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4 Ways to Repay New York Back Taxes

July 24, 2017

Whether it’s federal or state, it’s never good news to find out you owe taxes. In many cases, we aren’t prepared to pay what we owe in full and just don’t have the kind of money on hand that you need to pay back taxes. Thankfully, if you owe New York back taxes, you have a number of options that might help make paying those back taxes a little more convenient (and less painful).

Payment Plans & New York Back Taxes

For most tax debt, the state will work with you on a payment plan that fits your budget and reduces your tax obligation. It’s important when setting up your payment plan that you consider your other expenses so that you are able to keep up with your payments. Don’t make the mistake of agreeing to make payments that you cannot afford.

Installment Agreements

You can set up an installment agreement with the state to repay your tax debt. However, you will first need to apply for an Installment Payment Agreement. Whether or not your agreement will be approved is based on factors such as the following:

  • Whether you have complied in the past
  • Your current financial condition
  • Adherence to department requirements

If your agreement is not approved, the tax department will likely begin the civil enforcement process and pursue collection of the debt.

Offers in Compromise

You can also repay your New York back taxes by submitting an Offer in Compromise (OIC). In a previous article, we’ve detailed exactly how to make a New York Offer in Compromise.  This process allows you to pay less than the full amount you owe, and is backed by documentation and persuasive arguments. If your Offer in Compromise is accepted by the state, the amount of back taxes you owe will be reduced. Afterward, it is important that you remain in compliance of all tax laws for five years. If you fail to file or pay taxes, you could default on the Offer in Compromise and then be held responsible for the full balance.

Negotiate a Reduced Payment

Another option for paying back taxes in New York is negotiating a reduced payment. While similar to setting up an installment agreement and applying for an Offer in Compromise, this method actually reduces the payment you already make. If you successfully negotiate a reduced payment, it could mean making payments longer, but each payment may be more affordable.

Mackay, Caswell & Callahan: NYC Tax Attorney

If you’re finding it difficult to determine the best way to pay your back taxes, we can help. Let us help you determine the best option for your situation and get you back on track.  A NYC tax attorney at Mackay, Caswell & Callahan, P.C. has the experience you need on your side.  If you owe New York back taxes or need assistance resolving any tax issues, contact our attorneys for a consultation by completing our online contact form or calling 844-MCC-4TAX (622-4829). An experienced tax lawyer from one of our offices in Albany, New York City, Rochester, Syracuse, Utica, and Watertown can help.

Comments

A Practical Guide to Filing NYC Tax Returns | New York Tax Attorney 5 years ago

[…] to outstanding New York City tax debt.  We can walk you through the steps on how to address outstanding New York tax debt.  If a New York Offer in Compromise is the right answer for you, we can help with that, too.  […]

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Comments

A Practical Guide to Filing NYC Tax Returns | New York Tax Attorney 5 years ago

[…] to outstanding New York City tax debt.  We can walk you through the steps on how to address outstanding New York tax debt.  If a New York Offer in Compromise is the right answer for you, we can help with that, too.  […]

Leave a comment

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