Gov. Paterson yesterday defended efforts by the revenue-strapped state to squeeze extra dough out of pizzeria owners and other small businesses with threats of audits and jail time.
“We are giving these businesses a second chance to take a look at books and pay their taxes,” Paterson said after speaking at the Foreign Policy Association Luncheon on the East Side.
“If they don’t, then just like any other state taxpayer, we’re going to come after them,” the governor continued.
The Post yesterday reported a push by the Department of Taxation and Finance to raise $30 million from pizzerias, used-car dealers and other cash-heavy businesses who sometimes lowball their sales-tax payments.
The department mailed 10,000 letters warning that business owners who fail to make good could be liable for civil or criminal charges.
Letters sent to pizzerias came attached with a news release detailing a recent tax-fraud roundup of four western New York slice slingers.
Pizza-shop owners and their accountants have slammed the efforts as “scare tactics” that unfairly target small businesses.
But Paterson said the state understands most tax problems are caused by neglect, not maliciousness. The state is offering to waive penalties on any back taxes for those who come forward.
“We thought it was right to give them fair warning that we’re coming,” Paterson said.