Settling New York State Taxes – Your Options For Debt Resolution

Settling NYS taxes can be a difficult task. New York State takes a much harder look at submitted settlements than the IRS, but they often will allow more expenses. Many taxpayers may find themselves with an NYS tax settlement accepted and an IRS one denied or vice versa.

Settling NYS Taxes - Your Three Main Options

Options To Resolve NYS Tax Debt

There are three resolutions that apply to most cases when the debts to NY State are fixed and final: Offer In Compromise, hardship, and payment plans. NYC taxes are also collected by NYS, so they are dealt with in the same way when it comes to collections.

Does NYS have a tax forgiveness program?

Both businesses and individuals may qualify for a NYS Offer in Compromise. If successful, it can lead to tax debt getting cleared for a significantly smaller sum. However, not all who apply may succeed. Find out more below.

NYS Offer In Compromise: The Best Way To Settle NYS Taxes

We have a full, step-by-step guide on NYS Offer In Compromise. When people think of settling NYS taxes with the NY Department of Taxation and Finance, this is the most common option they think of. The problem is not everyone qualifies. The examiner with the State of New York is going to want to see that you are barely covering your living expenses at the end of the month. Some clients simply make too much money to qualify.

settling nys tax debt

A tax attorney can help you get the calculations right on the money.

Hardship Status: Temporarily Settles NYS Tax Collections

Hardship status is an option to settle NYS taxes if an Offer In Compromise is not accepted yet income is still low. This puts the case into a payment plan for $0. The state does not look for any additional payments, but the debt remains. 20 years after the date they are assessed in most cases, NYS taxes expire. See our Tax Collection Statutes page for more info. The debt eventually expires if you keep having hardship renewed.

Hardship status for NYS taxes usually is not a complete solution. Each year NYS will renew the hardship based on your financial information.  Offer In Compromise is heavily preferred for that reason because if it is accepted, the case is over with.

NYS Payment Plan and Penalty Abatement

A payment plan for past due New York State taxes is a common solution. Many of the cases we work on involve a large IRS debt and a not-as-large NYS tax debt. This results in clients qualifying for a settlement with the IRS but not New York. Putting the balance into a payment plan is the easiest solution.

The Best Result For Settling NYS Taxes Comes With An Informed Decision

Make sure you make the right choice when trying to settle NYS taxes. If you are going it alone make sure to help out our comprehensive tax help guide. When you have a debt over $20,000 to the IRS, NYS, or both, it may be worth it to contact a qualified tax attorney to handle your case. Go to our Contact Us page or call us at (888) 515-4829. Have a free consultation with one of our expert tax debt attorneys to find out the best solution for your case.


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