New York State taxpayers who are insolvent or discharged in bankruptcy, or for whom payment in full of an outstanding tax balance would create “undue economic hardship”, qualify for consideration by the State Tax Department for an Offer in Compromise.
A binding agreement whereby the State agrees to settle the tax debt for less than the full amount owed.
The Offer in Compromise program is not simple. It is highly document-intensive, and can take some time. And again, not everyone qualifies. If you are not insolvent or bankrupt, it is necessary to prove undue economic hardship; this means that New York State can conduct a detailed review of your family’s personal finances.
Before thinking of applying on your own for the Offer in Compromise program, consult with our office. We will be able to give you advice specific to your situation that will save you time.