I received a statement of audit letter from NY state stating that I did not report the correct amount of retirement contributions(414h) to a flexible benefits program. They are charging me 20% interest on top of what they say I owe.. Is this correct? Is there a way to rebut this letter to avoid paying the interest?
I don't understand how the interest is calculated. Its not even 10 days past April 15th. I will pay what I owe immediately. Why are they charging me interest?
NYS is charging interest on tax that was not paid on or before the due date of your return. To calculate the correct amount of your interest and penalties, you can use the Penalty and Interest Calculator.
Per New York State, if the tax you report on your return is less than the correct tax by more than 10% or $2,000, whichever is greater, you may have to pay a penalty.
The penalty charge is:
If you disagree with the notice, you can respond to your bill or notice online or call the number listed on your notice and speak with a representative. You may attempt to request penalty abatement, but in most cases interest may not be waived.