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StevenMcGrathCPA
StevenMcGrathCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 39
Experience:  12+ years of state tax experience, MST, CPA
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hi i live in mass and i just had a tax levy on my bank account

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hi i live in mass and i just had a tax levy on my bank account for unpaid sales tax in NY. I had a small retail store in nyc for two years from 1992-1994 and went out of business without properly closing my documents. I paid all my taxes on time except for the last two quarters when I was loosing the business. They kept estimating my sales tax and when I called I was told I owed $155,000 During the call I was able to narrow the time down to the months I actually owed tax for and fortunately I still have the register receipts. He calculated my original amount due of $2005 with fees and interest is now $16000. I was willing to pay if I could workout a payment plan but he told me he could not do this and I had to send the money in asap He also would not send me any written docs that I could sign for an agreement. He had my current contact info and address and in 16 years I never received any request to pay. What do I do. I want to settle this. Is there any way I can file to appeal
Submitted: 4 years ago.
Category: Tax
Expert:  StevenMcGrathCPA replied 4 years ago.

Hi There,

 

It sounds like you are stuck working with a "tough guy" from the collections dept. right now. Fortunately, you do have some options.

 

First, you may be eligible for an "offer in compromise". This is essentially a program where you make a reasonable offer to the Dept. in order to resolve the open liability. If handled properly, it is a win-win for both parties: The Dept. collects some revenue and the taxpayer clears the liability. Your first step for this route is to review the following publication to see if your facts and circumstances meet the requirements for the program. you can find this information here:

 

http://www.tax.state.ny.us/pdf/publications/multi/pub220_1108.pdf

 

As you mentioned, it appears that you have some documentation in the form of register receipts which you can use as support to lower your liability from the estimated $155K. Such documentation is vital to negotiating a reduction with the Dept. In addition, you may want to consider requesting an abatement of the penalty charges assessed due to reasonable cause. In many cases, taxpayers without any prior issues can easily receive a waiver of said penalty.

 

In addition, contrary to what the collections representative said, you do have some rights, including rights to payment via an installment plan. You can find information on your rights and installment payment plans here:

 

http://www.tax.state.ny.us/pdf/publications/multi/pub38_806.pdf

 

http://www.tax.state.ny.us/pdf/publications/general/pub125_1002.pdf

 

Based on the information you have provided, it appears that you want to work with the Dept. to get this issue resolved. This is an excellent first step in reaching a resolution with the Dept. As detailed in the above publications, you do have options to do so in a fair and efficient manner. Your best bet at this point it to review the above information and let your contact know you are aware of your rights. At that point, he/she should either work with you to reach a settlement plan or put you in touch with the proper individuals. If he/she is unwilling to do so, there is contact information for the appropriate depts. in the aforementioned links,

 

I hope this information was useful. If it was, your feedback is greatly appreciated.

 

Best Regards,

 

Steve

 

 

StevenMcGrathCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 39
Experience: 12+ years of state tax experience, MST, CPA
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StevenMcGrathCPA
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