Tax Attorney in New York
Federal IRS representation for New York individuals and businesses — audits, back taxes, liens, levies, payroll-tax disputes, and U.S. Tax Court litigation. We also coordinate with New York State Department of Taxation and Finance matters where they overlap a federal case.
Reviewed by Parham Khorsandi, Esq. — California Bar #266658. Last reviewed: .
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If you owe back taxes in New York, here is what changed in 2026
New York State now extinguishes general state tax liabilities twenty years after the first date a tax warrant could be filed, per N.Y. Tax Law § 174-b. For sales tax liabilities tied to warrants filed after April 1, 2024, the collection window shortens to ten years. The IRS retains its own ten-year federal Collection Statute Expiration Date under IRC § 6502. Two clocks, two outcomes, and one Notice of Federal Tax Lien that often surfaces both.
If you have received an IRS CP504, LT11, or a Notice of Deficiency, or if the New York State Department of Taxation and Finance has docketed a tax warrant against you in Albany County or your home county clerk, the deadline to respond is real and short. We pull your IRS account transcripts, calculate your CSED, file Form 2848 Power of Attorney with the IRS, and put the brakes on collection while the case is built.
Federal tax representation for New York taxpayers
Victory Tax Lawyers, LLP is a California-Bar-admitted tax-resolution law firm based in Los Angeles. Our federal practice is nationwide: the Internal Revenue Service accepts our Form 2848 Power of Attorney in every state, and the U.S. Tax Court — a single federal tribunal with jurisdiction over IRS deficiency cases — holds trial sessions in New York City, Buffalo, Albany, and Syracuse. From our Robertson Boulevard office in Los Angeles, we represent New York residents and New York-domiciled businesses in IRS audits, collection cases, Tax Court petitions, Offers in Compromise under IRC § 7122, Installment Agreements under IRC § 6159, lien discharges under IRC § 6325, levy releases under IRC § 6343, and Trust Fund Recovery Penalty defenses under IRC § 6672.
For state tax matters — New York State personal income tax, the New York City Unincorporated Business Tax administered by the NYC Department of Finance, New York State sales tax, or assessments before the New York State Division of Tax Appeals — we coordinate with locally admitted New York counsel where formal state-court representation is required. The federal layer is where most New York high-income, business-owner, and multi-state cases live, and that is where our engagement carries the load.
New York is one of the most aggressive tax-enforcement states in the country. The Department of Taxation and Finance runs sophisticated residency audits on taxpayers who claim a move out of state — Florida and Texas being the most common destinations — and demands day-count documentation, utility bills, dentist visits, and electronic toll records to defend domicile. Many of those audits sit alongside a federal IRS exam on the same return. Coordinating the two requires a strategy that protects the federal record while the state record is built.
Your tax rights as a New York taxpayer
Two parallel rights frameworks apply when you owe tax. Federal rights come from the Internal Revenue Code and IRS Publication 1, the Taxpayer Bill of Rights. State rights come from N.Y. Tax Law and the Taxpayer Rights Advocate within the New York State Department of Taxation and Finance. Knowing both is the difference between a clean resolution and a missed deadline that ends in a wage levy or a docketed tax warrant.
Right to representation
IRC § 7521(b)(2) and (c) give you the right to be represented by an attorney, CPA, or Enrolled Agent during any IRS examination or interview. Once Form 2848 is on file, the IRS must deal with us first, not you. New York mirrors this with its Power of Attorney Form POA-1 for state matters.
Right to Tax Court review
IRC § 6213(a) gives you 90 days from a Statutory Notice of Deficiency to petition the U.S. Tax Court — without paying the tax first. Miss the 90 days and the assessment becomes final. The Tax Court sits in New York City, Buffalo, Albany, and Syracuse.
Collection Due Process
IRC § 6320 (lien) and IRC § 6330 (levy) give you a 30-day window to request a CDP hearing once the IRS files a Notice of Federal Tax Lien or issues a Final Notice of Intent to Levy. A timely CDP filing halts collection and preserves judicial review.
