Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

New York state put a tax lien on my home. When the home was

New York state put a...
New York state put a tax lien on my home. When the home was sold they collected on the lien. It turns out that no taxes were actually owed and that I suffered a capital loss. How do I go about recouping the money they incorrectly took?
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 hour by:
5/12/2011
Zip Taxes
Zip Taxes, Tax Preparer
Category: Tax
Satisfied Customers: 156
Experience: CTEC Licensed / Mgmt Experience with H & R Block... Self Employed since 1986 Experienced in all Scheds
Verified

Zip Taxes :

Welcome to Just Answers, I will do my best to Answer your Question.

Zip Taxes :

You must prove (you have the burden of proof) that you didn't owe the money or the money was paid. You must contact the agency that liened the property. Give them a certified letter of notice of the issue. They have to listen to you providing not too much time has passed... But clearly, how ever proof you have, cancelled checks, processed tax returns, how ever you have it documented, get them on the phone and find out how to remedy the issue. If you have to file a claim against them, find out the who and where and the proper form to file.

Zip Taxes :

When dealing with a governmental agency, it can get dicey and you want to be very clear as to their instructions.

Zip Taxes :

Please let me know if you need further assistance.

Customer:

NYS Department of Taxation-Tax Compliance filed the lien on October 27, 2004 for taxes owed for 1998 and 1999 in the amount of $81,732.21. The IRS also filed a lien on February 9, 2006 in the amount of $625,249.00. After filing the federal returns the IRS released the lien as there were no capital gains. At that time we believed that NYS had also released the lien because of information provided to us by a representative of the Tax Advocate Service, however, this information was not in writing and we have no proof of it. When we closed on the property on August 21, 2007 the sale price was to be $922,000.00 but due to an accounting error on the part of the seller's attorney that went unrecognized by our attorney until August 23, 2007 we were still owed $20,570.75. All monies remained in escrow through a lengthy legal battle which we won in 2008. At that time NYS took there money off the top and the rest of the money was released.

Customer:

When I send the certified letter to NYS Department of Taxation should I include all of the documentation at that time or just the letter stating this information and was for instructions as to where to send the paperwork?

Zip Taxes :

I would send all of the copied documentation.

Zip Taxes :

If you have an attorney, you should "CC" your attorney "just for the record" of the isse

Zip Taxes :

issue

Zip Taxes :

Also note on the bottom of your letter that you are CC the information to the attorney so they know "other" people will be involved.

Zip Taxes :

Hang in there for one min... I want to re-read your statement

Customer:

Okay, thank you for your help I will do so. Do you know the statute of limitations since the 1998 and 1999 state returns were apparently never filed?

Zip Taxes :

Well the statues do vary from state to state and the IRS as well, but usually when it comes to the state or IRS collecting on back taxes, there is no statute, but when it comes the them owing us money, it's 3 years

Zip Taxes :

furthermore

Zip Taxes :

But, if they taken money that shouldn't have, then sometimes the statute doesn't began until you discovered the error

Zip Taxes :

still reading..................

Zip Taxes :

Did you file the State along with the Federal back in 2006 or when the IRS release their lien?

Customer:

NO

Zip Taxes :

Ok...

Customer:

The tax advocate advisor said "Well NYS should release you of all liens now as well" when the IRS released the lien. However, she failed to explain that we had to go through the same process with NYS. I know we should have realized but we were ignorant and just relieved.

Zip Taxes :

The state, in my opinion needs to be filed along with the Fed. If nothing was filed with the state unless an amendment is needed

Customer:

I also just found out that that money could have ever been recouped. I thought once they took it in that manner, that was that.

Zip Taxes :

I think, you need to file the state, but also provide the Federal Release and any additional paperwork to support your issue.

Customer:

Ok. I have all of that information and I will contact my attorney to walk us through this. I was hoping to avoid the legal fees that will greatly reduce any reimbursement but hopefully it will ensure a better chance at getting anything back.

Customer:

Thank you for your help at least I have a jumping off point now. I will include a tip with payment.

