If you haven’t paid your outstanding business tax debt, we may take legal action against you to collect your business tax debt, including:
- Issuing a warrant and “docketing” the warrant in the County Clerk’s office. This has the effect of:
- Entering a tax warrant in the Court record as an enforceable judgment against you.
- The judgment (tax warrant) will be a matter of public record, which can affect your credit ratings.
- Enforcing the judgment debt by:
- Levying bank accounts
- Seizing assets, which may involve:
- Sending Sheriff’s officers to a place of business
- Padlocking a taxpayer's business and auctioning off its assets
- Referring the judgment debt to an outside collection agency
Procedures for Debt Resulting from an Audit
After an audit, we will send you a Notice of Determination if additional taxes are owed or if there will be a reduction in a refund you requested.
You can dispute the Notice of Determination within 90 days by:
For more information about how to appeal, please visit Business Tax Appeals.
At the end of 90 days, if you have not disputed the debt, or if you have, but the challenge has not been decided in your favor, and you still have not paid the taxes due, your case will be referred to our Collections Division. Collections will then send you a Final Notice. This notice will include information about the debt owed and information on how you can pay the debt and/or contact Collections. Collections may issue and docket a warrant for the debt and begin enforcing the judgment.
Procedures for Debt Resulting from a Failure to Pay Taxes After Filing a Tax Return
If you voluntarily file your taxes, but do not pay the amount you owe, we will send you a Notice of Tax Due, followed by a Notice of Demand. If your original filing contains an error, in order to dispute your charges, you must file an amended return. If you do not pay, your case will be referred to Collections, and Collections may docket a warrant.
When A Business Taxpayer is Closing or No Longer in Business
A business no longer operating in New York City is still liable for taxes (plus the penalties and interest) that were charged while it was in business. If you are trying to dissolve a business incorporated in New York State doing business in New York City, you are required by law to request that Finance certify that the business has paid its taxes to New York City. If there are any outstanding business-tax charges, they must be resolved before Finance will issue clearance, and New York State will not allow the corporation to be dissolved without this clearance.
To resolve business tax debt or request approval for a corporate dissolution, you should contact Collections.
Reducing Tax Debt for Business that Are Insolvent
If a business owes tax debt to New York City but is unable to pay this debt because it is insolvent, it may be possible for the business to apply for an Offer In Compromise.