Right to a hearing on state assessments
On a New York Notice of Determination or Notice of Deficiency, you have 90 days to file a petition with the New York State Division of Tax Appeals (DTA). The DTA assigns an Administrative Law Judge and, on exception, the case goes to the Tax Appeals Tribunal — not a court, but a quasi-judicial body whose decisions bind the Department.
Right to settle for less than owed
Federally, IRC § 7122 authorizes Offers in Compromise based on doubt as to liability, doubt as to collectibility, or effective tax administration. New York runs its own Offer in Compromise program under Form DTF-4 (not fixed and final) and DTF-4.1 (fixed and final), with similar hardship and insolvency standards.
Right to recover fees
IRC § 7430 allows recovery of administrative and litigation costs if the IRS takes a position that is not substantially justified and the taxpayer prevails. The threshold is high, but real, especially in audit reconsideration and Innocent Spouse cases under IRC § 6015.
How Victory Tax Lawyers helps New York taxpayers
Offer in Compromise under IRC § 7122
We file Form 656 with Form 433-A(OIC) or 433-B(OIC), document the Reasonable Collection Potential, and negotiate doubt-as-to-collectibility offers when collection in full is not feasible within the remaining CSED. For New York taxpayers, a federal OIC does not resolve state liability; we coordinate a parallel DTF-4 filing where the state debt is real.
Installment Agreements under IRC § 6159
Streamlined IAs (under $50,000), partial-pay IAs (IRC § 6159(d)), and full-pay agreements. We push for partial-pay structures where IRC § 6502 will extinguish the balance before payoff — the most under-used resolution path for taxpayers between $50,000 and $250,000 in federal debt.
Lien discharge, subordination, and withdrawal
When a Notice of Federal Tax Lien blocks a New York property sale or refinance, we file Form 14135 (discharge), Form 14134 (subordination), or Form 12277 (withdrawal). The IRS has documented procedures under IRC § 6325; the timing must align with the closing.
Levy release under IRC § 6343
Wage levies, bank levies, and account receivable levies. We document economic hardship under IRC § 6343(a)(1)(D) and Treasury Reg. § 301.6343-1(b)(4), and where the levy is procedurally defective, we challenge it through Collection Due Process or Appeals.
Audit defense and U.S. Tax Court litigation
Correspondence audits, office audits, and field examinations — including sensitive issues like cryptocurrency, foreign accounts under FinCEN Form 114 (FBAR), and S-corporation reasonable-compensation. If the audit closes unfavorably, we petition the U.S. Tax Court within the 90-day IRC § 6213(a) window. Trial sessions sit in NYC, Buffalo, Albany, and Syracuse.
Penalty abatement under IRC § 6651 and IRM 20.1.1
First-Time Abate administrative relief, reasonable-cause abatement, and statutory exceptions for failure-to-file and failure-to-pay penalties. On accuracy-related penalties under IRC § 6662, we document substantial authority or adequate disclosure to defeat the assessment.
Twelve types of New York tax matters we handle
Federal-tax cases for New York residents and businesses, framed against the state-tax overlay where it matters.
IRS audit of a New York return
High-income individual returns drawn for examination — especially Schedule C, partnership K-1, and pass-through-entity cases tied to NYC small-business filings.
New York residency audit overlap
Taxpayers moving from New York to Florida or Texas often face a state residency audit. When an IRS exam runs alongside, statements made to one agency get pulled by the other. Coordination protects both records.
Trust Fund Recovery Penalty
IRC § 6672 imposes personal liability on officers, partners, and check-signers for unpaid employment-tax withholding. New York restaurant, hospitality, and construction owners are the most common targets.
Federal employment-tax disputes
Form 941 employer payroll tax assessments, worker-classification cases under § 530 of the Revenue Act of 1978, and CP-220 notices on small NYC employers.
