Tax Relief Services in New York

There isn't a single program by that name. The New York State Department of Taxation and Finance has several tools: installment payment agreements, penalty relief, a limited offer in compromise program, and hardship based collection options. Each has its own rules. Our tax resolution practice focuses on the federal side, the IRS, so if your problem is mainly with the state, we'll tell you that up front and point you to the right NYS process.

New York State does accept compromises in some cases, after reviewing your finances, ability to pay and compliance history, but it's a separate process from anything with the IRS. Many New Yorkers owe both. Since the IRS balance is usually larger and the federal collection tools are more aggressive, that's where we concentrate, while making sure your state filings stay consistent with the federal plan.

It's the IRS program that lets some taxpayers pay less than the full balance. The IRS works out what it could reasonably collect from your assets and future income, and an offer generally has to meet that figure. You need to be current on filings and estimated payments to apply. We test the numbers first, then prepare Form 656, the financial statements and supporting documents, and manage the IRS review, which often runs many months.

Yes, if you give it a reason to. The IRS will release a levy when, for example, it's causing economic hardship, you've entered an installment agreement, or the balance is otherwise resolved. A bank levy freezes funds for 21 days before they're sent over, so time is short. We contact the IRS quickly, present your financial situation and ask for a release, while putting a longer term solution in place.

Often, yes. First Time Abate relief is available if your prior three years were clean. Reasonable cause relief covers events you couldn't control, such as a serious illness or a disaster. Either way, the IRS wants facts and documents, and generally wants you current on filing. We figure out which basis fits, write the request and send it in.

The IRS may prepare a substitute return using only the income it knows about, without your deductions or credits, and bill you based on that. Unfiled years also block most relief options. We prepare the late returns from your real records and file them in a way that supports the resolution, which often lowers the final balance.

You pay the balance over time in monthly installments. Smaller balances often qualify for a streamlined installment agreement with limited paperwork; larger ones require a financial statement. Interest and a reduced failure to pay penalty keep accruing until the balance is paid. We set the monthly amount based on your documented budget so the agreement doesn't default.

You can deal with the IRS yourself, or authorize a licensed professional such as an Enrolled Agent or a CPA. Enrolled Agents are licensed by the U.S. Treasury specifically for tax and have unlimited practice rights before the IRS in every state. Our founder is an Enrolled Agent, and since the IRS works with representatives by phone, mail and electronic submission, we can represent New York clients fully from Maryland.