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New York or the DTF has 20 years to collect tax liabilities. It is 20 years from the date the DTF could file a warrant. While the IRS has ten years to legally collect the taxes, NY State has 20 years.
New York State Department of Tax Finance (NY DTF) is the tax agency that manages and collects tax revenues to support New York State services and programs. To set up your state tax, heres how: Add your New York employees information. Set up New York State Tax Information.
How much will the IRS settle for? The IRS will typically only settle for what it deems you can feasibly pay. To determine this, it will take into account your assets (home, car, etc.), your income, your monthly expenses (rent, utilities, child care, etc.), your savings, and more.
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.
We generally approve an offer in compromise when the amount you offer represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before you submit an offer in compromise.
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The formula for this one is: (available income per month x 12) + amount of available assets based on Form 433-A(OIC) = Amount IRS will accept for an Offer In Compromise that is paid within 5 months of acceptance.
The cons include: You may not qualify. Not everyone qualifies for OIC. This method is typically best for people who have very few assets and who are low income earners.
If you plan to submit an offer in compromise on the basis that you cannot afford to pay the tax owed (as opposed to doubt as to liability or effective tax administration), then your offer amount must be greater than your reasonable collection potential (RCP).

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