In an effort to ease the burden of compliance and to incentivize taxpayers to resolve outstanding liabilities, New York has rolled out a new amnesty program for sales and use tax. The Penalty and Interest Discount (PAID) program gives taxpayers the opportunity to save 50% of the interest and 100% of penalties owed on eligible bills provided the reduced total is paid in full by December 31, 2026.
Taxpayers do not need to take any action to determine whether they qualify. Beginning in mid-September, the New York Department of Taxation and Finance (Department) will reach out to taxpayers regarding bills that may be eligible for the program. Eligible bills are those that were outstanding as of September 1, 2026, but for which formal appeal rights have expired. For bills the Department determines are eligible, taxpayers will receive a listing of the applicable bills and the PAID-eligible amount for each.
To take advantage of the program, taxpayers must electronically pay the full PAID-eligible balance for all eligible bills by December 31, 2026. Payments can be made through an Online Services account or through New York’s Quick Pay option using the applicable assessment ID number, without requiring an account. Smaller payments may be made throughout the program period, provided the total amount due for all PAID-eligible bills is paid by the December 31 deadline and a payment plan is not required.
Taxpayers who do not wish to participate, or whose bills are not eligible, will remain responsible for the full, undiscounted amount. Additionally, interest will continue to accrue on unpaid balances, and those balances may be subject to further collection action.
The benefits of this amnesty program could be considerable for eligible taxpayers. The elimination of all penalties and reduction of 50% of accrued interest could provide meaningful savings, and taxpayers who are able to take advantage of the program should consider doing so before the December 31, 2026 deadline. (Penalty and Interest Discount (PAID) program, New York State Department of Taxation and Finance, https://www.tax.ny.gov/enforcement/paid.htm, last updated September 10, 2026)