Tax Debt Solutions Brooklyn

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Tax Debt Negotiation Attorneys and Tax Settlement Lawyers – Nassau & Suffolk Counties, Brooklyn 

Our Lawyers Seek to Negotiate Tax Agreements with IRS and NYS that Improve our Client’s Situation

• Tax Negotiations In General
• IRS Debt Negotiations
• IRS Debt Enforcement:
• IRS Resolution Methods:
• IRS Tax Debt and Bankruptcy:
• NYS Debt Negotiations
• NYS Tax Enforcement:
• NYS Tax Debt Resolutions
• Challenging NYS Tax Department Actions
• Differences Between NYS Tax Debt and IRS Tax Debt:
• NYS Voluntary Disclosure and Compliance Program:
• Grieving Property Tax Assessment:
• Discharging NYS Debt through Bankruptcy
• Why Use Our Law Office to Resolve Your Tax Debt?
• How We can Help You Negotiate Tax Debt and Settle Tax Obligations –

Tax Negotiations In General :

Many people have trouble keeping up with their tax payments to the New York State Department of Taxation and Finance (“NYS”), which includes sales taxes, income taxes, payroll taxes, and other state taxes, as well as the U.S. Internal Revenue Service (the “IRS”), which includes individual income taxes, corporate income taxes, payroll taxes, and other federal taxes. There are procedures in place to settle the amount owing to each of the two governmental bodies because this is an issue that affects both the tax payer and the federal and state governments. Our team can work with you to negotiate a tax debt settlement that will work for you going ahead.

IRS Debt Negotiations:

The Internal Revenue Service (IRS) supplied the following statistics: in 2019, the IRS processed around 133,949,000 tax returns, with about 76,000 personnel. This figure illustrates how much work the IRS has on its hands and has not changed much from the previous year. With these figures in mind, it is easy to see why dealing and negotiating with the IRS is so difficult..

The IRS is currently even more behind schedule than they were before COVID-19. The tax deadline was extended by the IRS to July 15, 2020, from April 15, 2020. The IRS is far behind where they would have been this year due to the coronavirus, even with the extension of the tax deadline. Because of this, negotiating tax debt can be more challenging right now. However, our office is equipped with the tools needed to negotiate on your behalf confidently and easily.

IRS Debt Enforcement:

Notice of Levy:

A broad tool for enforcement, an IRS levy permits the following actions: taking or freezing money from your bank or other financial accounts; garnishing your wages; and seizing your property to satisfy your tax debt. Additionally, in order to collect on your IRS debt, the IRS is able to seize and sell personal belongings like cars and real estate. It is crucial that you contact our office so that we can take care of this for you if you have received a Final Notice of Intent to Levy and Notice of your right to a Hearing.When dealing with the IRS, compliance is crucial. This notice is the last step before the IRS pursues a levy against you.

IRS Resolution Methods:

Please see the following IRS programs that our office will use to negotiate your tax liability:

Extension to Pay: Are agreements that give taxpayers an extra 120 days to settle their entire IRS debt. By doing this, the taxpayer is able to avoid paying late fees.

72 Month Installment Agreements: Are payment plans that give the taxpayer six years or seventy-two months to repay the IRS.Taxpayers with outstanding balances up to $50,000 can enroll in these plans. A complete financial statement is usually not required by the IRS, but they may request financial documents.

84 Month Installment Agreements:  Are payment plans that give taxpayers seven years or eighty-four months to pay off their IRS debt. Taxpayers who owe the IRS more than $50,000 but less than $100,000 can enroll in these plans. A complete financial statement is usually not required by the IRS, but they may request financial documents. Finally, before this payment plan is finalized, the IRS will probably also require that automatic payments be set up.

Partial Pay Installment Agreements: Are alternative payment plans for taxpayers unable to afford 72- or 84-month installment agreements. Based on your financial statement, which takes into account your income and expenses, is the Partial Payment Installment Agreement. The taxpayer will probably pay a lot less after making payments for ten years, even though all penalties and interest will be applied to these plans. Because the taxes owed will eventually be deemed non-collectable due to the statute of limitations, a reduction in the total amount owed is possible. Additionally, tax liens will be filed, and if the taxpayer’s income increases, the IRS may request updated financial statements every 24 months, which could result in higher payments.

