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IRS Tax Debt Relief in New York
A New York tax attorney can help if you have an outstanding tax debt and owe money to the Internal Revenue Service or to the New York State Department of Taxation and Finance.
Your New York tax debt relief lawyer can:
- Review your federal tax bill and New York tax bill to ensure its accuracy
- Explain your legal options
- Communicate with the IRS and the New York State Department of Taxation and Finance on your behalf
- Help you determine how much you can afford to pay in a lump sum or installment payment plan
- Try to negotiate a tax debt reduction settlement with the IRS and the New York State Department of Taxation and Finance
Consequences of Unpaid Tax Debt
There are serious legal consequences if you do not pay your taxes by the date on which they are due, or if, as a result of a tax audit, the government determines that you've underpaid your income taxes.
The government can charge interest and penalties on your unpaid taxes. Similar to the interest and fees that are charged if you don't pay your credit card bill in full, these tax fines will continue to accrue until you pay off your debt. Interest and penalties can significantly increase the total amount you owe, so it's usually in your best interest to quickly pay your unpaid taxes.
If you ignore tax bills or give the government reason to believe you will not pay your tax debt, then the government may put a tax lien on your home, car, boat, motorcycle or other property you own. A tax lien gives the government priority access to any money you collect from the sale of the property. However, most buyers will refuse to purchase property until you pay what you owe and the lien is removed.
In addition, the government can get a tax levy, which allows them to seize your assets to repay your tax debt. For example, the government could take your paycheck, bank accounts and car to satisfy your debt.
When people receive a tax bill from the IRS and/or the New York State Department of Taxation and Finance, their first instinct may be to ignore the problem in hopes that it goes away. But that is the wrong move. If the government believes you're ignoring your tax debt, it will be more likely to pursue a tax lien or a tax levy.
If you instead hire a New York tax lawyer, then your lawyer can communicate with the government and let them know you understand the seriousness of the situation. Your lawyer can then help you get tax debt relief.
Legal Options for New York Tax Debt Relief
As previously mentioned, the government will charge you interest and penalties if you fail to pay your taxes on time. But your New York tax relief attorney may be able to get certain fines waived or negotiate a settlement allowing you to pay less than you actually owe. Among your tax resolution options:
- An offer in compromise
- Penalty abatement
- Installment agreement or payment plan
Let's look at these options in more detail.
Using an Offer in Compromise to Settle Your Tax Debt
If you'd face serious financial hardship paying your entire tax bill, the IRS will consider an offer in compromise. This allows you to settle your taxes for less than the total amount that is owed. It is worth noting, however, that you're ineligible for the offer in compromise program if you have an open bankruptcy filing.
New York tax attorneys can evaluate your financial situation and tell you whether you're a good candidate for the offer in compromise program. The IRS charges a non-refundable fee to apply for an offer in compromise, so you'll want to make an offer that the IRS is likely to accept. Your tax debt lawyer can offer advise on how much you should offer to pay.
Reduce the Amount You Owe With a Penalty Abatement
Your New York tax relief attorney can also help you get interest and penalties reduced or eliminated through a tax debt reduction policy known as penalty abatement. Penalties and interest are designed to punish taxpayers who deliberately and willfully attempt to avoid paying taxes. If your tax debt is the result of an honest mistake or you genuinely couldn't afford to pay your taxes, then the IRS will consider a tax penalty abatement, which will reduce your total tax bill.
Spread Tax Payment Out Over Time
If you simply can't afford to pay your taxes in one lump sum, you can spread out your payments over a number of months or years. With an IRS installment agreement or payment plan, you agree to pay the government a set amount each month until you've paid your taxes, interest and penalties in full.
Offers in compromise, installment plans and penalty abatement are among the most common types of tax resolution options. Your New York tax relief lawyer can advise you if you are eligible for other less common options, such as discharging your tax debt through personal bankruptcy.
Find a Local New York Debt Relief Attorney Today
The sooner you address your federal and New York tax debt, the sooner you'll get rid of your tax debt. Hire a New York tax attorney today and start exploring tax resolution solutions. Use the form on this page to find a local New York tax relief lawyer or call us at 877-913-7222.