Notice of Federal Tax Lien
NFTLs filed in the New York County Clerk, Kings County, Queens County, Bronx County, or upstate clerk offices encumber title and trigger CDP rights under IRC § 6320.
IRS bank or wage levy
Bank levies on accounts held at JPMorgan Chase, Citibank, Capital One, or any New York-licensed bank. Wage levies hit New York employers within days of CP90 issuance.
Passport revocation under IRC § 7345
A seriously delinquent tax debt (over $62,000 for 2025, indexed annually) triggers State Department certification and passport hold. We file the IRC § 7345(e) action to reverse the certification.
FBAR and FATCA non-disclosure
FinCEN Form 114 for foreign accounts over $10,000 aggregate. New York's immigrant-business population makes the Streamlined Filing Compliance Procedures one of the most common engagements.
Innocent Spouse Relief
IRC § 6015 relief for spouses jointly liable on a return where the other spouse's items caused the deficiency. We file Form 8857 with a clean factual record.
Unfiled returns and SFR substitutes
When the IRS files a Substitute for Return under IRC § 6020(b), the assessed tax is almost always overstated. Filing the correct original return is the first move — it almost always reduces the balance.
Cryptocurrency tax assessments
CP2000 notices on unreported digital-asset gains, basis-tracking failures, and DeFi-protocol income. New York is a heavy reporting state with its BitLicense regime and a population of digital-asset users.
Currently Not Collectible status
When household allowable expenses under the IRS Collection Financial Standards exceed income, we file Form 433-F or 433-A and place the account in CNC status under IRM 5.16.1, freezing collection.
Nine common causes of tax debt for New Yorkers
Patterns we see repeatedly in New York-based engagements. None of them are unusual — all of them are resolvable.
1. Underwithheld W-2 income
A New Yorker hitting the state's top brackets — 9.65% above $1.6M, 10.30% above $5M, 10.90% above $25M — plus federal 37% and NYC 3.876%, often discovers the W-4 was filed incorrectly and a five-figure balance is due.
2. Self-employment underpayment
Sole proprietors and partnerships file Schedule C or K-1 income with no estimated-tax payments. The first IRS CP14 lands the following spring with penalties under IRC § 6654.
3. Business closure
When an LLC or S-corp closes with unpaid Form 941 payroll-tax balances, IRC § 6672 follows the responsible officer personally — well after the entity is dissolved.
4. Divorce and joint-return fallout
A jointly-filed return tied to a now-former spouse's understatement leaves both parties liable until Innocent Spouse relief under IRC § 6015 is granted.
5. Identity theft and fraudulent returns
A return filed in your name with refund redirected. Form 14039 starts the IRS identity-theft case; the assessment must be corrected, not just protested.
6. Cryptocurrency CP2000 surprise
Exchanges issue Form 1099-DA (introduced 2025), and the IRS computer matches reported gains. Missed basis records turn into ordinary-income assessments at the full sale price.
7. Late-filed or unfiled returns
Failure-to-file under IRC § 6651(a)(1) compounds at 5% per month, capped at 25%. After three years, refunds are barred under IRC § 6511.
8. Real-estate sale without estimated tax
A Manhattan or Brooklyn co-op or condo sale generating substantial capital gain, with no Form 1040-ES payment, produces a tax bill the next April.
9. Stock-option exercise without planning
ISO disqualifying dispositions and NSO ordinary-income inclusions hit New York tech and finance employees with AMT and large balances due.
Eight tax liabilities that pull in New Yorkers
Federal authority alongside the New York statute when there is a parallel.
Failure to file federal return
IRC § 6651(a)(1) imposes 5%/month, max 25%, plus interest under IRC § 6601. The state mirror is N.Y. Tax Law § 685(a)(1).
Failure to file New York State return
N.Y. Tax Law § 685(a) imposes 5%/month, max 25%, with separate calculation rules. The Department of Taxation and Finance may issue a Notice of Deficiency under § 681.
