Whether you are an individual taxpayer or small business owner, abiding by the many New York state tax codes, laws, and regulations can be difficult. Thankfully, there are available solutions for when you find yourself in compromising situations.
The Various Tax Problems
There are hundreds of problems that frequently necessitate tax resolution efforts. For individual taxpayers, these often include:
- Unfiled income tax returns. For independent contractors or employees that withhold their own income tax, failing to file returns is risky. If NYS discovers your failure to pay, the consequences could be devastating. In order to avoid trouble, you’ll need to file immediately. If NYS has already found you, you’ll likely need the assistance of a tax resolution specialist.
- Unpaid back taxes. While it can take months for NYS to follow up with you over unpaid back taxes, they will eventually notice. Resolving unpaid taxes requires an accurate determination of what you owe and when it was due. A tax specialist can help with this.
- Tax audits. If your listed income and deductions aren’t accurate – or at least deemed to be inaccurate – NYS may file a tax audit to examine the details of your return. A tax resolution specialist can ensure you cooperate in the appropriate manner.
- Tax warrant. In severe cases, you may find yourself slapped with a tax warrant involving wage garnishment and asset seizure. This means your tax issues are advanced and serious – and should be dealt with immediately.
For businesses, some of the most common tax issues include:
- Sales taxes. If your company fails to collect and file sales taxes, the responsible individuals can be hit with a severe sales tax penalties. This requires careful attention and could shutter your organization if rules and procedures aren’t appropriately followed.
- Inappropriate deductions. Dealing with deductions can be challenging. It’s easy to mistakenly write something off that’s disallowed or sweep things under the rug. If NYS suspects issues with your tax returns, they can file a tax audit for further examination.
Dealing with Tax Problems
When tax problems come knocking, there are right and wrong ways to deal with them. Choosing to lie, cover up, or evade the demands of NYS is certainly the wrong way. Instead, you’ll want to abide by these three rules:
Rule #1: Contact NYS
Whether you suspect something is wrong or you’ve already received a notice in the mail, contacting the appropriate parties is important. By reaching out to NYS, as opposed to hiding, you can show that you truly care about the issue and are actively working to resolve it. The revenue officer on your case will be much more willing to work with you, and your side of the story will be taken into account.
Rule #2: Understand Repayment Options
Depending on the criteria you meet and the details of your situation, you will qualify for a number of repayment options. These typically include guaranteed, partial, streamlined, and non-streamlined installment agreements that allow you to make small payments over an extended period of time. This can be a major relief for individuals or organizations that can’t afford to make a single lump sum payment. For example, say you owe $5,000 in back taxes. With a guaranteed installment agreement, you can work out terms to pay the delinquent taxes over a period of three years. This would put your minimum monthly payment around $140, as opposed to thousands upfront.
Rule #3: Find Help
Dealing with NYS can be tricky – especially when you don’t understand the many state tax laws, codes, and regulations. One of the most financially sound and cost-effective solutions you can pursue is hiring a qualified tax professional. A Certified Tax Resolution Specialist can develop a strategic plan and provide representation on your behalf. Being honest will enable a tax specialist to uncover all the details.
NY State Tax Resolution
Death and taxes are certainties, but don’t let taxes be the death of your personal finances or business. With the assistance of a tax resolution specialist, you can develop specific and tangible ways to resolve current issues and prevent future ones.
The best way to stay in line is to over-document and over-communicate everything. Creating a paper trail can help solve issues as they arise and shows NYS that you care about the integrity of the tax system. For more information on New York specific tax laws, please visit The New York State Department of Taxation and Finance. Here you can file returns, make payments, check your refund status, and get answers to pressing questions.