Last Updated on 05/13/2024 by Christian Collins
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.
Economic Hardship
(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.
Tax Compliance
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.
Conclusion
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
Frequently Asked Questions:
What is an Offer in Compromise?
An Offer in Compromise is a program offered by the New York State Department of Taxation and Finance (DTF) to help taxpayers settle their tax debt for less than the full amount owed. It allows eligible individuals to negotiate with the DTF to resolve their tax liabilities.
How does the NYS Offer in Compromise Program work?
The NYS Offer in Compromise Program allows taxpayers facing financial hardship to propose an offer amount to the DTF, which, if accepted, will settle their tax liabilities. The process involves detailed documentation and eligibility requirements that need to be met.
Who is eligible to apply for the NYS Offer in Compromise?
To be eligible for the New York State Offer in Compromise Program, taxpayers must demonstrate undue economic hardship and an inability to pay their tax debt in full. It is crucial to consult with a tax attorney to evaluate eligibility and navigate the application process.
What are the benefits of participating in the NYS Offer in Compromise Program?
By participating in the NYS Offer in Compromise Program, taxpayers can resolve their tax issues with the DTF and potentially reduce their tax liabilities while avoiding more severe collection actions. The program offers a path to financial recovery for those facing tax problems.
How can I apply for an Offer in Compromise in New York State?
To apply for an Offer in Compromise in New York State, you need to submit a detailed offer amount along with supporting documentation to the DTF. Working with a tax professional can help ensure that your offer is prepared correctly and maximizes your chances of acceptance.
What happens if my Offer in Compromise is accepted by the DTF?
If your Offer in Compromise is accepted by the Department of Taxation and Finance, you will need to fulfill the terms of the agreement, including making payments as specified. Once the accepted offer is completed, your tax liabilities will be considered fixed and final.
Can a taxpayer contact us for assistance with the NYS Offer in Compromise Program?
Yes, taxpayers facing tax problems can reach out to a tax attorney or tax professional for guidance on the offer in compromise process and to discuss their tax debt for less options.
What is Doubt as to Liability in the Offer in Compromise process?
Doubt as to liability is one of the grounds for which a taxpayer can apply for an Offer in Compromise, indicating a genuine dispute exists regarding the tax amount owed to the New York State.