Federal § 7122 Offer in Compromise eligibility
All federal returns must be filed (IRC § 7122(d) compliance) and the offer must reflect Reasonable Collection Potential. The non-refundable $205 application fee may be waived for low-income certified offers.
New York State sales-tax delinquency
N.Y. Tax Law § 1145 imposes penalties of up to 30% plus interest. Personal liability for “responsible persons” under § 1131(1) pierces the corporate veil for unpaid sales tax.
Trust Fund Recovery Penalty
IRC § 6672 imposes 100% personal liability on responsible persons for unpaid trust-fund employment tax. New York applies a similar personal-liability rule to withheld state income tax under N.Y. Tax Law § 685(g).
Accuracy-related penalty
IRC § 6662 imposes 20% on substantial-understatement or negligence; § 6663 imposes 75% on fraud. Defense is built on substantial authority, adequate disclosure, or reasonable cause.
NYC Unincorporated Business Tax
NYC imposes a 4% UBT on sole proprietors, partnerships, and LLCs taxed as partnerships doing business in the city. The NYC Department of Finance administers it separately from state and federal income tax.
Transferee liability
IRC § 6901 lets the IRS pursue a transferee — a person who received property from a delinquent taxpayer — for the transferor's unpaid tax, up to the value of the transferred property.
What resolution can look like
Debt reduced
An accepted IRC § 7122 Offer in Compromise can resolve six-figure balances for cents on the dollar where Reasonable Collection Potential supports the offer. The acceptance rate sits around 33% nationally; preparation determines the outcome.
Penalties abated
First-Time Abate removes a single year of failure-to-file or failure-to-pay penalties for taxpayers with a clean three-year compliance record. Reasonable-cause abatement under IRM 20.1.1 reaches further when supported by documentation.
Lien released or withdrawn
Once a debt is paid in full, the IRS releases the Notice of Federal Tax Lien within 30 days per IRC § 6325(a). On an Installment Agreement of $25,000 or less, lien withdrawal under Form 12277 can be requested to clear title.
Sample tax-resolution outcomes
Anonymized client matters drawn from our $100M+ aggregate tax-relief record across 2,000+ resolved cases.
| Year | Tax debt | Resolution | Final outcome |
|---|---|---|---|
| 2024 | $152,296 | IRC § 6159 Installment Agreement | Accepted at $25/month, partial-pay |
| 2024 | $138,296 | Streamlined Installment Agreement | Accepted at $25/month |
| 2023 | $130,555 | Partial-Pay Installment Agreement | Accepted at $50/month |
| 2023 | $128,206 | IRC § 6159 Installment Agreement | Accepted at $25/month |
| 2022 | $116,451 | Partial-Pay Installment Agreement | Accepted at $50/month |
Past results do not guarantee future outcomes. Each tax case is unique. Results depend on the specific facts of the matter, including the taxpayer's financial condition, compliance history, and the discretion of the Internal Revenue Service.
Why Victory Tax Lawyers for a New York federal-tax case
Victory Tax Lawyers is California-Bar-admitted, not New York-Bar-admitted. That distinction matters — and it does not block our work. The U.S. Tax Court is a federal court with nationwide jurisdiction; an attorney admitted to that court may petition and try cases in any of its trial locations, including New York City, Buffalo, Albany, and Syracuse. IRS administrative practice runs on Form 2848 Power of Attorney, which is accepted from any attorney in good standing with any state bar plus an active Centralized Authorization File number. Most of our New York clients never need a separately admitted New York attorney because the case is, at its core, federal.
When a matter does require New York state-court appearance — a Tax Appeals Tribunal exception going to the Appellate Division Third Department in Albany, for example, or a state-court collection action — we coordinate with locally admitted New York counsel under a co-counsel arrangement. The federal portion of the engagement, which is usually the bigger exposure, stays with us.
