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Penalty and Interest Discount (PAID) Program

What is PAID

The New York State Penalty and Interest Discount (PAID) program gives eligible sales tax vendors an opportunity to reduce certain unpaid sales tax liabilities. Qualifying businesses may receive a 50% reduction in interest and 100% relief from penalties when they pay the required reduced amount on all PAID-eligible bills by December 31, 2026.

Benefits of the PAID Program

If your business qualifies for the PAID program, it may help you:
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Reduce Tax Debt

significantly reduce the additional costs associated with unpaid sales tax,

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Address Collection Issues

Resolving eligible sales tax liabilities may help businesses address collection-related issues associated with qualifying bills.

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Prepare for Re-Registration

PAID can provide eligible businesses an opportunity to resolve qualifying liabilities before New York's upcoming sales tax re-registration program.

Who is eligible

Your business may qualify for PAID if it has an active Certificate of Authority and unpaid sales tax bills that are subject to collection action and no longer have formal appeal rights. Bills associated with fraud are excluded from the program.

Eligible taxpayers do not need to submit a separate application to enroll. The New York State Department of Taxation and Finance identifies taxpayers with qualifying bills and sends them a notice.

PAID eligibility is based on bills that qualify as of September 1, 2026. Balances, rather than bills, due with sales tax returns for periods ending August 31, 2026, and November 30, 2026 are not eligible for PAID.

How it works

If your business is eligible:

  1. You will receive a notice identifying the sales tax bills that qualify for PAID. The notice will show the applicable savings and the reduced amount required to receive the program benefits.
  2. You must pay the required amount for all PAID-eligible bills by December 31, 2026.

You may make smaller payments toward your total PAID balance if you prefer. You do not need a separate payment plan for these payments, but the full amount for all PAID-eligible bills must be paid by the deadline.

If you do not take advantage of the program, you remain responsible for the full undiscounted sales tax balance. Formerly eligible bills may become subject to collection action beginning January 1, 2027, and applicable penalty and interest may continue at the statutory rate.

ITIN FAQs

An ITIN (Individual Taxpayer Identification Number) is issued by the IRS to individuals who are not eligible for a Social Security Number but need to file personal or business taxes.
An ITIN is for individuals who have a U.S. tax filing requirement but are not eligible to obtain a Social Security Number (SSN).
 

The IRS usually processes ITIN applications within 7 to 11 weeks.

Yes, you can renew your expired ITIN.
 
You will typically need a federal tax return (if required) and valid identity and foreign status documents, such as a passport.
 
Yes, but an expired ITIN may delay the processing of your tax return and any refund until it is renewed with the IRS.
 
As an IRS-authorized Certified Acceptance Agent (CAA), and in most cases, eliminate the need to mail your original passport to the IRS.
 
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