Albany Tax Attorney

Why Choose Albany NY Tax Attorney Timothy S. Hart?

If you reside in the Capital region, you need an Albany Tax Attorney with Strong experience when it comes to resolving complex tax problems and getting the IRS and The New York State Tax authorities to understand your situation in a more favorable light. Timothy S. Hart is both a skilled tax attorney with 20-plus years of experience and a respected certified public accountant who holds an advanced degree in taxation. He is admitted to practice in the U.S. Tax Court, is a member of the New York Bar Association and the American Institute of Certified Public Accountants.

While his tax knowledge and educational background are impressive, it is his record of results in helping many people rectify their tax problems and the positive feedback he consistently gets from legal clients of which he is most proud. When you need a tax attorney you can trust to stand up for you with tax authorities, look no further than Timothy S. Hart.

How Our Tax Attorney in New York Can Help You Reach a Better Outcome

Attorney and CPA, Timothy S. Hart has worked up close and personally with many, many clients grappling with massive tax problems.  He understands the stress, anxiety, and uncertainty a person feels when they get that letter or phone call from the IRS or New York Department of Taxation and Finance demanding payment of overdue taxes.  With a skilled attorney at your side, you can take a deep breath, create a strategy, and find a way through to the other side.

Settlements with the New York Department of Taxation

Our law firm has had tremendous success in negotiating on behalf of clients with the New York State Tax Department to settle old tax debts for a fraction of the amount due by utilizing their offer in compromise program.  One client, Karen P. owed $430,000 in payroll taxes, and she settled the account for $70,000.  Another client, Misha A. owed over $100,000 in unpaid sales tax from a failed business, and we were able to settle for $49,000 payable over 60 months. For another business client, Nite M. owed $850,000 in sales taxes and was able to settle the account for less than half that amount ($323,000 paid over 5 years) even though they are still in business and profitable. Lastly, in the case of another client, while married our client had a joint income tax debt of over $57,000. We convinced the New York State Tax Department she was an innocent spouse and lowered her liability to zero.  Needless to say, these clients were pleased with these outcomes.

Don’t Take on Tax Problems Alone

If you’re like many people, you probably feel intimidated or even frightened if you’ve received an audit notice or learned that you are being investigated for non-payment of taxes. Our Albany tax attorney, who has helped many taxpayers like you resolve problems with the IRS and other agencies, has clear understanding of the emotions you may be experiencing and can help relieve your anxiety by providing compassionate and knowledgeable legal assistance.

When you’re facing an audit, he can answer your questions about the process and represent your interests throughout the proceedings. If you are being investigated for tax fraud or tax evasion, Timothy S. Hart will work hard to build a strong defense for you that asserts negligence rather than criminal intent.

If you have unfiled returns or owe back taxes you can’t pay, our tax attorney in New York may be able to negotiate a settlement through an offer-in-compromise. If your offer-in-compromise agreement is accepted, you could pay less than you owe in back taxes. You could also resolve your tax payment problems with the IRS through an installment plan that allows you to pay back taxes over time, although you will still have to pay penalties and interest until the liability is paid off, unless your New York tax attorney can negotiate otherwise for you.

In some cases, if the IRS determines that making you pay any taxes at this time would result in financial hardship, you could qualify for currently not collectible status, which delays collection efforts until when and if your economic situation improves.

Every person’s situation is different. When we learn about your unique circumstances, we will advise you about options for resolving your tax problem. Our law firm provides free phone consultations. Contact us today to get on the path to resolving your stressful tax concern.

Tax authorities are not on your side. If you have a serious tax issue, get help from an Albany tax attorney who will stand up for your rights. Call Timothy S. Hart in Albany at (518) 213-3445 or NYC at (917) 382-5142 to set up a free consultation.

No matter what your issue, when our tax attorney in Albany, NY takes on your case, he will give it the serious attention that it deserves. The tax code and tax regulations are very dynamic and complex. Get help from an attorney who not only understands the law, but has years of experience helping taxpayers get relief. Contact Timothy S. Hart today.

If you know you won’t be able to afford to pay the income taxes you owe in full for this year, you might be starting to panic as tax season approaches and realize that you need tax resolution services. As we all know, failing to pay taxes can result in significant fines as well as potential criminal charges, so it’s smart to get a plan in place. The good news is that there are options available for people in your situation to allow for payments over time and reducing the penalties charged.

Common Issues we help with:

I Can’t afford to pay my taxes in full?

These options are available to help you when you can’t afford your tax bill. They include:

1. Apply for an installment payment agreement.

If you already know you won’t be able to pay what you owe, you can request a payment agreement before you receive a bill from the IRS. You can make the request on the IRS’s website or by submitting an IRS Form 9465 with your tax return.

