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If you owe taxes to the New York State, you may qualify for an NYS Offer in Compromise (OIC). Thats where the state allows you to clear your taxes owed for less than you owe. Both businesses and individuals can apply. It is a great option if you cant afford monthly payments on an Installment Payment Agreement.
If you have an unpaid tax balance and are unable to pay basic living expenses, you may qualify for one of the IRS hardship payment alternatives. To figure out if you qualify, the IRS will require that you provide detailed financial information by completing a Form 433-F or 433-A, Collection Information Statement.
For example, lets say John owes the IRS $40,000 in back taxes. He cant pay it. To make an offer in compromise, he files IRS Form 656-B and Form 433-A, and he remits the application fee and initial payment to the IRS. The IRS evaluates the forms, as well as Johns income, assets, expenses, and ability to pay.
The Offer in Compromise program allows qualifying, financially distressed taxpayers the opportunity to put overwhelming tax liabilities behind them by paying a reasonable portion of their tax debt. We can consider offers in compromise from: individuals and businesses that are insolvent or discharged in bankruptcy, and.
Request an installment payment agreement (IPA) If you cant pay your tax bills in full, request an IPA. If you qualify, youll make monthly payments toward your unpaid balance.
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People also ask

So What is the NYS Tax Warrant Statute of Limitations? 20 years. The State of New York has 20 years from the date a warrant could have been filed to collect on a tax debt. This is double the ten years given for the IRS Collection Statute Expiration Date.
New York State Hardship Status: Temporary Relief Hardship status is a form of NYS tax debt relief. The State agrees you are too broke to pay the bill, but for some reason, they will not accept an Offer in Compromise. Most people that would qualify for hardship also qualify for an Offer in Compromise.
NYS Offer In Compromise: Qualifications, Details, and How to Apply. If you owe taxes to the New York State, you may qualify for an NYS Offer in Compromise (OIC). Thats where the state allows you to clear your taxes owed for less than you owe.

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