Currently Non-Collectible (CNC): Are a choice for which the provision of financial statements is necessary. With this option, qualifying taxpayers can stay in good standing with the IRS and avoid having to pay back money on a monthly basis. Financial statements will probably be needed annually to maintain the taxpayer’s debt in a Current Non-Collectible status with the IRS..

Offers in Compromise (OIC): Are payment plans that enable taxpayers to pay less than the full amount owed to settle their entire IRS debt. If the taxpayer is thought to be able to pay the debt in full or as part of an offered repayment plan, the IRS will not accept an Offer in Compromise.

IRS Tax Debt and Bankruptcy:

Discharging IRS Debt through Bankruptcy: Income taxes are the only IRS debt that can be discharged in a Chapter 7 bankruptcy. Bankruptcy cannot be used to remove taxes other than income taxes, like payroll taxes. The client’s requested discharge of income tax debt must span a minimum of three years, be supported by a filed tax return, and have been accessed by the IRS for more than 240 days prior to the client filing for bankruptcy.

NYS Debt Negotiations:

The taxes in New York State are among the highest in the country. Many people struggle with their taxes, particularly if they were improperly withheld or filed for in the prior tax year. To further compare and illustrate that New York State taxes are among the highest in the country, view the graph below, courtesy of taxfoundation.org. As can be seen, New York has an average individual state income tax rate of 8.82%. For New Yorkers, this represents a significant financial hardship because, in contrast, some other states do not even collect state income taxes. On the other hand, reading our summary will help you better understand your tax obligations.

NYS Tax Enforcement:

New York Tax Warrants:

Is equivalent to a civil judgment in the state of New York against the taxpayer. This is the state’s initial attempt to acquire an enforcement mechanism. Before the state can enforce the tax obligations against, this warrant is necessary. The state may then attempt to garnish your wages and attempt to seize and sell any assets, whether they be personal or real. The state would then deduct your entire debt from the proceeds of the money it had collected through enforcement. To make sure you do not have a tax warrant, click the provided hyperlink and look up your name in the New York State Tax Warrant Notice System.

Levies:

After a tax warrant is issued, one or more of the banks where you have accounts may receive a levy from New York State. This covers joint accounts, in which you may have an account with a person who is not accountable for the debt. Your account is frozen by a levy, and you cannot access your money until your tax liability is resolved with the state.. 

 Income Execution Orders:

The state may issue an income execution prior to or subsequent to filing a tax warrant, in contrast to the other methods of enforcement used by New York State. You have twenty (20) days after receiving notice to make the first payment in order to comply with an income execution order. Every time you receive a payment, an income execution order demands either ten percent (10%) of your gross income or twenty-five percent (25%) of your disposable earnings. Please click the following link to calculate your income execution payment in more detail. Income Execution Payment Calculator.

Seizures:

The state will examine your file for potential seizure after attempting every other avenue of collection. Your cars, cash register contents, business, etc., may be seized if it is decided that seizing your property would benefit New York State. This is allowed under New York Civil Practice Laws and Rules Article 52 (CPLR Article 52), see the prior hyperlink for more information under this statue.

Driver’s License Suspension:

The NYS Tax Department is permitted by law to request that your New York State driver’s license be suspended if you owe the state at least $10,000 in unpaid taxes. You will receive a Notice of Proposed Driver’s License Suspension from New York State, giving you sixty (60) days to pay off your tax debt to the state. New York State will then get in touch with the Department of Motor Vehicles (DMV) and suggest suspending your New York State license if the issue is not resolved in sixty days.

If there are unpaid taxes owed to New York State, there are exceptions to the NYS driver’s license suspension policy. If you meet certain requirements, the enforcement of your unpaid tax debt to New York State will not suspend your driver’s license: you must have a commercial driver’s license (CDL), be receiving Supplemental Security Income (SSI), pay child or spousal support, have your wages garnished, or receive public assistance benefits.

New York State offset programs

If you owe money to any of the following organizations: the Internal Revenue Service (IRS), the NYS Tax Department, another NYS agency, or tax debt owed to another state, New York State may also apply any refund you receive from NYS to any of these entities.

