Taxpayers, not only in New York but all across the country, may fail to file their annual returns for various reasons. You may have personal problems or business failure and cannot afford to pay your tax liabilities. This may frighten you to even file your tax return. Whether you fail to file for fail to pay, your tax liabilities keep growing just to overburden you. Hence, it is best to find one of the IRS tax debt relief option before it is too late.
What are the help available in New York for Your Tax debt?
You have many options to relief or resolve your New York tax debt relief. It includes Offer in Compromise, Instalment Agreement, and Currently Not Collectible Status. If you do not qualify for any of the mentioned relief options, still for taxpayer without having any penalties due in last three years, does new york state have a first time penalty abatement to help you.
Under FTA, you can request penal abatement only once in your lifetime. You can also file for Chapter 7 bankruptcy to wipe out your tax debts in New York. Unlike other IRS 10 years of limitations, you have statute of limitations of 20 years in New York to pay back your tax liabilities. A penalty abatement in New York means that your failure to pay or file your tax on time was due to reasonable cause and not a wilful negligence.
What if you do nothing to settle your IRS tax debts?
The New York State Tax Department will assign your case to individual collectors if you eventually do nothing about settlement of your tax liabilities. Also, the state may issue a levy on your bank account, hold back your tax refunds, or garnish your wages.
The following income or funds are exempted from garnishment and levy –
- Social Security and supplemental security income
- Child support
- Unemployment or disability payments
- Worker’s compensation benefits
- Public and Private Pensions