Tax debt negotiation attorneys and tax settlement lawyers specializing in Nassau and Suffolk Counties on Long Island.

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

Tax Negotiations In General :

Many people fall behind in paying taxes to both the U.S. Internal Revenue Service (the “IRS”) compromised of income taxes for an individual tax payer, corporate income taxes, payroll taxes, and other federal taxes and the New York State Department Taxation and Finance (“NYS”) compromised of sales taxes, income taxes, payroll taxes, and other state taxes. This is a problem for both the tax payer and the federal and state governments, as such, there are programs in place to negotiate the debt owed to both respective governmental agencies. Our office can negotiate your tax debt and come to a resolution that suits you moving forward.

IRS Debt Negotiations:

The following statistics are provided by the IRS; the Internal Revenue Service had approximately 76,000 employees who processed roughly 133,949,000 tax returns in 2019. This statistic has not changed much since last year and highlights the fact that the IRS is inundated with work. Understanding these statistics, it is quite clear why it is so very hard to deal and negotiate with the IRS.

Currently, the IRS are now even more backed up then they were prior to COVID-19. The IRS extended the tax deadline from April 15, 2020 to July 15, 2020. Despite the tax deadline extension, the IRS is firmly behind where they would have been this year because of Coronavirus. Thus, negotiating tax deb can be more difficult at the present time, but our office has the necessary systems in place to negotiate on your behalf with ease and confidence.

IRS Debt Enforcement:

Notice of Levy:

An IRS Levy is broad enforcement tool and allows the following methods of enforcement; the seizure of your property to satisfy your tax debt, garnishment of your wages, take, or freeze money in your bank or other financial accounts. Moreover, the IRS is permitted to seize and sell vehicles, real estate, and other personal property to satisfy your IRS liability. If you have received a Final Notice of Intent to Levy and Notice of your right to a Hearing, it is important to call our office to handle this matter for you.  This notice is the step right before the IRS pursues a levy against you and compliance is of the utmost importance when dealing with the IRS.

IRS Resolution Methods:

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

Extension to Pay:  Are agreement plans that provide taxpayers an additional 120 days to pay the IRS debt owed in full. This allows the taxpayer to avoid any late payment penalty.

72 Month Installment Agreements: Are payment plans that provides the taxpayer 72 months or 6 years to payback the IRS.These plans are available to taxpayers with up to $50,000 in tax debt owed. The IRS may require financial documents but typically do not require a complete financial statement.

84 Month Installment Agreements:  Are payment plans that provide taxpayers 84 months or 7 years to repay their IRS debt.  These plans are available to taxpayers with over $50,000 but under $100,000 owed to the IRS. The IRS may require financial documents but typically do not require a complete financial statement. Finally, the IRS will likely also require this payment plan have automatic payments set up prior to finalizing this plan.

Partial Pay Installment Agreements: Are payment plans that provide an alternative to taxpayers who cannot afford either 72 or 84-Month Installment Agreements. The Partial Payment Installment Agreement is a plan which is based on your financial statement, which considers your income and expenses. Despite all penalties and interest accrued being applied to these plans, the taxpayer will likely pay significantly less after making payments for 10 years. A reduction to the total balance owed is possible because the taxes owed will be eventually be classified as non-collectable due to the statute of limitations. Moreover, tax liens will be filled, and the IRS may ask for updated financial statements every 24 months, which may lead to increased payments if the taxpayer has an increased income. Overall, this is an affordable option for those taxpayers who qualify.

Currently Non-Collectible (CNC): Are an option that requires financial statements to be provided. This option allows for eligible taxpayers to avoid a monthly repayment plan while allowing the taxpayer to be in good standing with the IRS. The IRS will likely require financial statements every year to continue to have the taxpayer’s debt in a Current Non-Collectible status.

Offers in Compromise (OIC): Are payment plans that allow taxpayers to settle their entire IRS debt for less than the total owed. The IRS will not accept an Offer in Compromise if the taxpayer is believed to have an ability to pay the debt either as a lump sum or in a repayment plan offered.

IRS Tax Debt and Bankruptcy:

Discharging IRS Debt through Bankruptcy: The only IRS debt that is dischargeable through a Chapter 7 Bankruptcy is income taxes. Taxes other than income taxes, such as payroll taxes,  can never be eliminated through Bankruptcy. The income tax debt that a client is seeking to be discharge must be at least three years, the tax return showing the debt must have been filed and the debt must have been accessed IRS over 240 days prior to filing for Bankruptcy.

NYS Debt Negotiations:

New York State taxes are among some of the highest taxes in the United States.  Many people have difficulties with their taxes especially if not deducted or accounted for properly through the previous year of taxes.  See the below graph compliments of taxfoundation.org, to further compare and express that New York State Taxes are the among some of the highest in the United States of America. As one can see the average individual state income taxes for NY is 8.82%. This is a huge burden financially for New York Residents because in comparison some other states do not even collect state income taxes. However, if you read our overview you will obtain a better understanding of your tax liabilities and how our office may help you to resolve your specific tax issues.