Money Exempt from Enforcement:

Social Security and Supplemental Security Income, public assistance programs like welfare, spousal support, alimony, or child support, unemployment, disability, workers’ compensation benefits, and pensions are among the funds and assets that are exempt from New York State tax enforcement.

NY Tax Debt Resolutions

Installment Payment Agreement (IPA):

Taxpayers with a balance of $20,000 or less have the option to spread out the payment of their balance over time by using an Installment Payment Agreement under the NYS Taxation Department. Installment agreements are permitted in New York State, but they can only last for a maximum of 36 months. The maximum period of time to pay debt in an installment agreement with New York is approximately half that of the IRS installment agreements, which makes this different from those with the IRS..

Offer in Compromise (OIC):

Qualified taxpayers who have suffered financial hardship can settle significant tax obligations through a New York State Offer in Compromise. Insolvent taxpayers would be considered eligible by the state, which would also assess individuals if they haven’t declared bankruptcy or closed their company. If solvent taxpayers would suffer undue financial hardship if the debt was paid in full, the state would examine this possibility. A taxpayer experiences undue economic hardship when they are unable to cover their reasonable living expenses. Our office will argue that you, the taxpayer, would suffer undue financial hardship if you were required to pay your entire tax liability using any all-mitigating circumstances or facts. We will use your age, work history, employment status, any long-term illnesses, any medical conditions, and any disability to help explain your financial hardship to New York State. In addition, our office may, if appropriate, make the case for undue financial hardship, any unique educational costs, a medical emergency, or a natural disaster. It’s also debatable whether you should be able to borrow more money or sell assets to pay off your tax obligation. Our office will be arguing COVID-19 as a special circumstance in the future due to its unpredictable, far-reaching, and severely damaging financial impact on taxpayers.

Challenging NYS Tax Department Actions:

You have the legal right to contest or object to any bill of notice you receive from the NYS Tax Department. Our office can assist you in a number of ways with this.

Informal Protest:

The quickest and least expensive way to protest is through informal means, which our office would do with your permission. If you would like to contest the bill or notice, we would speak with the NYS Tax Department on your behalf.

Formal Protest:

Our office has the option to petition for a Tax Appeal hearing or request a conciliation conference. In each case, our office would act as your advocate and fiercely defend your rights and welfare.

Differences between NYS Tax Debt and IRS Tax Debt:

The way that tax debt is enforced distinguishes NY tax debt from IRS tax debt. If you owe unpaid federal taxes, the Internal Revenue Service will probably seize any tax refund you get. Although New York State could take the same action, the results would probably differ because state tax refunds are usually much smaller than federal tax refunds. However, New York State has harsher enforcement practices and more direct ways to impact your life. Driver’s licenses in New York are a privilege, not a right, and they can be easily revoked for breaking the law. Your passport may be suspended by the IRS, but most people do not regularly file lawsuits against this document.For information on these enforcement strategies, please see our section on NY Tax Enforcement. New York may issue tax warrants, levies, income execution orders, and seizures. These procedures resemble a federal IRS Notice of Levy; for additional details on this IRS enforcement technique, please refer to our section. Finally, obtaining an installment agreement is more difficult in New York, where you are only granted thirty-six months to pay back the debt, as opposed to the IRS’s eighty-four (84) and seventy-two (72) month installment agreements.

NYS Voluntary Disclosure and Compliance Program:

Your best bet if you have never filed taxes before is to have our office apply for the NYS Tax Department’s Voluntary Disclosure and Compliance Program on your behalf. You will have the chance to escape financial penalties and potential criminal charges by doing this. We’ll let the state know what taxes you owe and that you must pay them. We can set up a repayment plan for these tax arrears over time if you are unable to pay them all at once. Lastly, you will need to commit to paying all of your future taxes when you join this program.

Grieving Property Tax Assessment:

Do you think your property taxes are excessively high? Are you paying too much in taxes because your property was valued incorrectly? In an effort to reduce your property taxes based on a property valuation adjustment, our office can assist you in having your property valuation reevaluated. You must appear with our office before the BAR, which is made up of individuals chosen by the village, town, or city boards. To demonstrate your right to a decrease in your property assessment, we will present arguments and supporting documentation.

