Getting an NYS tax lien removal through is not that easy. The way to get it done is by satisfying the debt by paying it off or getting a tax settlement accepted. Here we will explain the options and process for New York State tax lien removal.
Removing an NYS Tax Lien requires a resolution
Once a tax warrant is issued and a lien is placed on the property, the tax needs to be completely paid in order to come off. Now there are a few ways that may have you paying less than the actual debt, but here are the most common options:
- Pay in full – Pay the debt off and the liens come off.
- Payment Plan – Once paid in full, the liens will be released.
- Offer In Compromise – Debt is settled for less than you owe. Hard to get if you have valuable property though. Once the terms of the Offer are complete NYS tax liens will be released. NYS Offer In Compromise is often tougher to get accepted than the IRS, but it depends on the case.
- Tax debt expires – NYS generally has 20 years to collect on a tax debt. The IRS has 10 years. See our page on expiring tax debts for more information on tax debts expiring.
Below is what the NYS tax payment page looks like.
A cutout of the NYS tax payment page.
You might qualify for a penalty abatement if you pay it in full or are in a payment plan. These can be difficult to get and you may want to have a tax attorney evaluate your eligibility. They have an option to use an online services account and another option called Quick Pay, not to be confused with Chase QuickPay.
Selling a property with an NYS tax lien
The debt must be paid in full with guaranteed funds to release the lien. The state then issues a Notice of Pending Warrant Satisfaction. Most title companies will accept this as proof the lien will be removed.
Some notes on New York Sales Tax, Payroll Tax and personally filed liens
Sales tax and Payroll tax are treated as “trust fund tax” in New York State. They treat the funds as if you were holding it on behalf of the government and personally assess the debt on responsible parties. These taxes are “paid to you” instead of withheld by you for your own tax due. Many people call us surprised that they have tax liens for tax debts from a business. They thought since it was a corporation or LLC they would be protected. Not when it comes to sales tax and payroll tax.
Getting help with NYS tax lien removal
To get help with your NYS tax issue go to our Contact page or call us at (888) 515-4829. Got an IRS lien too? Check out our guide on IRS lien withdrawal or have us do it for you. Although our office is based in Las Vegas, we have handled more NYS tax cases than most NY tax attorneys.