When a taxpayer cannot pay the IRS a lump sum payoff for their tax debt, they need to create a payment plan with the IRS or NYS. This is known as an Installment Agreement. There are a number of options to consider when the payment plan is established. Obviously, it is almost always best to create the lowest monthly payment plan amount as possible and then pay more to get the balance down quickly, but not be at risk of defaulting the payment plan if money is tight. Therefore, there a number of factors to consider getting the correct balance of paying down the debt quickly, and not having a future issue of a defaulted payment plan. As with other payment plans that you might establish with a creditor, the amount you will pay will depend on the amount you owe, the amount you can afford to pay, and what assets and income you have. The payment plans are within the discretion of the IRS and NYS, which means they decide the amount per month they will accept. Often it takes a lot of hard work to get the IRS & NYS to agree on an affordable number. The IRS & NYS Tax Department does not give much flexibility with the monthly payment being late once the payment plan is established. In some rare instances, the payments can fluctuate if the person or business has seasonal income, or income on a non-recurring basis, such a lawyer who gets paid on contingency basis.

There are three common ways that you can make payments under the IRS Installment Agreement payment plan.

The first is through a payroll deduction. This method needs to have your employer take from your pay the correct amount and send it to the IRS. It sounds straightforward, but sometimes the employer does not want to become involved or your pay cycle is not monthly, and it becomes awkward for the employer to pay the exact right amount each month since the number of payroll cycles in a given month can fluctuate.

The second, and maybe the best method, is using a monthly direct debit electronic transfer from your bank. This payment method, once it is established, takes little energy to make sure the payments are made (other than keeping money in the account), so it is my favorite for most clients.

The last method is to just mail in checks to the IRS or use EFTPS payment system. Typically, when you choose this method the payments needs to be made at least 10 days before the due date to enable the payment to be received by the IRS by the due date. The IRS sometimes sends monthly reminder letters, so that helps you stay compliant with the payment plan so you do not miss a payment and have a federal tax lien issue.

It is always important to understand that the true cost of the tax debt will continue to grow with interest and penalties until is paid off. In some cases, we can assist with a first-time penalty relief. Therefore, it’s important to pay the debt off as quickly as possible while still creating a payment plan that is affordable and not overly stressful to maintain. Also keep in mind that your tax refunds will be used to pay down the tax debt.

2. Ask for additional time to pay.

If you just need more time to acquire the money you owe, you may want to ask the IRS or NYS Tax Department for an extension of time to pay. They generally allow at least a few months. If you qualify, you can have the late payment penalty waived as part of the request.

3. If short term issue, consider applying for a loan or putting the taxes on a credit card.

While this might not sound like a very appealing option, it is better than not paying and then ending up in trouble with the IRS and facing fines for late payment. Obviously, proceed with caution with this idea to see if it makes sense.

4. Consider an Offer in Compromise.

While this might sound like a very appealing option, if you are unable to pay if full, making a partial payment to resolve the issue can be a great outcome if you are eligible, but being eligible is very difficult.

Forms to file an IRS Offer in Compromise (OIC)

To fill your OIC application form, you can find it on the official website of the IRS (irs.gov). You will find an Offer in Compromise Booklet, Form 656-B. You will have to read that form carefully as the IRS includes all the instructions about the application form and the process of submitting an OIC offer to the IRS.

The forms and fees required are:

• Form 433 A (for individuals) (with all required documents)
• Form 433 B (for businesses) (with all required documents)
• Form 656(s) (for both individuals and Corporation/ LLC/ Partnership and must be submitted separately)
• A non-refundable application fee
• A non-refundable initial payment for each Form 656 (as needed)

For paying the application fee and initial payment for the form 656, you will get certain payment options that are Lump Sum Cash and Periodic Payment plans. You can choose any of these two payment methods as per your financial ability. Typically, the quicker you can pay the better the discount.

5. At the very least, pay what you can afford.

Filing a tax return on time and paying what you can afford to pay will eliminate the late filing penalty, reduce the late payment penalty and cut down the interest charges.

Work with an attorney who can help in your exact situation. An experienced tax attorney can help you find a solution with the IRS and NYS. Working with the IRS can be intimidating and confusing, but a having an attorney on your side can make all of the difference.