Discharging NYS Debt through Bankruptcy:

The sole New York state debt that cannot be discharged under Chapter 7 bankruptcy includes payroll taxes, sales taxes, and other fiduciary taxes in which the owner of the business holds tax funds on behalf of third parties. Sales taxes and payroll taxes are examples of fiduciary taxes that bankruptcy cannot remove. The client’s requested discharge of income tax debt must be at least three years old, the debt must have been accessed by the IRS more than 240 days before the client filed for bankruptcy, and the tax return demonstrating the debt must have been filed and free of fraud allegations.

Why Use Our Law Office to Resolve Your Tax Debt?

In order to achieve a wide range of potential negotiated outcomes, our office possesses strong negotiation skills. Even though the average tax negotiation company, accountant, or attorney is a skilled negotiator, we have more leverage than them because we can show creditors—either explicitly or implicitly—that the individual tax payer and/or business owner has options for litigation and bankruptcy, as well as some “good cards to play” that we can use to our advantage in order to obtain a better negotiated deal.

How We can Help You Negotiate Tax Debt and Settle Tax Obligations –

We first meet with you to learn about your background, objectives, and difficulties. The first consultation will outline options and alternatives in what can be a challenging and complex situation. In order to pursue your negotiated tax debt matter, if you choose to use our services, we will first conduct an intake to obtain additional information and documentation from you. In the event that you decide to hire us, we will sign a retainer agreement outlining all the specifics of our engagement.

Please contact us at 631-271-3737 for a free legal consultation regarding resolving tax debt owed to IRS and/or NYS.

Our Consultations are Free, but Our Legal Advice May be Invaluable.
(C) NEGOTIATION – How we begin: we must obtain POA authority in order to file or catch up on tax filings, transcripts, and records that are current. We also need to determine which years and types of taxes are due, as well as the amount owed. Let’s introduce ourselves. Why the client needs us and how we close deals.
(D) DEFENSE – Kinds of appeals and cases that individuals file with the IRS; Q: personal liabilitysuch as the Innocent Spouse Defense and the Statute of Limitations Not Being Personally Liable; Not an Officer in Charge; Make an effort to lower fines and interest.
(E)  BANKRUPTCY –   Options for Bankruptcy: SDNY rulings and mediation; new cases; relaxation of standard; Chapter 7, 13 and 11.
2. NYS -SAME ; NEEDS INFO.:
3. For BOTH  – How do we assist our clients? Why do we need to exist? What benefits do we have when we negotiate?
4. MORE INfO –  – More details about how debt was incurred, how to close the deal, what documents and information are needed, and the benefits and drawbacks of each strategy are needed for each paragraph in the tax section.
5.  Real Life Cases – pls give fact patterns.
6.  Strategy to outrun SOL.  

TAXES (Additional Outline) Camron, please complete the section about New York State. Let’s review and see if we can provide more details for IRS. Each can have the following outline (BUT separate IRS and NYS and make references to their own guidelines/statements/bulletsins): 1. WHAT TAXES – What taxes are levied by each and what circumstances can lead to someone owing money, such as fraud, error, or failure to file 2. WHEN / HOW PURSUED – How and when do these agencies discover and initiate the process of pursuing unpaid debts? 3. CREDITS, INTEREST, AND COLLECTION METHODS: computations; additional sums; salaries, bank accounts, retirement accounts, real estate liens and sales, close of business 4. LITIGATION: how and when to defend them in court. Protective measures. 5. OPTIONS FOR BANKRUPTCY – Priority debt with interest due in a 13 or 11 years. NEGOTIATION IN GENERAL: This section focuses on the negotiations that are offered with each of the following: Getting Started – file taxes, transcripts, proof, notices of appearances, and other authority to negotiate. In a 7 can discharge some non-priority debts *6. b. Our capabilities c. Approaches d. Statute of Limitations e. Defense/Mitigation: (i) Not a Responsible Officer; (ii) Innocent Spouse; (iii) Lower Income than Estimate; (iv) Error * 7. OPTIONS FOR NEGOTIATION: * Offer in Compromise; Restoration; Installation Plan; Partial Installment Plan; Uncollectible Status;8. OUTCOMES: Settlement or payment plan; SOL; BK discharged; uncollectible status may be reexamined; negation outcomes may be temporary or permanent.