In 2009, I made an error on my state tax return. This year, I received notice from the state indicating that due to underreporting on my tax forms, I owe $2,809.76 in taxes and $709.61 in "interest amount assessed."
So my question is, what interest rate is the state charging? Considering that I am getting a fraction of a percent on my savings, is New York charging loan shark rates?
By notifying me four years later -- I guess I am lucky the state did not wait seven years -- I am being charged for four years of interest. New York State needs to be fair when human error on a tax return is made, charge a reasonable interest rate (for example, 3 percent), and cap it at one year.
Henry Smith, Floral Park