TAX DEBT RELIEF OPTIONS – New York Department of Taxation and Finance

M&M Financial started fixing back tax problems nationwide in 2005, and in New York as far back as 2008.  We deal with the IRS and State, so you do not have to! 

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


The state of New York does not provide a lot of information regarding payment plan options for business or individual tax liabilities.  In our experience the terms allowed vary, but the following are standard payment plan requirements: 
  • If you owe $20,000 or less and can pay back the tax in 36 or fewer equal monthly payments, you may be able to get a payment plan online.
  • You will have to complete a financial statement form and provide supporting documentation to back up your payment plan request.
  • A tax Warrant (tax lien) will be filed against you and/or your business.
  • Expect the state to ask for a 25% - 50% down payment.
If you owe a personal tax debt of $10,000 or more to the state of New York, be sure to resolve it fast.  If you don’t, you’ll get a “60-day” letter and the next step is a suspended driver’s license.  It gets worse from there, wage garnishments, bank levies…  And, if you get stopped with a suspended license, it could mean an arrest.


Offer in Compromise

New York does have an Offer in Compromise program.  It allows qualifying, financially distressed taxpayers the opportunity to settle their total back-tax liability for a lesser amount.  According to NY-DOTF website, the state will consider Offers in Compromise from:
  • Individuals and businesses that are insolvent or discharged in bankruptcy. 
  • Individuals who are not insolvent or bankrupt when payment in full would create undue economic hardship.  (Only individuals may apply for relief based on undue economic hardship. This may include relief from business debts for which an individual is personally responsible.)
Each Offer that is submitted to the NY-DOTF is carefully analyzed and considered, but will only be accepted if it is in the best interests of the state to do so.  Get started with your New York Offer in Compromise HERE.  

Penalty Relief

Unfortunately, the NY-DOTF are sticklers when it comes to penalty relief and typically will not grant relief.  


The New York Department of Taxation and Finance has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.

page last reviewed 01/12/2024

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