What distinguishes our firm: a California-Bar-admitted managing attorney with active U.S. Tax Court admission, an Enrolled Agent on staff for IRS administrative work, a 5.0 / 72-review Google rating, and $100M+ in cumulative tax relief secured across 2,000+ resolved matters. No marketing claim of being a New York-licensed firm — we are not. A factually accurate offer of federal tax representation, available to any New Yorker, at the same standard we apply to a Los Angeles client.
Our seven-step process for New York clients
Free consultation
A 30-minute call with a tax attorney to scope your matter, identify deadlines, and decide whether engagement is the right move.
Engagement letter
A written scope, fee structure, and conflict check. Flat fees for administrative resolution; hourly or hybrid for litigation.
Form 2848 and CAF
We file the federal Power of Attorney, register on the IRS Centralized Authorization File, and step in as the contact of record.
Transcript and CSED analysis
We pull IRS account transcripts via Form 8821, calculate each year's CSED under IRC § 6502, and identify tolling events.
Strategy memo
A written summary: the resolution path (OIC, IA, CNC, audit response, CDP, Tax Court), the timeline, and the realistic outcome range.
Filing and negotiation
We file the operative document — Form 656, Form 433-A(OIC), Form 9423, Form 12153 — and handle every IRS contact.
Compliance monitoring
After resolution we monitor compliance through the OIC five-year terms or the IA term, file future returns, and prevent default.
Two collection clocks: federal CSED and New York's 20-year rule
The IRS has ten years from the date of assessment to collect a federal tax under IRC § 6502. After the Collection Statute Expiration Date, the debt is extinguished by operation of law. The clock pauses (“tolls”) when an Offer in Compromise is pending, when a Collection Due Process petition is filed, during bankruptcy, when an installment agreement is requested, and when the taxpayer is outside the United States for six months or more.
New York runs a parallel state collection rule under N.Y. Tax Law § 174-b: state tax liabilities are extinguished 20 years after the first date a warrant could be filed. For sales-tax warrants filed after April 1, 2024, the state collection window shortens to 10 years. Many New York taxpayers carry a federal CSED that will run out before the New York warrant expires — or vice versa. Pull both records and know both dates before agreeing to any payment plan or amended return that could restart the clock.
New York tax authorities and venues
A working knowledge of the tribunals, agencies, and field offices in New York is what separates an answered Notice from a wage levy. Below is the working list our firm uses on every New York matter.
Internal Revenue Service
The federal tax authority, at irs.gov. New York Taxpayer Assistance Centers operate at 110 W 44th Street (Manhattan), 2 Metrotech Center (Brooklyn), 130 S Elmwood Avenue (Buffalo), 1 Clinton Square (Albany), 100 State Street (Rochester), and 100 S Clinton Street (Syracuse). Appointments are required.
U.S. Tax Court — New York trial sessions
The U.S. Tax Court holds trial sessions in New York at the Jacob K. Javits Federal Building, 26 Federal Plaza, Room 206, New York City. Buffalo, Albany, and Syracuse also host trial sessions (no permanent courtrooms; addresses on the notice of trial). Petitions are filed at ustaxcourt.gov.
New York State Department of Taxation and Finance
The state tax authority, at tax.ny.gov. Administers personal income tax, corporate franchise tax (Article 9-A), sales and use tax, withholding tax, and the state Offer in Compromise program under Form DTF-4 and DTF-4.1.
NYC Department of Finance
The city tax authority for New York City, at nyc.gov/site/finance. Administers the Unincorporated Business Tax (4% on partnership and sole-prop income), the NYC personal income tax (top resident rate 3.876%), commercial rent tax, and real-property tax.
N.Y. Division of Tax Appeals & Tax Appeals Tribunal
The quasi-judicial state body that hears disputes between taxpayers and the Department of Taxation and Finance, at dta.ny.gov. Administrative Law Judges issue determinations; the Tax Appeals Tribunal hears exceptions. Final decisions go on to the Appellate Division, Third Department, in Albany.
