Common tax problems that Rochester, NY residents may face, and the tax solutions that are available to help them:
Unfortunately, tax problems are some of the most common stressors for Americans. If you live in Rochester, NY, and are dealing with tax problems, you’re not alone. Millions of people miss deadlines, cannot afford to pay their tax bills, get selected for audits, or face other tax issues.
At our law firm, attorney Timothy S. Hart works to help you resolve your tax issue. Whether you have unpaid back taxes, missed a filing deadline, or are facing asset seizure by the IRS, we help you understand the best option for your situation.
When you need tax assistance, reach out to Tim Hart to get started with a consultation on your path toward tax relief.
It can be easier than you think to fall behind on your tax obligations. Here are common tax issues you may be dealing with in Rochester:
Every state across the nation has differing tax laws in place. This can be quite complicated if you don’t fully understand your state’s requirements. In New York, for example, you need to know what the state requires for business and individual taxes. If you don’t comply, you could face state-specific penalties that increase your tax burden.
Tax time rolls around each year, usually on April 15. Taxpayers commonly miss the filing deadline if they have trouble getting all their information together from employers, clients, or financial institutions. Also remember that you’re generally required to file quarterly tax returns and pay quarterly estimated taxes if you’re self-employed. You are typically required to file with both your state agency and the IRS.
One of the most common tax problems is unpaid taxes. Many reasons may lead to outstanding tax debt, like accidentally missing a filing or payment deadline, not being able to pay what you owe, making a mistake on your tax return, or not paying quarterly estimated tax if required.
Unpaid taxes can quickly lead to notices and penalties from the IRS, which also includes building interest. If you ignore notices and never pay what you owe, the IRS could eventually seize your property or garnish your wages.
The longer you fail to pay your taxes and the higher your balance gets, the more serious IRS collection actions get. Eventually, you may have to deal with liens and levies:
In addition, your passport could be revoked if you have unpaid taxes over $64,000 as of 2025. This number increases annually with inflation.
Part of running a successful business is staying on top of tax and compliance. But requirements can be burdensome. Many people get into trouble with payroll tax issues and paying sales taxes properly. New York State has its own set of requirements for NY-based businesses and sales tax that you never want to overlook.
Whatever tax problem you’re dealing with, our IRSTaxPros can help you navigate it. Contact our firm today to talk to a tax expert.
Both the IRS and New York State offer relief programs to help taxpayers when they fall behind or are experiencing financial hardship. Talk to us at Timothy S. Hart Law Group about these resolution options and which are right for you:
One of the first options to consider is a payment plan, or installment agreement. Say you get hit with a bigger tax bill than you expected, and you don’t have enough to pay it off in one lump sum. You can apply for a payment plan to make monthly payments until it’s paid off.
Depending on your debt amount, you can usually apply online and get set up automatically through the IRS system if you owe less than $50,000 for long-term installment agreements and under $100,000 for short-term (180-day) plans.
In New York, you can apply for an agreement if you owe $20,000 or less, and the agreement period must be within 36 months. At both the state and federal levels, you continue to accrue penalties and interest throughout the duration of your agreement.
If you’re unable to file your tax return by the deadline, you can request an extension in most cases. This will extend your deadline by six months—but only for filing, not for paying what you owe. Still, an extension can help you avoid penalties from building while you get your information together.
New York allows taxpayers to apply for an extension online for free, but you must file the request before your normal filing deadline.
Sometimes it’s not the deadline that’s getting in the way of compliance—it’s your ability to pay your balance, even with a payment plan. If you can show that you can’t afford to pay based on your financial situation, including your income, expenses, assets, and debts, the IRS may agree to settle your debt with you based on the amount they can reasonably expect to collect. This is known as an offer in compromise.
New York State allows applications from taxpayers who are insolvent or discharged in bankruptcy (businesses and individuals) or taxpayers that would experience undue economic hardship if they paid in full (individuals only).
If you can show that you are dealing with an economic hardship, the IRS may temporarily pause collections on your account. Currently not collectible status is not permanent, so you will have to pay once your financial situation improves. This is only an option on the federal tax level.
