Dealing with the Internal Revenue Service is often nerve-wracking. Even if taxpayers do their best to file their taxes correctly, they may still worry about making mistakes and facing the wrath of the IRS. In some cases, New York residents may end up facing collections from the IRS for unpaid taxes.
Financial issues can have far-reaching effects, and any New York resident could feel those effects in various areas of his or her life. Money problems can cause mental and physical health concerns, and when individuals are facing tax collection on top of their other debt issues, they may feel even more overwhelmed. Fortunately, some people may be able to take advantage of assistance with collection efforts.
Paying taxes seems like a burden to most New York residents and those around the country. Though people may grumble at the amount withheld from their paychecks, they may feel relieved when they receive a refund. Unfortunately, everyone is not lucky enough to obtain a refund, and some may owe significant amounts. This type of ordeal can be difficult for some people, and they may face collections for tax debt.
Owing taxes is fairly commonplace for residents in New York and elsewhere. While many individuals and families prepare for paying taxes each year, for some, this can be extremely burdensome for those struggling financially. Not paying taxes due could result in penalties and could initiate the collection process. However, many are not aware of what this process entails and what options they might have.
The New Year brings many things, one of which is the delivery of tax documentation for individuals and businesses. While this is commonplace for many in New York and elsewhere, for some, it can be challenging to consider the next filing year when one has not made payment on a previous tax year. Whether one is delinquent in paying taxes or is seeking to obtain an extension, it is important that individuals and business owners understand their options to avoid tax collection.
According to reports, the State of New York is facing a budget gap of over $6 billion in 2020. With the New York legislature disinclined to cut benefits, especially healthcare benefits, the deficit has led to talk of higher taxes.
The IRS is well-known for aggressively pursuing taxpayers whom the agency has determined owe additional taxes. This is especially true when the IRS feels that the taxpayer was less than forthcoming about their income or deductions or, in its view, tried to game the system. It comes as no surprise then that the IRS will, if possible, pursue both the taxpayer and the taxpayer's spouse if it is able to do so.
Like other states, New York imposes a tax on the sale of certain retail goods and services. Also like other states, the law allows cities and other local governments within New York to impose their own additional sales taxes.
Our law office has previously discussed how New Yorkers who wind up owing the IRS back tax payments can work with the IRS in order to repay those taxes without being reduced to poverty. t is important, however, that taxpayers in and around White Plains not lose sight of the fact that state and local authorities also impose taxes on citizens. As with the federal government, the State of New York has a Department dedicated to collecting tax revenue that goes unpaid for whatever reason.
Many New Yorkers may wonder what good it would do to work out payment arrangements directly with the IRS and other taxing authorities if they are able just to file for bankruptcy protection.