Tax Debt Relief Solutions
Numerous individuals find themselves in arrears when it comes to their tax obligations, owing money to both the Internal Revenue Service (IRS) for federal taxes and the New York State Department of Taxation and Finance (NYS) for state taxes, including sales, income, and payroll taxes. This situation poses challenges for both taxpayers and government agencies, leading to the existence of programs designed to help negotiate and resolve these tax debts. Our office specializes in negotiating tax debts to achieve resolutions that are financially viable for our clients.
The IRS, with its extensive workload of processing millions of tax returns annually, is often a challenging entity to negotiate with, as it has limited resources to manage the enormous volume of tax-related issues. This task has become even more arduous due to the COVID-19 pandemic, which has caused the IRS to fall behind in its normal operations. However, our office is well-prepared to handle these negotiations on your behalf.
The IRS employs a range of collection methods to recover tax debts, including property seizures, wage garnishments, and bank account freezes, all with the goal of satisfying your outstanding tax debt. If you have received a Final Notice of Intent to Levy and Notice of your right to a Hearing, it is critical to contact our office to address this matter promptly. Compliance and timely action are crucial when dealing with the IRS.
Partial Pay Installment Agreements: For taxpayers unable to afford 72 or 84-month installment agreements, this option bases the payment plan on your financial statement, considering your income and expenses. While these plans accrue penalties and interest, the taxpayer may end up paying significantly less over ten years. Reductions in the total balance owed are possible due to the statute of limitations, and tax liens will be filed. The IRS may request updated financial statements every 24 months, which can lead to increased payments if your income has risen. This is a cost-effective choice for qualifying taxpayers.
Numerous individuals find themselves in arrears when it comes to their tax obligations, owing money to both the Internal Revenue Service (IRS) for federal taxes and the New York State Department of Taxation and Finance (NYS) for state taxes, including sales, income, and payroll taxes. This situation poses challenges for both taxpayers and government agencies, leading to the existence of programs designed to help negotiate and resolve these tax debts. Our office specializes in negotiating tax debts to achieve resolutions that are financially viable for our clients.
The IRS, with its extensive workload of processing millions of tax returns annually, is often a challenging entity to negotiate with, as it has limited resources to manage the enormous volume of tax-related issues. This task has become even more arduous due to the COVID-19 pandemic, which has caused the IRS to fall behind in its normal operations. However, our office is well-prepared to handle these negotiations on your behalf.
The IRS employs a range of collection methods to recover tax debts, including property seizures, wage garnishments, and bank account freezes, all with the goal of satisfying your outstanding tax debt. If you have received a Final Notice of Intent to Levy and Notice of your right to a Hearing, it is critical to contact our office to address this matter promptly. Compliance and timely action are crucial when dealing with the IRS.
Partial Pay Installment Agreements: For taxpayers unable to afford 72 or 84-month installment agreements, this option bases the payment plan on your financial statement, considering your income and expenses. While these plans accrue penalties and interest, the taxpayer may end up paying significantly less over ten years. Reductions in the total balance owed are possible due to the statute of limitations, and tax liens will be filed. The IRS may request updated financial statements every 24 months, which can lead to increased payments if your income has risen. This is a cost-effective choice for qualifying taxpayers.
In a Chapter 7 Bankruptcy, income taxes are the only IRS debt that can be discharged. Other taxes, such as payroll taxes, are not eligible for discharge. To be dischargeable, the income tax debt must be at least three years old, the associated tax return must have been filed, and the debt must have been assessed by the IRS over 240 days before filing for bankruptcy.
NYS Tax Collection:
The primary difference between NYS and IRS tax debts is their enforcement methods. While both agencies can collect tax refunds to satisfy debts, NYS has more immediate and severe enforcement options. NYS can issue tax warrants, levies, income execution orders, and seizures, and may even suspend driver’s licenses, creating challenges for taxpayers. Additionally, NYS installment agreements offer a maximum repayment period of 36 months, significantly shorter than the IRS’s 72 and 84-month installment agreements.
In a Chapter 7 Bankruptcy, the only NYS debt dischargeable is sales taxes, while payroll taxes and other fiduciary taxes are not eligible for discharge. Specific requirements must be met for the discharge of income tax debt, including the tax being at least three years old, the associated tax return having been filed, and the debt having been assessed by NYS over 240 days prior to filing for bankruptcy.
Our office possesses robust negotiation skills, offering the advantage of potentially better outcomes than typical tax negotiation companies or attorneys. Our expertise includes strategically positioning clients to show creditors that they have viable alternatives, including litigation and bankruptcy options. This leverage enables us to negotiate more effectively on your behalf and secure favorable settlements.
Our experienced team of tax debt negotiators and attorneys serves clients in Nassau and Suffolk Counties, Long Island. We understand the complexities of negotiating tax debt with the IRS and NYS, and we work diligently to find effective solutions tailored to your specific situation. If you need assistance with your tax debt, please contact us for a free consultation at 631-203-1730. Our consultations are free, and our legal advice may prove invaluable.