The IRS has recently sent a “Notice of Possible Income Underreporting” to thousands of small businesses asking them to review and confirm that they correctly reported their income on last year’s tax returns. Almost 20,000 businesses throughout the country have received the letter.
If you are an individual or business located in one of the five boroughs of New York City and are experiencing IRS tax problems don’t wait any longer to find back taxes help.
Earlier this year we were notified by the New York State Department of Taxation and Finance Bureau of Conciliation and Mediation Services that our clients were not “Responsible Persons” for NYS Sales Tax purposes and were not liable for a $320,000 sales tax assessment.
The constitutionality of the MCTMT has been challenged in a series of lawsuits. In all but one of these lawsuits in which there has been a decision, the MCTMT has been ruled to be constitutional and the legal challenges have been dismissed. In one of the challenges, a Nassau County Supreme Court justice recently found the MCTMT to be unconstitutionally enacted.
If you are an employee or officer of a company that is required to collect and remit sales and use tax and fail to do so, you may be personally liable to pay the outstanding tax along with penalties and interest. The NYS Department of Taxation and Finance (“Department”) may consider you to be a “responsible person” if:
Governor Cuomo announced a new initiative yesterday meant to encourage individuals who owe significant back taxes to pay their bills. Under the program, a New York State driver license can be suspended when a taxpayer’s back tax liability exceeds $10,000. The crackdown is the result of legislation introduced as part of the Executive Budget and signed into law earlier this year.
The NYS Tax Department is now authorized to establish a program to collect past-due NYS taxes by suspending eligibility for STAR (school tax relief) exemptions.
IRS Notice CP 2000 is referred to as the Notice of Proposed Adjustment for Underpayment/Overpayment and is among the most common notices sent out by the IRS.
The IRS compares the information reported by employers, banks, businesses and other payers on forms W-2, 1098, 1099, etc., with income and deductions reported on your income tax return. If you failed to report any income, payments, and/or credits (or if you overstated certain deductions) on an income tax return, you may receive a Notice CP-2000.
If you do not satisfy your full tax liability or negotiate an installment payment agreement, or if an offer in compromise is under review, withdrawn, or rejected, New York State may use any or all of the following activities to collect your tax liability.
Tax warrant
A tax warrant may be filed against you. A warrant is the equivalent of a legal judgment against you and creates a lien against your real and personal property when filed. The warrant is a public record, on file at your County Clerk’s office and with the Secretary of State. It publicly acknowledges that you owe New York State taxes and may adversely affect your credit rating. It may make it difficult for you to get a loan or buy or sell real property. A warrant remains on file with the County Clerk and the Secretary of State until the tax liability is satisfied or the warrant expires.
The New York State Department of Taxation and Finance has instituted new reform measures that will improve tax administration on behalf of taxpayers statewide. New eligibility consideration for severe economic hardship will allow the Department to offer more favorable payment terms to taxpayers with overwhelming tax liabilities. The new eligibility factors will be added to the Department’s existing liability settlement program known as the Offer in Compromise Program.