IRS Independent Office of Appeals
The administrative-appeals body within the IRS that resolves cases without litigation. New York cases run through the Appeals offices serving the region. Filings: Form 9423 (collection appeal) and Form 12153 (CDP). Page: irs.gov/appeals.
U.S. District Court for the Southern District of New York
Refund suits filed after payment of tax and exhaustion of administrative remedies under IRC § 7422 may be brought in the U.S. District Court (S.D.N.Y. or other appropriate district) or the U.S. Court of Federal Claims.
Taxpayer Advocate Service — New York
An independent organization within the IRS that helps when normal channels stall. New York TAS offices serve Manhattan, Brooklyn, Buffalo, and Albany. Page: taxpayeradvocate.irs.gov.
Speak with a tax attorney about your New York matter
Free consultation, attorney-client privileged, no obligation. If a Notice of Deficiency or Final Notice of Intent to Levy is in front of you, the deadline to respond is real and short — call today.
Frequently asked questions — New York tax
Does New York have a state income tax?
Yes. New York State levies a progressive personal income tax with brackets ranging from 4% on the first $12,800 of taxable income (single filer) to 10.90% on income above $25 million. The top rate is one of the highest in the country. New York City residents also pay a city personal income tax on top of the state tax, currently topping out at 3.876% for high earners. Yonkers residents pay an additional surcharge. The combined federal-state-city marginal rate for a high-earning New York City resident exceeds 50%.
Where is the closest U.S. Tax Court trial location in New York?
The U.S. Tax Court holds regular trial sessions at the Jacob K. Javits Federal Building, 26 Federal Plaza, Room 206, in lower Manhattan. Buffalo, Albany, and Syracuse also host trial sessions, though without permanent courtrooms — addresses are listed on the notice of trial when your case is calendared. A taxpayer anywhere in New York State can request the trial location nearest to their residence when filing the Tax Court petition.
What is New York's collection statute of limitations?
N.Y. Tax Law § 174-b extinguishes most state tax liabilities 20 years after the first date a tax warrant could be filed. For sales-tax warrants filed after April 1, 2024, the period is shortened to 10 years. The 20-year period runs from the day after the last day specified for payment in the notice and demand — or, if hearing rights exist, the day those rights are exhausted. The federal CSED under IRC § 6502 is a separate ten-year clock running from the federal assessment date.
Can I be audited by both the IRS and the New York State Department of Taxation and Finance for the same year?
Yes. The IRS and the New York Department of Taxation and Finance operate independently and share information through the IRS-state exchange program. A federal audit adjustment is routinely reported to New York within 90 days under the state's federal-change reporting rule (N.Y. Tax Law § 659), and vice versa. We coordinate the two audits to prevent inconsistent positions on the federal record from costing you on the state return.
Does New York offer an Offer in Compromise equivalent to the federal program?
Yes. The New York State Department of Taxation and Finance accepts Offers in Compromise on Form DTF-4 (liabilities not fixed and final) and Form DTF-4.1 (liabilities fixed and final). The Department considers offers from taxpayers discharged from bankruptcy, taxpayers who are insolvent, and individual taxpayers for whom collection in full would cause undue economic hardship. The standards parallel federal IRC § 7122 doubt-as-to-collectibility and effective-tax-administration analysis, but the state runs its own review and decision process. Publication 220 details the program.
What is a New York residency audit?
A residency audit examines whether a taxpayer who claims non-resident status (often a former New Yorker who moved to Florida, Texas, or another no-income-tax state) actually changed domicile. New York applies a primary-domicile test plus a 183-day statutory-residency test. The Department requests utility bills, dental and medical records, vehicle registrations, EZ-Pass records, credit-card geo-tagging, and personal calendars to track day count. These audits are among the most aggressive in the country and routinely produce six-figure adjustments. The federal IRS may run alongside on related issues.
What is the New York City Unincorporated Business Tax?
