SALT Strategies

New York State Tax Department Switches Banks – Affecting Taxpayers with Debit Blocks on Their Accounts

Bank-300x291The New York State Tax Department is switching banks – and that should make you sit up and take notice if you or your clients use debit block services to electronically pay one or more New York State taxes.

You only have until June 25, 2015 to contact your bank and have them add the new bank account information. If you don’t, your bank could reject your next payment and you may also get a bill from the state for the amount due – including penalty and interest.

Debit block services are employed to protect bank accounts from unauthorized electronic charges. Your bank will only permit and process authorized transactions.

If you are currently authorizing the NYS Tax Department to deduct payments from a bank account and there is a debit block on that account, you need to do the following:

  • Contact your bank to add the State’s new company IDs and names to the bank account. The State asks that you not remove the old company ID.
  • Add the new information for each type of payment you make.  Each payment type, including unemployment insurance, has its own company ID and name.

Affected taxpayers should review the full memo on the NYS Website for full details.

And remember, these steps must be completed by June 25, 2015 for future payments to be successful.

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