Penalty Abatement in New York City

& Finding a Penalty Abatement Lawyer

When it comes to taxes, most people are looking for ways to save money. One way to do this is through penalty abatement. Penalty abatement is when the Internal Revenue Service (IRS) agrees to waive or reduce penalties assessed on a taxpayer. There are a few different ways a taxpayer can qualify for penalty abatement, such as showing that they made a good faith effort to comply with the tax laws or that the penalties would cause financial hardship. 

If you are in New York and think you may be eligible for penalty abatement, it’s important to reach out to a local tax attorney who can help you navigate the process. While there’s no guarantee you will be able to get the penalties reduced or waived, it’s worth exploring if you’re looking for ways to save on your taxes.

How Do I Apply for Penalty Abatement, and What Documents Do I Need to Provide to the IRS?

When it comes to tax penalties, there are a few different options available for abatement. The first option is to file an amendment to your return if you believe that you originally filed incorrectly and owe less in taxes as a result. You will need to include a detailed explanation of the changes you request and any supporting documentation. If you cannot pay the total amount of taxes owed, you may be able to request a payment plan from the IRS. This typically involves setting up automatic monthly payments until the debt is paid off. 

In some cases, the IRS may also agree to waive certain penalties or interest charges. If you believe you have certain extenuating circumstances, such as a natural disaster or serious illness, you can request penalty abatement on these grounds. You will need to submit documentation such as insurance records or hospital bills to support your claim.

What Are the Consequences of Not Paying My Taxes on Time or Not Applying for Penalty Abatement When I Am Eligible to Do So?

If you don’t pay your New York taxes on time or apply for penalty abatement when you’re eligible, you could face some pretty serious consequences. The most immediate one is that you’ll be charged interest on the amount you owe. That interest accumulates quickly, and before you know it, you could be owing much more than you originally did. In addition, the IRS could also file a notice of federal tax lien, which publicly declares that you owe money to the government. This could affect your ability to get loans or buy property in the future. Finally, the IRS could garnish your wages or take other collection actions if you still don’t pay what you owe. It’s definitely in your best interest to stay on top of your taxes and avoid these penalties.

What Is the Process for Appealing a Decision Made by the IRS Regarding Penalty Abatement Eligibility or Application Status?

The first step in appealing an IRS decision is to file a petition with the United States Tax Court within 90 days of the notice of deficiency being issued. This can be done by mail or in person, and it must include a statement of the taxpayer’s case, as well as a statement of facts and grounds for appeal. Once the petition has been filed, the Tax Court will set a date for a hearing, at which both sides will have an opportunity to present their arguments. If the Tax Court rules in favor of the taxpayer, the IRS will be required to abate any penalties that have been assessed. If the court rules against the taxpayer, however, they will be responsible for paying any outstanding taxes, plus interest and penalties. In either case, it is important to seek professional help when appealing an IRS decision, as the process can be complex and confusing.

Delia Law Can Help With Penalty Abatement in New York

IRS penalties and interest can quickly add up, leaving taxpayers owing thousands of dollars. This can be a difficult financial burden to bear, especially if you’re already struggling to make ends meet. Fortunately, options are available for those unable to pay their full tax liability. Delia Law can help you explore your options and determine if you qualify for penalty abatement.

There are several different types of penalty abatement, and each has specific eligibility requirements. Delia Law can help you navigate the complex rules and regulations surrounding penalty abatement and ensure you take advantage of every opportunity to reduce your tax liability. We have already helped many taxpayers in New York successfully reduce their penalties through the use of penalty abatement, and we can leverage the same best practices and strategies to help you as well. If you are struggling to pay your New York taxes, don’t wait until it’s too late to seek help. Contact Delia Law today to learn more about how we can help you with penalty abatement.

New York-Specific Tax Laws


New York residents are required to pay taxes on income that was earned as well as for federal taxes. In fact, some people who don’t even live in New York must pay state taxes. If you lived elsewhere but acquired the money through a source in New York, you must pay state taxes on that income.

There are four main types of taxes in New York:

  • State income tax. New York State has a graduated income state tax, which means your tax rate increases as your income increases. The state’s tax rates range from 4% to 10.90%. For example, if you make under $8,500 annually, you will only be subjected to a 4% tax rate. However, if you make $25,000,001 and over, you are now facing the higher end of the state’s tax bracket at 10.90%.
  • Local tax. The local tax is a county-specific tax, and the rates also differ based on income. For example, in Tompkins County, the local tax rate is 4%. In contrast, in Suffolk County, the rate is 4.25%. The variation in local tax rates can make a significant difference in the overall amount of taxes you owe.
  • City tax. City taxes are only applicable to those who live or have earned money in New York City. This applies to individuals, trusts, estates, partnerships, S-corporations, and corporations. The city tax rate is 3.078%, 3.762%, 3,819%, and 3.876% depending on the bracket your income qualifies for.
  • Corporate tax. If you are a business owner, you are also required to pay corporate income tax. The tax rate on your corporate income ranges from 6.50% to 7.25%. These taxes generated from businesses is one of the main sources of revenue for the state of New York, and it helps to fund many of the state’s programs and services that benefit its residents.
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