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Sales tax, interest and penalties

Ithaca, NY |

I pleaded quilty with out being Indicted to tax evasion, repayment has been set up through the probation dept. I'm receiving notices for penalties and interest totaling 5X what I owe. What steps do I need to take to minimize and solve this problem? (int. & pen. total 400K+)

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Best Answer

Believe it or not, this is not uncommon and there could be two causes. One is that when you settled with the state and your payments were recorded, your payments were calculated as normal payments - not special payments through the court system. This would likely trigger a worldwind of late notices with penalties and interest. Have your attorney reach out to the state attorney and revenue agent that handled the settlement agreement. If this is the cause, then these two people are the best ones to fix the problem for you in the state's system.

Alternatively, because you settled the criminal side of tax evasion does not necessarily mean that the civil side of the matter was settled. Occasionally, the civil audit division can come back in for penalties, etc. This is something your attorney can get to the bottom of as well.

If you respond directly to the collections department of the state, they will likely have little understanding or sympathy for your plight. Let your attorney straighten this one out.

I hope this helps!


Step one is sit down with your criminal defense lawyer and review the plea. Next speak with your CPA to go over the penalties and interest portion of the case. Good luck.

If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate it. Thanks. For further information you should see an attorney and discuss the matter completely. If you are in the New York City area, then you can reach me during normal business hours at 718 329 9500 or


First you need to contact the NYS Dept. of Taxation and Finance and contact them with your SS#/Tax ID # and Sales Tax Assessment ID #s and walk through each one of them. If you did in fact settle you would have been given a copy of the court or AJJ or judge's order, disposing of, or discounting your respective liabilities on each Assessment ID #. A lot of times the paperwork follows when an agreement has been reached settling the matter, in my personal experience dealing with the IRS NYSDAF. The first step is getting a copy of the order or decree etc. which disposes of or discounts your assessment IDs, it sounds like they should align perfectly, all else being equal.

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