The NYC Unincorporated Business Tax (UBT) is a 4% city tax on net income earned by sole proprietors, partnerships, and LLCs taxed as partnerships doing business in New York City. It is administered by the NYC Department of Finance, separately from state and federal taxes. Sole proprietors get a $15,000 exemption and a $3,400 credit; partnerships get $5,000 plus $10,000 per partner. NYC residents may claim a personal-income-tax credit for UBT paid by the entity, ranging from 100% (income up to $42,000) down to 23% (income above $142,000).
Can a California-Bar-admitted attorney represent me in New York?
For federal IRS matters — yes. The IRS accepts Form 2848 Power of Attorney from any attorney in good standing with any state bar. The U.S. Tax Court is a single federal court with nationwide jurisdiction; an attorney admitted to that court may represent a taxpayer at any Tax Court trial location, including New York City, Buffalo, Albany, and Syracuse. For state-court litigation in New York (rare in tax-resolution work), we co-counsel with locally admitted New York attorneys. The bulk of most engagements — audit defense, OIC, IA, levy release, Tax Court — is federal.
What if I have unfiled returns going back several years?
The IRS Voluntary Filing Compliance policy and IRM 5.1.11.6 generally require the last six years of returns to bring a taxpayer back into compliance. Filing prior-year returns is the first step before any OIC, IA, or CNC request — IRC § 7122(d) compliance is a prerequisite for an Offer. Refunds claimed on returns filed more than three years after the original due date are time-barred under IRC § 6511(b)(2). New York follows a parallel state filing-compliance posture.
Can the IRS levy my New York bank account or wages?
Yes — after a Final Notice of Intent to Levy (CP90 or LT11) and expiration of the 30-day Collection Due Process window under IRC § 6330, the IRS may levy bank accounts at New York-licensed institutions and serve wage levies on New York employers. A timely Form 12153 CDP request halts collection while the case is reviewed by Appeals. After a CDP determination, the taxpayer has 30 days to petition the U.S. Tax Court under IRC § 6330(d)(1).
What is the difference between a Notice of Deficiency and a Notice of Determination in New York?
A federal Statutory Notice of Deficiency (the “90-day letter”) is the IRS's final pre-assessment notice; it triggers the 90-day U.S. Tax Court petition deadline under IRC § 6213(a). A New York State Notice of Deficiency (issued under N.Y. Tax Law § 681) or Notice of Determination triggers a 90-day petition window to the New York State Division of Tax Appeals. Both are time-critical. Missing either deadline forfeits the right to a hearing before payment.
How long does a federal Offer in Compromise take to process?
An IRS Offer in Compromise typically takes six to twelve months from filing to a final decision. The IRS deems an Offer accepted if not rejected within 24 months under IRC § 7122(f). While the OIC is pending, IRC § 6331(k) bars most levies, and the CSED is tolled. Rejected offers carry a 30-day Appeals window. A well-documented Offer with a complete Form 433-A(OIC) or 433-B(OIC) financial package moves faster than one returned for incompleteness.
What is the federal Trust Fund Recovery Penalty and who is at risk in New York?
The Trust Fund Recovery Penalty under IRC § 6672 imposes 100% personal liability on responsible persons — officers, directors, partners, check-signers, payroll managers — for the trust-fund portion (withheld income tax and employee FICA) of unpaid employment taxes. New York hospitality, construction, and restaurant owners are the most common targets. The IRS uses Form 4180 interviews to identify responsible persons. Defense centers on lack of willfulness and lack of authority over the funds.
Will hiring a tax attorney stop IRS collection action immediately?
Once Form 2848 is on file, the IRS routes all communication through the attorney and stops contacting the taxpayer directly. Active levies are not automatically lifted by the POA filing alone — release requires either a financial showing under IRC § 6343, a CDP filing under IRC § 6330, or an installment agreement / OIC submission that triggers the IRC § 6331(k) collection bar. We move on those concurrently when a levy is in place. State levies follow a similar pattern: a New York Power of Attorney (Form POA-1) routes state contact, and a pending Offer in Compromise on the state side pauses warrant enforcement.
