduled monthly payments.
- Provide an update of your financial condition, if requested.
If you fail to meet any of the above conditions, we may terminate or modify your IPA after 30 days prior notice, explaining the reasons. If the Commissioner believes at any time that collection of this liability is in jeopardy, we may terminate your IPA without notice.
If we terminate your IPA, we may resume collection action against you, including:
- file a tax warrant
- garnish your wages or other income
- levy and seize your assets
- recommend suspension of your driver's license (total balance due must be over $10,000; certain exclusions may apply)
- issue bills and take collection actions against responsible individuals of a business entity
- take other appropriate enforcement actions
Make IPA payments
We will notify you when your first monthly payment is due. You will receive either:
- an Installment Payment Agreement Billing Notice telling you to make your monthly payment online or by mail; or
- a Confirmation of automatic payment deductions for your Installment Payment Agreement, confirming we will automatically withdraw your payment from your bank account and specifying the date of your first scheduled monthly withdrawal.
If you are mailing your payment, include the full IPA ID number on your check or money order. We will credit your payment as of the postmark date.
If you receive confirmation that we will begin automatic withdrawal payments from your bank account, you do not need to make a payment online or by mail; simply monitor your bank account to ensure the withdrawal is successful. Please note, it may take several days to view the withdrawal transaction in your bank account.
If your IPA payments are set up to be automatically withdrawn from your bank account, you may need to make your payments online or by mail until we can process your request for automatic withdrawal. When we have processed your request, we will send you a Confirmation of automatic payment deductions for your Installment Payment Agreement, confirming we will automatically withdraw your payment from your bank account and specifying the date of your first scheduled monthly withdrawal.
Until then, if you have a payment due, we will send you an Installment Payment Agreement Billing Notice telling you to make your monthly payment online or by mail. If you are mailing your payment, include your full IPA ID number on your check or money order. We will credit your payment as of the postmark date.
If your scheduled payment due date falls on a Saturday, Sunday or legal holiday, we’ll attempt to withdraw your payment the following business day.
If there are insufficient funds available for your scheduled monthly payment, we will automatically make a second attempt to withdraw your payment from your bank account within 2 business days.
If you need to change the bank account information or withdrawal date for your IPA, see Make changes to your IPA.
We do not charge late fees, but we may send you a notice if:
- you pay after your due date
- you do not make your scheduled monthly payment
- your bank does not honor your payment
To avoid defaulting your IPA, you must make your missed payment by your next payment due date in addition to your regular monthly payment. Monitor your bank account to confirm your payments process successfully.
If you are mailing your payment, we will credit your payment as of the postmark date.
If you default your IPA, we may proceed with collection action.
If you are able, we encourage you to make payments in addition to your scheduled monthly payments. You can:
- shorten the term of your agreement,
- decrease the amount of penalty and interest you owe, and
- possibly lower the amount of your final payment.
Additional payments will be applied to the total balance of your IPA and do not count towards next month's payment.
Review your account regularly
If you have an outstanding balance, we may be required to send you a letter about it, even if you have an active IPA. If you receive a bill, first verify whether the assessment is already included in your IPA. To view the details of your agreement, you can either:
- log into your Online Services account and select Installment Payment Agreement, or
- match the assessment number on your bill (begins with an L) to the itemized list of liabilities in your original IPA documents.
If the assessment is already included in your IPA, no further action is required; continue making your scheduled monthly IPA payments. If the assessment is not included in your IPA, see New bills below.
It is important to review your account regularly. If you receive a new bill, it does not automatically roll into your existing IPA, and you cannot add it to your existing IPA.
You must either:
- pay the new bill in full and continue with your existing IPA, or
- pay the remaining balance on your existing IPA and request a new IPA for the new bill.
If you are unable to pay the new bill in full or satisfy your existing IPA, we may be able to negotiate a new IPA to include it. However, we may:
- require the filing of a tax warrant, and
- increase your monthly payment amount.
If you need to negotiate a new IPA, call us at 518-457-5772 during regular business hours to speak with a representative.
We may offset any state or federal refunds due to you while you are on your IPA. If we offset a refund, we will send you a notice.
Refund offsets are not a substitute for scheduled monthly payments, which remain due each month until your IPA balance is paid in full.
Applying your refund to your unpaid balance may:
- lower your balance due,
- shorten the term of your IPA,
- lower the amount of your final payment, or
- pay your balance in full.
If a refund offset or scheduled monthly IPA payment creates an overpayment, we will automatically refund you the overpayment amount (within approximately 60 days), provided you have no other outstanding debt we can apply this money to. We will notify you, in writing, if we apply an overpayment to other outstanding debt.
For the duration of your IPA, you accrue penalty and interest on the unpaid balance. We calculate the total amount of penalty and interest due based on current rates and include the amount in your repayment schedule.
We encourage you to make payments toward your unpaid balance in addition to your scheduled monthly payments, as this will lower the total amount of penalty and interest you owe.