The New York State tax audit process follows a few general rules. At its most basic level, it involves getting a notice from the NYS Department of Taxation and Finance (DTF) that indicates a problem and asks you for information. You then respond. An auditor reviews the information and provides his or her findings

Taxpayers have certain rights during an IRS audit. These are documented in what is known as the Taxpayer Bill of Rights. While it won’t take away the fear of being audited, it is important to know that you have such rights and there are resources available to help ensure you are treated fairly. Having

IRS penalties and interest can be significant because they are meant to encourage taxpayers to address their tax issues promptly. Importantly, they continue to accrue until the underlying tax problem is resolved. As a result, it is crucial to take action quickly to avoid continuing to increase the tax liability. If you owe money

The IRS charges penalties and interest for failing to comply with certain tax obligations. Taxpayers are notified by mail about any penalty, including the reason for the penalty and what steps to take to pay or dispute it. If you receive a notice from the IRS that you are being charged a penalty or

An IRS tax lien expires when the underlying liability is satisfied or the statute of limitations for collection of the debt ends. Generally, the IRS has ten years to collect the taxes owed but there are a few exceptions as discussed in this post. If you were notified of a tax lien, it is

Federal tax law allows you to appeal IRS penalties by following a multi-step process. While you can handle an appeal yourself, there are rules and deadlines that apply at each stage, so it is advisable to consult a tax lawyer for assistance. IRS penalties can be significant so losing your appeal can be costly.

You can request abatement of IRS penalties by following the instructions in the notice you received from the IRS. Some requests can be made by phone, others must be in writing. Importantly, you must be prepared to explain why you believe penalties should be waived. The IRS only recognizes a few grounds for abatement.

Taxpayers can only have one installment agreement with the IRS. If you have an existing installment agreement covering tax debts in prior years and you find that you cannot pay your current year’s tax bill, you cannot seek another installment agreement. Instead, you will have to ask the IRS to amend the installment agreement

The length of an IRS installment agreement (IA) depends on the type of installment agreement you obtain. There are several different types of IAs as discussed further below. The amount and type of tax you owe and how quickly you can pay determines which IA may be right for you. However, it’s important to

Most taxpayers don’t realize that they can get the IRS to forgive tax debt in some circumstances. Typically, this arises when you cannot afford to pay your taxes but there are a few other instances where forgiveness applies. However, applying for these programs can be confusing and it is best to consult a tax

The IRS knows your income because it receives information from your employer, financial institutions and other third parties. It then compares that data to what you reported on your tax return to find discrepancies that can eventually lead to an audit and/or a tax bill. If you receive a notice from the IRS that proposes

An IRS office audit, also known as a service center audit, is an in-person examination that occurs in the local IRS office. Since it is conducted face to face with an auditor, it is crucial to consult a tax attorney to discuss how to prepare for the audit and to represent you at the

An IRS field audit is an in-person audit conducted at the taxpayer's home, place of business or accountant's office. It is the most comprehensive type of audit and is used when the IRS wants to thoroughly review the taxpayer’s records and establish facts such as inventory and assets that confirm the tax return. Typically,

If the IRS sends you an audit notice, you may go into panic mode but learning how to survive an IRS tax audit isn’t complicated. The key to success is staying calm so you make good decisions. A skilled tax attorney can provide essential guidance but whether you use an attorney or not,

There are many reasons why the IRS would reject a tax return with most involving simple mistakes. Fortunately, whether you fill out your tax return electronically or on paper, it is usually relatively easy to fix most errors. However, you must act promptly to ensure you don’t miss the filing deadline, especially since some