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Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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I owe NYS tax from 2008 with interet and penalty. I never

Customer Question

I owe NYS tax from 2008 with interet and penalty. I never filed a return for that year. I have filed every other year. I owe 9800 with interest and penalty. The tax was about 4400 when they sent it to me. I sthere a way to eliminate penalty and interest and then pay the tax off
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Customer: dont think so
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Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

Q: I sthere a way to eliminate penalty and interest and then pay the tax off

A: Unfortunately, as you did not file a return for that year, it is likely that an abatement of the penalties and interest will not be granted. In order to obtain an abatement of the penalties and interest, you would need to have a reasonable cause. A reason that is considered reasonable cause to the taxing agency, not yourself. SEE BELOW:

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20 NYCRR § 536.1(c), entitled “Penalties and interest,” provides for waiver of penalties if a taxpayer’s failure to pay “was due to reasonable cause and not due to willful neglect. 20 NYCRR § 2392.1(g) provides that a taxpayer has acted with reasonable cause when he has acted in reliance on “professional advice… provided such reliance was reasonable and the taxpayer had no knowledge of circumstances which should have put the taxpayer upon inquiry as to whether such [advice was] erroneous.” According to 20 NYCRR § 2392.1(g), circumstances that indicate reasonable cause also include “an honest misunderstanding of fact or law that is reasonable in light of the experience, knowledge and education of the taxpayer. In addition to the specific examples of reasonable cause provided in 20 NYCRR § 2392.1(g), 20 NYCRR § 2392.1(d)(5) provides a general test. 20 NYCRR § 2392.1(d)(5) provides the following general test for determining whether the failure of a taxpayer to pay sales tax was due to reasonable cause: “Any other ground for delinquency which would appear to a person of ordinary prudence and intelligence as a reasonable cause for delay and which clearly indicates an absence of willful neglect may be determined to be a reasonable cause.” Finally, 20 NYCRR § 2392.1(b) provides that a taxpayer’s past compliance with the Tax Law is probative of whether his failure to pay a sales tax liability was due to reasonable cause: “In determining whether reasonable cause exists, in addition to an evaluation of [other] facts, the taxpayer’s previous compliance record with respect to all of the taxes imposed pursuant to the Tax Law may be taken into account.”

REFERENCE SOURCE:

http://nytaxattorney.com/2012/08/15/legal-basis-for-seeking-abatement-of-new-york-state-tax-penalties/

Let me know if I can be of further assistance to you regarding this matter.

Customer: replied 1 year ago.
Since I may not a valid reason under these laws do they consider medical hardships as I have a son finishing up leukemia treatment and have many bills. Also if nys cares about none of this will they accept a payment plan?
Expert:  Tax.appeal.168 replied 1 year ago.

As taxing agencies handle these matters on a case by case basis, a serious medical hardship may qualify as a reasonable cause. If they do no accept the medical hardship as a reasonable cause, you can request to be placed on an installment agreement. SEE BELOW:

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We base the decision to allow an IPA on a thorough review of:

  • prior history of compliance,
  • current financial condition, and
  • adherence to all Department requirements

To make your request:

  • Log in to your Online Services account (or create an account if you don't already have one), select Payments, bills and notices, and then Request an installment payment agreement; or
  • Have a copy of your bill and call(###) ###-#### ***** your taxpayer ID number, and enter the four-digit PIN provided on your billing notice

REFERENCE SOURCE:

https://www.tax.ny.gov/pay/all/ipa.htm