I have Unfiled Tax Returns

Usually, the most panicked and upset clients call me and when they have not filed their tax returns in many years, and are extremely worried that by this inaction they will be arrested, or worse thrown in prison. Evading tax is a crime, but usually not when the issue is not filing a tax return. Therefore, criminal issues related to unfiled tax returns are not a common occurrence unless it also involves large amounts of unpaid taxes, or it involves unpaid sales tax collected. Occasionally, clients are audited for non-tax problems ( for example workman’s payment insurance, highway permits) by the IRS or State of New York, and the auditor makes the discovery that the taxpayer has not filed their income tax returns in a long time. This discovery causes a lot of angst to the taxpayer, but usually the IRS and the States are not quick to press charges if the tax returns are filed quickly. Typically, you only have a criminal tax problem is you intentionally do not pay the right amount of taxes, so usually they issue is manageable. Therefore, non filing typically does not cause the same level of problems are actively avoiding paying taxes, and your almost never going to jail. Please keep in mind, in New York State it is actually a felony to not file your income tax returns for at least three years in a row where you owe taxes for each of those years. It is not often that NYS Tax uses this law to charge a taxpayer with a crime, but I have seen it applied in hundreds of cases, so it is not overly rare that they do.

The IRS and NYS tax auditors normally take the approach of creating their own estimated version of the income tax return you failed to file (called a substitute tax return), and charging the taxes owed based upon their computation based on limited information. Please keep in mind they have no incentive to lower your tax bill, so their work is suspect. The crucial point is that the substitute tax returns tends to overstate the tax debt amount, since they give you no deductions and use  the highest possible tax rate. As they say, you never get something good for nothing.

The very long standing IRS and NYS voluntary disclosure policy applies to a taxpayer who: 1) Informs the IRS or NYS that they failed to file a tax return, 2) You make the disclosure prior to being notified by the tax authorities, or before you are under criminal investigation for failing to pay the right amount of taxes, 3) File the correct income tax come returns, and cooperate with the tax authorities (NYS and IRS) in ascertaining their correct income tax liability, and 4) Make full payment of the amount of the sales or income taxes due, or if are unable to make payment in full, to create a monthly tax payment plan for the tax balance owed.

Why an Attorney is Helpful

While there’s no way for an individual to completely avoid paying taxes (taxes Fraud), there are ways to cut and reduce the amount of taxes an individual owes. By being proactive and engaging in tax planning, an individual can often reduce his or her tax liabilities substantially. It’s important to note, however, that there are creative strategies that can be employed to reduce the amount of taxes one pays and then there are those that are questionable or outright illegal and you could face IRS criminal charges for evading tax.

Simply failing to file and/or pay one’s taxes is never a good idea. Not only is an individual likely to accrue costly fees and penalties, but he or she may also face criminal charges related to tax evasion. Additionally, it’s never a good idea to file or submit tax-related documents that contain false or doctored figures. Again, an individual who under- reports the amount of income or overestimates deductions will incur costly fines and penalties and may face charges of tax fraud.

IRS criminal charges

In cases where an individual learns that he or she is being investigated or audited by the Internal Revenue Service, it’s wise to contact an attorney. It’s especially important to retain a strong legal advocate and representative if an individual is concerned that an IRS audit or investigation may result in the discovery of questionable or illegal tax-avoidance activities.

The IRS takes matters related to possible acts of tax fraud and evasion very seriously and individuals who are convicted of criminal tax charges often pay dearly—both financially and personally. From punitive financial penalties to lengthy prison sentences, the IRS aims to make examples of individuals who the agency believes are attempting to avoid paying taxes.

Residents in New York who have questions or concerns about their current or past tax-planning strategies can obtain sound legal advice and guidance from an attorney at Timothy S. Hart Law Group. Our attorneys are well-versed in all tax matters and routinely help individuals who are facing IRS audits, fines, liens, levies and criminal charges.

Our Tax Attorney in Albany, NY Answers Common Questions

Tax problems are confusing, and it is understandable that you may have many questions. Following are answers to common questions about tax concerns. To get answers and advice for your individual issue, contact our tax attorney in Albany, NY. Timothy S. Hart provides experienced representation for complex tax problems.

Reach Out for a Free Consult

Need Help With Business Taxes?

Turn to Our Corporation Tax Attorney in Albany, NY

Our corporation tax attorney in Albany, NY, helps businesses with the full range of tax concerns. We can help you with tax planning to potentially avoid audits and disputes with the IRS or state tax authorities. Our corporation tax attorney in Albany can also represent you if you are facing a sales tax audit, employment tax audit or other examination of your business taxes. We help small, medium-sized, and large businesses and corporations maintain federal and state tax compliance.

An audit of your business can cost you substantial money. Our tax attorney assists companies in avoiding and resolving tax issues.

Companies can run into a myriad of tax issues. As a tax lawyer licensed to handle IRS issues nationwide as well as New York State tax concerns, and as a certified public accountant, Timothy S. Hart has the knowledge necessary to assist your business. From advising you about ever-changing federal and state tax regulations to standing up for your company in tax disputes, you can trust our Albany Tax attorney to provide sound legal advocacy and exemplary representation.