Tax Debt Archives - Page 2 of 5

Will the IRS Revoke My Passport for Not Paying Taxes?

21 September, 2025 | Passport Tax Debt

Can the IRS Revoke My Passport Over Back Taxes? You could lose your passport over unpaid taxes. Unpaid federal tax debt can lead to restrictions and revocation of your passport, making it impossible for you to travel to visit family or work. IRS passport revocation is indirectly possible, meaning that while the IRS cannot outright revoke your passport, it can take steps that trigger the U.S. State Department to place lim... CONTINUE READING

New York Tax Asset Seizure: The Assets You Could Lose

21 September, 2025 | Tax Debt

What Assets Can New York State Legally Seize for Back Taxes? If you owe taxes to the New York Department of Taxation and Finance, they may seize your assets. The DTF's asset seizure process is slightly different from the IRS's, but in both cases, they can take a significant portion of your assets. To protect your assets, you need to know what the DTF can legally seize and how to respond when you receive a levy (seizure) notice. Key takeaways:... CONTINUE READING

What Is IRS Notice LT36? Guide for Federal Employees

17 August, 2025 | Late Filed Returns Tax Debt

What Is IRS Notice LT36? Sent to Federal Employees and Retirees Since 2013, the number of federal employees with tax debt has risen to about 6% (5% or more of congressional employees and about 4% of White House staff). In the spring of 2025, the IRS sent letters to 525,000 federal employees and retirees with a dire implication: If you don’t reconcile... CONTINUE READING

Can You Be Personally Liable for Unpaid NY Business Tax?

23 July, 2025 | tax collections Tax Debt

Who Can Be Held Personally Liable for New York State Business Taxes? In New York, the Department of Taxation and Finance (DTF) has the right to hold individuals responsible for unpaid sales or withholding taxes. The state is willing to go after individuals who have the authority and responsibility to track, calculate, withhold, deposit, or otherwise remit the business's sales or payroll taxes to the NYS DT... CONTINUE READING

New York State Tax Debt—Collection Statute of Limitations

20 April, 2025 | tax collections Tax Debt

Statute of Limitations on NY State Tax Debt—How Long Can They Collect? After state taxes have been assessed, the Department of Taxation and Finance (DTF) can only collect taxes for a set period of time. In New York State, the statute of limitations is generally 20 years. However, there are exceptions, and the starting point for the 20 years depends on the specific details of your tax situation. This limit differs for each state, and as a New York resident... CONTINUE READING

New York State Tax Penalties for Individuals and Businesses

20 April, 2025 | Tax Compliance Tax Debt Tax Penalties

Understanding New York State Tax Penalties: A Comprehensive Guide If you fall behind on your New York State taxes, file incorrectly, or engage in fraud, the Department of Taxation and Finance (DTF) may add a wide range of penalties to your tax bill. By understanding the penalties you may be charged and learning more about the Department’s expectations for taxpayers, you can stay compliant with all state tax requirements and... CONTINUE READING

IRS Form 433-A: When to File and How to Fill It Out

20 April, 2025 | Payment Plans Tax Debt

IRS Form 433-A: Guide to Qualifying for IRS Relief If you’re requesting certain forms of tax relief from the IRS, they may want to verify your financial information. Depending on the type of relief you are asking for, they either want to see if you are able to make the monthly payments you’re requesting or if you have enough financial need for the assistance you are asking for. To determine this, the IRS will ask you to complete Form 433-A. Accuracy and... CONTINUE READING

IRS Revenue Officers vs. Revenue Agents—How to Respond

9 February, 2025 | Tax Debt Tax Notices

What is the Difference Between an IRS Revenue Officer and an IRS Revenue Agent? When an IRS representative contacts you directly to discuss your taxes—whether it’s a specific return, the results of an audit, or a past-due tax debt—it’s important to know the scope of their work and what they are legally allowed to do in regards to your tax debt. While some people may use the terms “IRS reve... CONTINUE READING

Taxes After Death: Who Is Responsible and What to Expect?

15 January, 2025 | Tax Debt Tax Laws

Summary When someone dies, their estate is responsible for paying any outstanding tax debt. The executor of the estate must file a final tax return and pay any taxes owed before distributing assets to heirs. Heirs do not inherit tax debt, but they may be responsible for taxes on inherited income or property. Surviving spouses may be responsible for their deceased spouse's tax debt if they fil... CONTINUE READING

What Happens to Your 401(k) If You Owe Taxes to the IRS?

18 October, 2024 | Tax Debt

Summary Yes, the IRS can take your 401(k) for taxes owed if you fail to pay your taxes in full and on time. The IRS has broad authority to levy assets, including retirement accounts, to collect unpaid taxes. However, the IRS generally only takes this action as a last resort after other collection efforts have failed. To protect your 401(k) from an IRS levy, it's crucial to be proactive about your tax debt. Respond to IRS notices promptly and work with the IRS to establish a... CONTINUE READING

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