About the author
This page was written and reviewed by Parham Khorsandi, Esq., Managing Attorney of Victory Tax Lawyers, LLP. Cal Bar #266658. Admitted to practice before the United States Tax Court. Mr. Khorsandi has resolved over 2,000 federal tax matters and secured more than $100 million in tax relief for clients across all 50 states.
Page last reviewed: . Editorial standard: every federal-statute citation links to law.cornell.edu (Legal Information Institute, Cornell Law School). Every New York statute citation links to nysenate.gov. Every administrative authority links to its primary .gov source. Material changes to the law are reflected within 30 days of effective date.
Attorney Advertising. This page is provided by Victory Tax Lawyers, LLP for general informational purposes only. Nothing on this page constitutes legal advice, creates an attorney-client relationship, or substitutes for consultation with a licensed attorney about your specific tax matter. Prior results described or referenced do not guarantee a similar outcome. Each tax case turns on its individual facts, applicable law, and the discretion of the Internal Revenue Service, the New York State Department of Taxation and Finance, the U.S. Tax Court, or other adjudicating body.
Victory Tax Lawyers, LLP is California-Bar-admitted with its principal office at 1100 S. Robertson Blvd., Los Angeles, CA 90035. The firm represents clients in federal tax matters nationwide via Form 2848 Power of Attorney and admission to the United States Tax Court. The firm is not admitted to practice in the courts of the State of New York; where a New York state-court appearance is required, the firm associates with locally admitted counsel.
IRS Circular 230 Disclosure: The discussion of U.S. federal tax issues on this page is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed under the Internal Revenue Code or for promoting, marketing, or recommending to another party any tax-related matters addressed. For specific tax advice, consult independent tax counsel.
Related practice areas
Offer in Compromise
IRC § 7122 settlements
Installment Agreement
IRC § 6159 payment plans
Tax Lien Help
NFTL release and discharge
Tax Levy Defense
IRC § 6343 release
Audit Representation
IRS examinations
Penalty Abatement
IRC § 6651 relief
Back Taxes
Unfiled-return resolution
See other states
All 50 areas we serve
Authorities cited on this page
- 26 U.S.C. § 7122 — Federal Offer in Compromise
- 26 U.S.C. § 6159 — Installment Agreements
- 26 U.S.C. § 6321 — Federal Tax Lien
- 26 U.S.C. § 6325 — Lien Release and Discharge
- 26 U.S.C. § 6331 — Levy and Distraint
- 26 U.S.C. § 6343 — Release of Levy
- 26 U.S.C. § 6502 — Collection Statute Expiration
- 26 U.S.C. § 6213 — Tax Court Petition Window
- 26 U.S.C. § 6320 — CDP for Liens
- 26 U.S.C. § 6330 — CDP for Levies
- 26 U.S.C. § 6651 — Failure-to-File and Failure-to-Pay
- 26 U.S.C. § 6672 — Trust Fund Recovery Penalty
- 26 U.S.C. § 6015 — Innocent Spouse Relief
- 26 U.S.C. § 7345 — Passport Revocation
- N.Y. Tax Law § 174-b — N.Y. 20-year collection limitation
- N.Y. Tax Law § 681 — N.Y. Notice of Deficiency
- N.Y. Tax Law § 685 — N.Y. failure-to-file penalty
- N.Y. Tax Law § 1131 — N.Y. sales-tax responsible-person liability
Cities we serve in New York
Victory Tax Lawyers represents New York taxpayers before the IRS, U.S. Tax Court, and federal tax authorities. Federal practice is not constrained by state-bar admission — under 31 CFR §10.3 (Circular 230), our attorneys may represent New York taxpayers on federal tax matters through a Form 2848 Power of Attorney.