Zip Taxes :

true... so true

Zip Taxes :

thank you so much

Zip Taxes :

i wish the very best

Zip Taxes
Zip Taxes, Tax Preparer
Category: Tax
Satisfied Customers: 156
Experience: CTEC Licensed / Mgmt Experience with H & R Block... Self Employed since 1986 Experienced in all Scheds
Verified
Zip Taxes and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Zip Taxes Your Own Question
Zip Taxes
Zip Taxes
Zip Taxes, Tax Preparer
Category: Tax
Satisfied Customers: 156
156 Satisfied Customers
Experience: CTEC Licensed / Mgmt Experience with H & R Block... Self Employed since 1986 Experienced in all Scheds

Zip Taxes is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I used the online version to file my 2016 tax return and I
Good morning I used the online version to file my 2016 tax return and I am not sure how I missed filing my wife's return. I now need to file a return for her and would like to know if I can add her to… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I LIVE IN OKLAHOMA AND MY STATE TAX RETURN IS FOR 10,843.00
I LIVE IN OKLAHOMA AND MY STATE TAX RETURN IS FOR 10,843.00 REFUND OTC TOLD ME THEY WILL NOT PROCESS UNTIL I GIVE THEM A ORIGINAL W-2 COPY AND PROFF THAT IRS ACCEPTED MY RETURN? WHY IS THIS SHOULD I B… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I received a Request for Tax Return letter from the
I received a Request for Tax Return letter from the California Franchise Tax Board which states the following (and I quote) "We received information from Waco Title Company Fort Smith indicating that … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Lev, I am preparing federal unfiled tax returns for a client
Good morning Lev, I am preparing federal unfiled tax returns for a client of mine. I am also ready to finalize the 2014 tax return and there is an NOL created on his return. The client has already fil… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a tax lien from the state of Iowa. It concerns the
I have a tax lien from the state of Iowa. It concerns the years 2005, 2006, 2007. When I asked them for "proof" that I owed them, they said that records that far back are no longer available. (They ch… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
For a ny state partnership tax return, if you file an
For a ny state partnership tax return, if you file an extension but don't pay anything and then end up owing a lot. Do they still recognize the extension or do they charge a failure to pay penalty (fo… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
IRS Experts Corporation changed name. 2016 tax return has
IRS ExpertsCorporation changed name. 2016 tax return has been filed with a new name. Taxpayer recently received notice which has old name. How do we change the name with IRS?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Are you familiar with Capital Gain taxes on rental property?
Are you familiar with Capital Gain taxes on rental property? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I filed for an extension to file my 2017 income tax return.
I filed for an extension to file my 2017 income tax return. I recently suffered a stroke - 6 weeks ago - and have been unable to finalize my return. I should be able to file it within the next 30 days… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I filed an extension for 2013 tax return but no actual tax
i filed an extension for 2013 tax return but no actual tax return. Do I have until Oct. 15, 2017 to file for refund?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I file 2011 tx return and de state tax return i permit
hi i file 2011 fred tx return and de state tax return i permit address is de … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I recently filed amended federal tax returns (1040x) for
I recently filed amended federal tax returns (1040x) for 2013 and 2014. I have received a refund for 2014 and am answering some additional questions for 2013. Do I need to file amended tax returns for… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Is there a statute of limitation for sales tax in ohio?
Is there a statute of limitation for sales tax in ohio? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Capital Gain - A taxpayer has capital loss (short term and
Capital Gain -A taxpayer has capital loss (short term and long term) carryover from stock sales. He also has loss carryover from rental property.When he sales the rental property, all the rental loss … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My 2016 tax return was denied electronially by the IRS. The
My 2016 tax return was denied electronially by the IRS. The social security number for the child I listed as a dependant had alredy been used by another party. I was instructed to send in a paper return and wait for notification. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My accountant filed my tax return late(electronic filing). I
my accountant filed my tax return late(electronic filing). I was told by him that it was filed correctly. Can I sue him for the IRS penalty? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
TAX: Is there a statute of limitations for filing tax
TAX: Is there a statute of limitations for filing tax returns? Taxpayer has not filed since 2005 and wants to file 2006 - 2014. 2015 and 2016 are filed.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x