Our tax attorneys can help you with the following NYS tax matters: – Use the Table of Contents below to Navigate.
Table of Contents
Installment Payment Agreements
If you are financially unable to pay the full amount of your tax liability you may qualify for an installment payment agreement (“IPA”). Under an IPA a taxpayer can elect to have monthly payments electronically withdrawn from their banking account. The benefit of entering into an IPA is that the taxpayer stays out of “collections enforcement” and will not have to worry about his/her bank account being levied or driver’s license being suspended. Note: When entering into an IPA the taxpayer agrees to stay current with their tax obligations going forward by filing tax returns timely and paying all future taxes as they become due.
A Tax Warrant also referred to as a Tax Lien or Judgment, is issued administratively by the New York State Tax Department and has the same force and effect as a money judgment within New York State. A Tax Warrant is public record and filed with the appropriate County Clerk’s office. Note: A tax warrant is a prerequisite and must be filed before any involuntary levy or seizure and sale of property may occur.
A levy is a legal seizure of the taxpayer’s property. A levy is generally made on bank accounts requiring the bank to remove money from bank account and send it to NYSDTF. A levy can also be made on money or receivables owed to the taxpayer from third parties. Certain money is exempt from being levied:
- social security and supplemental security income
- public assistance (welfare)
- alimony or child support
- benefits like unemployment, disability, workers compensation
- public or private pensions
An income execution is a type of levy that may be issued against your wages. First, you will be asked to voluntarily pay up to 10% of your gross wages each time you are paid. If you do not make voluntary payments, NYSDTF will have your employer automatically deduct up to 10% of your gross wages out of your paycheck. The income execution remains in effect until the outstanding tax liability is satisfied.
Responsible Person Assessments
For taxes such as sales and use taxes, withholding tax, and motor fuel excise tax, responsible persons of a business may be held personally liable for the business’s unpaid New York State tax liabilities. You may be considered a responsible person if you are an officer, director, or employee of a corporation or dissolved corporation, or employee of a partnership or sole proprietorship who was under a duty to act for the business to comply with the relevant provisions of the Tax Law. To be liable for withholding tax, a responsible person must also have acted willfully in failing to collect or pay over the tax. Note: If a responsible person assessment is issued against you and you do not agree with it, you generally have 90 days to appeal, by either requesting a conciliation conference or petitioning for a Division of Tax Appeals hearing.
If you disagree with an action taken by NYSDTF you may protest by filing a Request for Conciliation Conference through the Bureau of Conciliation and Mediation Services (BCMS). A conciliation conference is a fast and inexpensive way to resolve a protest without a formal hearing. The conciliation conference is conducted by an independent impartial conciliation conferee who will review all the evidence presented in order to determine a fair result. After the conference, the conferee will send the taxpayer a proposed resolution in the form of a consent. If the taxpayer signs the consent within 15 days the protest will be concluded. If the taxpayer does not return the consent within 15 days, the conferee will issue a conciliation order (determination). Note: If the taxpayer does not agree with the conciliation order, the taxpayer will have the opportunity to file a petition for a hearing with the Division of Tax Appeals within 90 days of the conciliation order.
Offer in Compromise
The New York State Offer in Compromise Program is designed to help financially distressed taxpayers who face overwhelming tax liabilities. This includes any liability administered by the Tax Department. Taxpayers accepted into the program may pay a reasonable amount as a compromise, satisfying the debt in full. Note: To participate, taxpayers must have filed all required New York State tax returns.
NYS Voluntary Disclosure
The New York State Voluntary Disclosure program encourages taxpayers who haven’t filed and paid their taxes to come forward voluntarily and pay what they owe. The program offers significant incentives to taxpayers who come forward (and pay): NYSDTF won’t impose penalties and won’t bring criminal charges against these taxpayers. The program covers all taxes administered by NYSDTF including income, corporate, and sales. Any taxpayer who meets the eligibility criteria can participate, even if their nonpayment was the result of fraudulent or criminal conduct.