The most stressful thing about owing New York State back taxes is not knowing what to do about it. It’s important to take the time to understand not only your options forward but also the possible ramifications when taxes build up. Like other states, New York offers different paths to settlement as well as a legal means of collection against non-compliant taxpayers. Tax Resolution Professionals is here to guide you through the process of resolving your back due tax debts to the State of New York.
Getting Ahead Of Your New York State Back Taxes – Options For Payment & Handling Collection Efforts
Dealing With Collections
When your New York State back taxes have come to collective action, you should deal with it immediately. A NYS Tax Warrant can have a serious effect on your life. NYS has more time to collect than the IRS.
The New York State Statute Of Limitations
While the IRS may not collect taxes after the 10 year mark in most cases, the State of New York has much longer to collect. Residents of New York that owe back taxes will not pass the Statute of Limitations for 20 years in most cases. See our full explanation of the New York State Tax Warrant statute of limitations for more information. See our page covering IRS and State collection statute expiration dates if you owe the IRS or other states as well.
In the case that you simply can’t afford to make a tax payment, you may qualify for Hardship Status. Most taxpayers that qualify for a hardship have a good chance at an Offer In Compromise, which is discussed below. Read more about Hardship Status on our New York State Tax Debt Relief Guide.
Payment Options For Back Taxes Per The New York State Department Of Taxation And Finance
The New York State Department Of Taxation And Finance provides options for taxpayers who owe back taxes. In order for the State of New York to lift a tax warrant, you’ll need to pay off the back taxes or get an Offer In Compromise accepted. Approaching the New York State Department Of Taxation And Finance before they file a tax warrant is always a better option. Look over each payment option carefully, as they do have different eligibility requirements. Not all payment plans will get you out of a warrant being filed and a certain payoff period is required.
New York State Offer In Compromise – (OIC)
Filing a request for an NYS Offer In Compromise is the preferred option in most caes if you qualify. Do understand, however, that not all taxpayers who owe New York State back taxes will qualify. For eligibility requirements, forms, and steps to file read our New York State Offer In Compromise tax guide.
New York State Installment Agreement
Individuals who do not qualify for an OIC or that have an OIC declined may request an Installment Agreement through the New York State Department Of Taxation And Finance website. Some cases may require direct resolution with a NYS Revenue Agent. Approval or denial generally depends upon three conditions:
- If you have a history of compliance (or non-compliance) with previous state tax agreements, these will be a consideration.
- The status of your current financial condition is another factor the State of New York will consider before a final decision.
- Any New York State Department Of Taxation And Finance requirements that go unmet are grounds for denial. Be certain to follow all requirements and requests.
Additional Options For Settlement Of New York State Back Taxes
For the situation of couples who are going through separation or divorce, New York does offer Innocent Spouse Relief. Instructions are quite clear as you fill out Form IT-285. This form includes instructions for Innocent Spouse Relief, Separation of Liability and Equitable Relief.
Wrapping Up Your New York State Back Taxes
As a resident of New York, owing back taxes is never a comfortable circumstance. The truth is that the longer you wait to deal with it, the tougher it becomes to achieve a fair settlement.
Depending on your specific situation, you may easily qualify for one of the above options. One of our main goals as Tax Resolution Professionals is to provide taxpayers with the tools for settlement.
If for any reason the path ahead seems unclear and you owe more than $20,000, don’t hesitate to drop us a line on our Contact Us page. You will get a free consultation with one of our expert tax debt attorneys.