What is a NYS Tax Warrant?
A NYS tax warrant is a judgment against you that is filed by either New York State or NYC as a result of back taxes that you owe [ income tax, sales tax, or withholding taxes].
A tax warrant begins highly aggressive NYS enforcement tactics [ see below ].
Whether you owe taxes to New York State or NYC, New York State will enforce the tax warrant under the tax law.
"What if I just ignore the tax warrant, nothing has happened yet. Maybe NYS just forgot about me and I will continue to ignore the letters"?
The NYS Tax Department is highly aggressive when it comes to enforcement.
Actually, NYS is one of the most aggressive taxing authorities in the nation.
What a NY Tax Warrant Means to Your Life
Your bank account will be drained.
Your driver's license will be suspended.
Your wages will be garnished.
Interest and penalties [compounded daily].
Assets seized.
Inability to buy to sell a home.
Inability to get a loan of any kind.
A NYS tax agent will come to your home.
Losing your job if it requires a license
The tax warrant becomes a matter of public record and is easily accessible by title searchers; credit reporting agencies; and potential employers.
When your tax liability becomes due and owing, the deficiency is “assessed” against you.
The filing of your tax return creates the assessment of the tax.
If you fail to file a tax return, New York State may still assess a tax liability against you based upon based upon income records [ the IRS and the NYS Tax Department share your tax information].
Collection action begins with a notice of deficiency if you owe New York State income tax or a notice of determination if you owe sales and use tax.
The notice of deficiency as well as the tax warrant will be sent to your last known address.
The amount shown in the notice of deficiency or determination will be assessed against you unless you file for a hearing within 90 days from receipt of the notice.
If you fail to file for a hearing to dispute the assessment, New York State may issue a tax warrant for the amount indicated in the notice.
Steps to issuing a tax warrant
Before the NYS tax warrant is issued, you received a Notice and Demand for Payment to your last know address.
You had 21 days to pay the amount due and owing.
The Notice of Demand for Payment was not responded to.
The New York State Department of Taxation and Finance issued a tax warrant.
A tax warrant is a powerful legal tool as it allows an authorized New York State tax agent to take your bank account, income, and sell your real and personal property.
The NYS tax warrant was then recorded at the county clerk’s office in the county in which you live or own real estate and is also filed with the Department of State.
The county clerk will file ( also known as “docketing”) the lien against you, along with penalties and interest [ compounding daily ].
The tax warrant legally creates a lien against any personal property as well as real estate that you own once it is recorded in the county clerk’s office.
You will be unable to sell any property without first paying the tax liability that is owed.
How long does NYS have to collect?
A very long time.
The New York State Department of Taxation and Finance has 20 years from the date that the tax warrant [ not 20 years from the date of the tax liability ]was filed to collect on the tax liability.
In other words, the NYS Tax Department has a very long time and will continue to chase you into retirement and into other states if you move.
Does NY have to go to Court to seize my property?
No.
Once the tax warrant has been docketed (filed) at the county clerk’s office, the New York State employee may begin legal enforcement action against you.
A court proceeding is not necessary to collect the back tax liability that has been assessed against you, along with penalties and interest.
Will moving out of NY help me?
No.
Under the Full Faith and Credit Clause of the United States Constitution ( Article IV, Section 1), other states are legally obligated to respect the judicial records and proceedings of other states.
In other words, the NYS tax warrant will follow you to any other state where you live and the state in which you now live will enforce the warrant against you.
What Can the NYS Tax Department Do?
- Income Execution : Your wages will be garnished until such time that the tax liability is satisfied.
- Bank Levy: Your bank account or bank accounts will be seized up to the amount of your back tax liability, including penalties and interest [compounding daily].
- Driver’s License Suspension : Owe over $10,000 your New York State driver’s license will be suspended.
- Sale & Seizure : New York State has the authority to seize real and personal property that you own.
- NYS Tax Agent Assigned: A NYS Tax Agent will come to your home to harass you. At times, they also begin asking your neighbors about your whereabouts.
Solving Your NYS Tax Warrant Problem [ the first step ]
You received or have been made aware of a NY tax warrant.
If you ignore the problem, it will only get more expensive over time [ interest and penalties compounded every day].
The NYS Tax Department is highly aggressive. A tax warrant began the enforcement clock.
If you need your bank account or income to pay your living expenses, the NYS Tax Department will continue to levy or garnish you until every dollar is collected, including penalties and interest.
The NYS Tax Department will continue to squeeze you.
The first step is to contact our office to see if we can be of help.
If we can assist you, we will start the process of stop enforcement action against you and solving your tax problems.
Stop procrastinating with your tax problems.
Tax problems only get worse over time.
Need IRS or NYS Tax Help?
Call us or complete the contact form for a free tax problem review call to see if we can be of help. We can assist you regardless of location.
600 Old Country Rd., Suite 500, Garden City, NY, 11530
516-620-5944
info@taxproblemlawcenter.com