Got a penalty for a $0.00 unpaid bill … anyone dealt with this?

General
1

I inherited a trust portfolio that I rarely touch, but it generates various tax forms each year. Most are for tiny amounts. I send all the forms to my tax person to handle.

Last year, I got a letter from the New York State Tax Department saying I owed a penalty of $108.55 for an unpaid bill of “$0.00.” I don’t live in New York, so this was confusing. My tax person tried to appeal it but couldn’t get in touch with anyone. The penalty has now grown to $130.93 due to interest.

Has anyone else had this happen with New York State? Any advice before I try appealing again?

2

Better pay that $0.00 bill fast to avoid more penalties. /s

3

Kim said:
Better pay that $0.00 bill fast to avoid more penalties. /s

Exactly, why didn’t you pay it right away?

4

Have you or your tax person tried calling the New York tax department to figure this out?

5

Kade said:
Have you or your tax person tried calling the New York tax department to figure this out?

Tried calling, but all I got was a message about long wait times and they might not even answer.

6

@Flynt
Try calling as soon as their office opens.

7

Vine said:
@Flynt
Try calling as soon as their office opens.

Yep, call right when they open. Put the phone on speaker and go about your day until someone picks up. Just not on Thanksgiving since they’ll be closed.

8

@Zeke
Friday after Thanksgiving is actually a great day to call. Most people are busy with holiday stuff, but government offices like tax departments are still open.

9

If you create an account on New York’s tax website and link it with your Social Security number, you can check your 2022 return. That might give you more information. If your return was paper filed, though, it won’t show online.

You can also respond to the notice online. Enter the notice number and request clarification, saying you don’t understand the assessment. It might take a few weeks, but someone should get back to you.

10

@TIFF
Thanks, I didn’t know I could do that. The letter only mentioned paying, calling, or appealing.

11

New York is the worst for taxes. I just got a bill saying I owed an extra $14 for working there one day in 2023, and now they’re charging me $29 total. They nickel and dime for everything.

12

New York has a practitioner hotline. Your tax person should be able to call and get this sorted out.

13

Colby said:
New York has a practitioner hotline. Your tax person should be able to call and get this sorted out.

But the person who posted this isn’t a practitioner.

14

Dezi said:

Colby said:
New York has a practitioner hotline. Your tax person should be able to call and get this sorted out.

But the person who posted this isn’t a practitioner.

Their tax person should be, though. They should be making that call.

15

Make sure you’re using the contact info on the official New York tax website and not just the number on the letter. It could be a scam.

16

You might be paying your tax person more than $130 to fight this. It might be easier to just pay it and move on.

17

Linden said:
You might be paying your tax person more than $130 to fight this. It might be easier to just pay it and move on.

They only charged me for filing my return, not for looking into this. I don’t expect them to keep chasing it without charging me, though. It’s probably some $0.00 form that got lost in the mail.

18

Linden said:
You might be paying your tax person more than $130 to fight this. It might be easier to just pay it and move on.

Same here. I’ve dealt with small amounts like this and sometimes it’s just not worth the hassle.

19

Linden said:
You might be paying your tax person more than $130 to fight this. It might be easier to just pay it and move on.

Agreed. If it’s not a big amount and you don’t want to keep calling them, paying it might save you a lot of time and stress.

20

You don’t need to live or work in New York to owe taxes there. This might be a penalty for paying late or underpaying. Honestly, I’d just pay it. They’re not likely to let it slide.