Unpaid taxes at the federal or state level can lead to severe penalties from the IRS and the New York State Department of Taxation and Finance. If you have recently received a Notice and Demand for Payment from either of these agencies, help is available. Talk with our team to learn your options and what you can do to avoid the severe penalties and harsh collection methods these agencies can employ to recover the taxes you owe.

A New York tax attorney can help you with IRS relief and tax relief in New York. At Delia Law, we help clients with all types of unpaid tax issues, helping them avoid liens, levies, and wage garnishment whenever possible. If the IRS or New York State Department of Taxation and Finance has made an error when issuing a Notice and Demand for Payment, we fully explore our clients’ options and help them clarify these issues and correct their tax records. When you need IRS relief or New York state tax relief, the right attorney can be an incredible asset. 

Unpaid Tax Penalties from the IRS

If you owe the federal government taxes as an individual or business owner, you could face a wide range of potential consequences that can cause financial problems for you or your business for years to come. Once the IRS has determined a taxpayer owes back taxes, the agency conducts a thorough review of the taxpayer’s financial status and tax record to determine the exact amount they owe. Next, the IRS issues the taxpayer a Notice and Demand for Payment that includes the full amount owed and the deadline for repayment.

If the taxpayer does not respond to the Notice or fails to meet the repayment deadline included in the Notice, the IRS will begin their collection efforts. Their methods may include seizing the taxpayer’s assets and property or filing a lien against the taxpayer, which notifies creditors the IRS has a legal claim against the taxpayer’s property. The IRS may also choose wage garnishment, which means a percentage of every paycheck the taxpayer receives will go to the IRS toward paying their debt. Unlike private creditors that must secure judgments against debtors and may only take a limited amount from their paychecks once judgments have been obtained, the IRS has the ability to garnish a taxpayer’s wages without a court order, and for a much greater percentage of the taxpayer’s pay.

Potential Unpaid Tax Penalties from the State of New York

While the IRS can enact strict penalties for unpaid taxes, the New York State Department of Taxation and Finance has many options for unpaid tax collection. Once the New York State Department of Taxation and Finance has issued a Notice and Demand for Payment, the taxpayer must respond appropriately. Otherwise, the Department’s Civil Enforcement Division will file a tax warrant against the taxpayer. This is basically a civil liability claim that automatically places a lien against the taxpayer’s property.

In addition to these methods, the Civil Enforcement Division of the New York State Department of Taxation and Finance can also suspend a taxpayer’s New York state driver’s license until the taxpayer satisfies their unpaid tax debt. The Department will issue a Notice of Proposed Driver’s License Suspension and give the taxpayer 60 days to respond or repay their owed taxes.

It should be easy to see how these various penalties can compound the difficulty and stress of an already challenging situation. For example, if you owe a significant amount in back taxes and have your wages garnished by the IRS or New York State Department of Taxation and Finance, you will likely have trouble managing your typical living expenses and providing for your family. While both the IRS and the New York State Department of Taxation and Finance offer some alternative options to full repayment of tax debts, navigating these options can be difficult without the assistance of an experienced New York tax attorney.

Options for Tax Relief in New York

When you are facing severe penalties for unpaid taxes at the state or federal level in New York, it’s possible to overcome the situation without experiencing total financial ruin. If you are worried about the IRS or New York State Department of Taxation and Finance seizing your home, your car, and your other assets, or garnishing your wages for years to come, meet with a New York tax lawyer to discuss your available options for tax relief.

Whether you owe federal income taxes, state taxes, or both, your attorney will perform a thorough review of your financial situation and your tax payment record. The attorney should also assess your communications with the IRS and New York State Department of Taxation and Finance. Some of the potential options you might have for tax relief in New York include:

  • Offer in Compromise. An Offer in Compromise is a formal legal motion that may allow a taxpayer to satisfy their tax debt and prevent future adverse actions for less than they actually owe. Qualifying for and constructing an Offer in Compromise requires help from an experienced tax attorney.

  • Installment Agreement. If you are unable to pay your tax debt in full, it’s possible to negotiate a long-term repayment plan with the IRS or the New York State Department of Taxation and Finance. Depending on the amount you owe, this may last for several years, but it is typically a preferable alternative to a massive lump sum repayment of owed taxes.

  • Filing for deadline extension. In the event you will be able to repay your tax debt in the near future but after the deadline listed in the Notice and Demand for Payment you received, your attorney can help you file for an extension to this deadline to give you the flexibility you need.

  • Applying for “Currently Not Collectible” status. If you cannot repay your tax debt due to your current financial situation, your attorney can help you qualify for Currently Not Collectible status. This status halts further collection actions from the IRS or New York State Department of Taxation and Finance until your financial situation changes for the better and you have the flexibility to repay your taxes.

These options are available but are very difficult to navigate and secure without the help of an experienced New York tax lawyer. If you are ready to start exploring your options for tax relief, Delia Law can help. Attorney Dawn Delia has handled many tax relief cases for clients in New York, and our team can help with your case. Contact us today to schedule a consultation and learn more about your tax relief options in New York.


New York-Specific Tax Laws

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