Get Settling New York State Taxes: NYS Offer In Compromise

The Offer in Compromise program allows qualifying, financially distressed taxpayers the opportunity to put overwhelming tax liabilities behind them by paying a reasonable portion of their tax debt. We can consider offers in compromise from: individuals and businesses that are insolvent or discharged in bankruptcy, and.

Non-dischargeable tax debt is collectible for 20 years, with the 20 year period being renewed whenever a payment is made. Tax lien is created by filing of NYS Tax Warrant, which attaches for 10 years to all personal property in any location, and to all real estate located in the County where it is filed.

If you plan to submit an offer in compromise on the basis that you cannot afford to pay the tax owed (as opposed to doubt as to liability or effective tax administration), then your offer amount must be greater than your “reasonable collection potential” (RCP).

The cons include: You may not qualify. Not everyone qualifies for OIC. This method is typically best for people who have very few assets and who are low income earners.

You're eligible to apply for an Offer in Compromise if you: Filed all required tax returns and made all required estimated payments. Aren't in an open bankruptcy proceeding. Have a valid extension for a current year return (if applying for the current year)

NYS accepts Offers in Compromise for one or both of the following reasons: Doubt as to Liability. Doubt as to Collectibility or an individual taxpayer would experience undue economic hardship if he or she had to pay in full.

New York City's Offer-in-Compromise program allows qualifying financially distressed taxpayers to settle their non-property tax debt for less than the full amount owed.

If you plan to submit an offer in compromise on the basis that you cannot afford to pay the tax owed (as opposed to doubt as to liability or effective tax administration), then your offer amount must be greater than your “reasonable collection potential” (RCP).