You may qualify for federal tax penalty abatement, which helps you remove or reduce penalties from your tax balance. The IRS may agree if it’s your first penalty in three years and have otherwise good tax compliance, or if you can show reasonable cause for your failure to comply, like a natural disaster.
If you don’t agree with something the IRS sent you regarding your taxes, such as an assessed tax bill, tax penalty, offer in compromise denial, or results of a tax audit, you can file an appeal. In New York, taxpayers have the right to dispute a decision from the State Tax Department. In both cases, carefully follow the instructions on the notice you received to begin the process.
It’s best to work with a tax attorney when you’re dealing with any kind of legal situation with the IRS or state tax agency.
Just like individuals, businesses may be dealing with an upcoming audit or a large outstanding tax balance. Many of these resolution options also apply to businesses, including installment agreements and penalty abatement. However, there are special rules for dealing with business tax debt.
To ensure you get the best help possible, talk to a tax professional with experience dealing with business owners in Rochester, NY, to find out the best way forward on the New York and federal levels. For example, if you’re having a payroll tax problem, you need a tax attorney who has helped clients navigate this type of issue in the past.
If you are disputing an issue with the IRS or the state, you will have to deal with the U.S. Tax Court and/or state tax court. Most taxpayers don’t have a comprehensive understanding of complex tax laws, especially because they change so much from year to year. A tax attorney will represent you in court and guide you through the legal process to ensure you get the best outcome possible.
Rochester, NY, taxpayers with foreign accounts worth at least $10,000 must report these accounts on the Report of Foreign Bank and Financial Accounts (FBAR). This is just another requirement you have to comply with, if applicable, to avoid penalties and legal issues.
The Foreign Account Tax Compliance Act (FATCA) outlines additional reporting requirements for certain types of foreign assets, and applicable taxpayers need to also fill out Form 8938 to include with their tax return.
These requirements are cumbersome and complicated—but with the right law firm behind you, they don’t have to be. The team at Tim Hart Law Group is ready to help you with these requirements to stay compliant.
Dealing with tax issues on your own can lead to further confusion, additional penalties and interest, and escalating problems with the IRS and the NY State Department of Taxation and Finance. When you need assistance with Rochester, NY, tax resolution services, the team at Timothy S. Hart Law Group is here to help.
Tim specializes in New York tax problems, including unpaid taxes, audits, unfiled tax returns, and tax liens and levies. Examples of how he’s helped clients like you include:
These clients were able to get out from under their burdensome debt with our legal services and guidance.
Our firm will first talk to you to get to know your unique situation and concerns, and we’ll review all applicable information related to the IRS or to New York State. Then, we work with you on a custom strategy to pursue the best outcome possible, whether setting up a payment plan, applying for an offer in compromise, or requesting penalty abatement.
Contact Timothy S. Hart Law Group today to set up a consultation with a Rochester, NY, tax attorney.
No matter the size of your tax debt, you have options if you can’t get it paid off. We will work with you to discover if an installment agreement is right for you, so you can pay off your balance in monthly payments. Other options may be settling your debt through an offer in compromise, requesting penalty abatement, filing an appeal, or asking for currently not collectible status.
Some taxpayers may only think of the IRS when it comes to taxes—but most states require filing and paying income tax as well, including New York. If you forgot to file and pay with New York State and you live in Rochester, NY, don’t ignore the notices the state sends you.
Talk to a tax attorney about whether you should request penalty abatement and how to get back in good standing with the state tax agency. Do what you can to pay as soon as possible to avoid further penalties.
The team at Tim Hart Law Group is ready to help Rochester clients with tax issues, ensuring their concerns are heard and the right path is taken to resolve the issue. Our attorney will help you pursue the right tax relief option for both New York State and IRS taxes.
As a taxpayer, you have the right to deal with your tax issues on your own. But because tax law is complicated, and you may not know all available options, it’s wise to work with a tax attorney who can handle your case for you. An attorney will get to know the challenges you’re facing, review all applicable tax documents, and explain your tax resolution options.