What is NYS Tax Offer In Compromise?
The NYS Tax Offer In Compromise program is a beacon of hope for taxpayers facing insurmountable state tax liabilities. This initiative by the New York State Department of Taxation and Finance (NYSDTF) offers relief for individuals and businesses dealing with overwhelming tax debt. Under the program NY state may agree to settle your NY state tax debt for less then the full amount owed. Property tax issues are excluded. Too good to be True? Lets dive in to the what it takes to get an offer accepted, and how to stay compliant.
NYS Offer in Compromise can be sought for following reasons:
Doubt as to Liability
If you believe there’s a genuine doubt as to whether you are liable for the assessed tax debt, the NYS Offer In Compromise program can provide a resolution. This aspect of the program allows you to challenge the back tax liability itself.
Doubt as to Collectability
In situations where paying your tax debt in full would result in undue economic hardship, you can turn to the program for assistance. This option offers relief for those who may not have the financial means to settle their tax obligations outright.
Eligibility Requirements for New York State Tax Offer In Compromise
While the NYS Tax Offer In Compromise program can provide much-needed relief, it’s important to understand the eligibility criteria set by the state. Our Team of Tax Professionals, CPA’s, Enrolled Agents, Tax Preparers, and Tax Attorneys offer Guidance for both IRS Offer in Compromise or NYS tax OIC program. To qualify for this program, you must meet the following conditions:
Bankruptcy or Insolvency:
The taxpayer must be bankrupt or insolvent. This condition recognizes that financial hardships come in various forms, and insolvency can render a taxpayer unable to meet their tax obligations.
(Applies to Individuals Only): For individual taxpayers, paying their tax debt in full must create undue economic hardship. This criterion takes into account an individual’s financial situation and aims to provide relief for those genuinely struggling.
The taxpayer must be compliant with all tax issues for previous and current years. This includes filing all required tax returns and staying current with ongoing tax obligations.
New York State Offer in Compromise Compliance Terms
The offer must not undermine the state’s terms for compliance. This ensures that the taxpayer is committed to adhering to the state’s tax requirements in the future.
Terms and Conditions Outlined on New York State DTF Website
"These terms and conditions include, but are not limited to, your agreement to:
- fully comply with all tax laws, including filing returns and paying tax when required, for the next five years
- allow the department to apply any payments you make, including toward your accepted offer, toward any of your liabilities, in any order (unless otherwise specified in writing)
- allow the department to apply your tax refunds, credits, or funds eligible for offset (such as lottery offsets and unclaimed funds)—for periods before and including the calendar year in which we accept your offer—to the original outstanding liability
Note: We will not count these payments toward your accepted offer amount. If these payments satisfy the original liability, we will refund any excess.
- waive your right to contest the amount of the liability being compromised
- meet all obligations under your compromise agreement and any collateral agreements otherwise, we will not compromise the debt in question
- waive any statute–of–limitations defenses against the assessment and collection of the liability being compromised
Note: If you fail to comply with the terms of the offer, you also waive any statute–of–limitations defenses against the issuance of new assessments for the compromised liability.
- forfeit any current capital loss or net operating loss credits on any future New York State tax returns"
*Source: New York State Department of Taxation and Finance. Retrieved September 13, 2023, from https://www.tax.ny.gov/enforcement/collections/oic-terms.htm
First Offer or Higher Offer
The offer submitted must either be the first offer for that specific tax liability or a higher offer than the original offer. This condition prevents misuse of the program and encourages genuine requests for relief.
When tax liabilities cast a shadow over your financial well-being, the New York department of taxation Offer In Compromise program offers a ray of hope. When coupled with the expertise of Priority Tax Relief, the path to financial recovery becomes clear and attainable.
Remember, you don’t have to face your tax challenges alone. Reach out to Priority Tax Relief today and take the first step towards a brighter financial future. With our assistance, you can unlock the door to financial freedom and leave your ny tax problem behind. Don’t wait; your fresh start begins now! Contact Us Here or Call us At 888-708-2872