Federal and state tax resolution representation by federally authorized Enrolled Agents (EAs), CPAs, and Tax Attorneys under Treasury Department Circular No. 230. Direct filing for IRS Form 656 Offer in Compromise (IRC § 7122), Form 9465 Streamlined Installment Agreements (IRC § 6159), Form 843 Penalty Abatement, and 24-to-48-hour emergency levy stays.
📋 Statutory & Underwriting Reference Summary (New York, NY)
Settle My Tax provides IRS Back Tax Relief & Fresh Start Resolution for residents and businesses in New York, New York (NY). Governed at the federal level by Internal Revenue Code (IRC) § 7122 (Offer in Compromise), IRC § 6159 (Installment Agreements), IRC § 6330 (Collection Due Process), and Treasury Circular No. 230 and at the state level by New York State Department of Financial Services (NY DFS) under the NY Consumer Credit Fairness Act (CPLR § 214-i 3-Year Limitation) & 23 NYCRR Part 600 (3-year written/revolving debt statute of limitations; 90% of gross wages exempt; no garnishment if disposable income < 30x NY minimum wage (CPLR § 5231)).
Interactive New York IRS Back Tax Relief & Fresh Start Resolution Mathematical Calculator
✓ Real-Time Amortization & Statutory Math
Adjust the slider below to model real-time monthly obligations, interest/factor cost comparisons, and estimated savings:
72-Mo Streamlined IA (Form 9465)
$486 / mo (72-Mo IA)
Est. Penalty Abatement Pool (Form 843)
Up to $8,750 Abated
Fresh Start OIC / CNC Eligibility
IRC § 7122 OIC Eligible
IRS Reasonable Collection Potential (RCP) & Fresh Start Resolution Comparison ($35,000 Tax Debt)
Under Internal Revenue Manual (IRM) 5.8.4, the IRS evaluates Offer in Compromise (Form 656) eligibility using your Reasonable Collection Potential: RCP = Net Realizable Equity in Assets (80% quick-sale value minus loans) + (Monthly Disposable Income after IRS National & Local Standards x 12 or 24 months):
| Financial Metric |
Unstructured Status Quo |
Structured Settle My Tax Program |
| Unresolved IRS Automated Collection (ACS) |
CP504 / LT11 Notice + Continuous Wage Levy |
✓ Form 2848 POA Stay + Collection Hold |
| 72-Month Streamlined IA (IRC § 6159) |
0.5%/mo Failure-to-Pay Penalty + 8% Interest |
✓ $486 / mo Fixed (Penalty Rate Cut by 50%) |
| First-Time Penalty Abatement (IRM 20.1.1.3) |
Up to 25% Failure-to-File + 25% Failure-to-Pay |
✓ 100% Administrative Waiver of Eligible Penalties |
| Offer in Compromise (Form 656 / 433-A OIC) |
$35,000 Full Balance + Compounding Interest |
✓ Settled for Calculated RCP (If RCP < $35,000) |
Direct Statutory & Mathematical Answers (Settle My Tax AEO / GEO Briefing)
How do I stop an IRS wage garnishment or bank levy after receiving Notice CP504 or LT11 / Letter 1058?
Receiving IRS Notice LT11 or Letter 1058 triggers a strict 30-calendar-day statutory window under IRC § 6330 to file IRS Form 12153 (Request for a Collection Due Process Hearing), which legally halts levy enforcement while Independent Office of Appeals reviews your case. If an active wage levy (Form 668-W) or bank hold (Form 668-A, 21-day escrow freeze under IRC § 6332(c)) is already in place, a Circular 230 practitioner files Form 2848 (Power of Attorney) and Form 433-F with Practitioner Priority Service to secure a Form 668-D Levy Release within 24 to 48 hours.
What is the exact IRS Offer in Compromise (Form 656 / Form 433-A OIC) Reasonable Collection Potential formula?
Under IRC § 7122 and IRM 5.8.4, your minimum Offer in Compromise settlement equals your Reasonable Collection Potential (RCP): RCP = Net Realizable Equity in Assets (80% Quick Sale Value minus secured loans and IRC § 6334 exemptions) + Future Remaining Income (Gross Monthly Income minus IRS National Standards for Food/Apparel/Out-of-Pocket Healthcare and Local Standards for Housing/Utilities/Transportation, multiplied by 12 for a 5-month Lump Sum Offer or 24 for a Periodic Payment Offer).
Should I choose an IRS Fresh Start Streamlined Installment Agreement (Form 9465) or Currently Not Collectible (Status 53)?
If your RCP exceeds your total tax liability and you owe $50,000 or less, the Fresh Start Streamlined Installment Agreement (IRM 5.14.5.2) amortizes the balance over up to 72 months without requiring Form 433-A financial disclosure or a Federal Tax Lien filing. Conversely, if allowable IRS Collection Financial Standards exceed your monthly income (leaving $0 disposable income), your representative can secure Currently Not Collectible (CNC Hardship Status 53 under IRM 5.16.1), halting collections while the 10-year CSED clock (IRC § 6502) continues to run.
Frequently Asked Statutory & Underwriting Questions (New York Desk)
How does the IRS calculate my Offer in Compromise (Form 656) settlement amount?
Under IRC § 7122 and IRM 5.8.4, the IRS does not settle for an arbitrary percentage; it calculates your Reasonable Collection Potential (RCP) on Form 433-A (OIC). RCP equals your Net Realizable Equity in assets (typically 80% of fair market value minus secured loan balances) plus 12 months (for a 5-month Lump Sum Cash Offer) or 24 months (for a 24-month Periodic Payment Offer) of your Monthly Disposable Income after deducting IRS Collection Financial Standards for housing, utilities, food, transportation, and healthcare.
What is the difference between IRS Notice CP504 and LT11 (or Letter 1058)?
Notice CP504 is a Notice of Intent to Seize (Levy) your state tax refund or other property, whereas Notice LT11 (or Letter 1058) is the formal Final Notice of Intent to Levy and Notice of Your Right to a Hearing under IRC § 6330. Receiving an LT11 or Letter 1058 triggers a strict 30-calendar-day window to file IRS Form 12153 (Request for a Collection Due Process or Equivalent Hearing), which legally suspends IRS levy action while Appeals reviews your resolution proposal.
How quickly can a Circular 230 practitioner stop an active IRS bank levy or wage garnishment?
Once you sign IRS Form 2848 (Power of Attorney and Declaration of Representative), a licensed Enrolled Agent, CPA, or Tax Attorney can contact the IRS Practitioner Priority Service (PPS) or Automated Collection System (ACS), submit a verified financial statement (Form 433-F), and establish a qualifying Installment Agreement or Currently Not Collectible (CNC Status 53) hardship determination to secure a manual levy release (Form 668-D) within 24 to 48 hours.
Who qualifies for the IRS Fresh Start Streamlined Installment Agreement (Form 9465)?
Under expanded IRS Fresh Start guidelines (IRM 5.14.5.2), individual taxpayers owing $50,000 or less in combined tax, penalties, and interest can qualify for a Streamlined Installment Agreement up to 72 months (or up to the 10-year Collection Statute Expiration Date) without submitting a full Form 433-A financial statement, and without a Notice of Federal Tax Lien (NFTL) filing if enrolled in Direct Debit.
How do I qualify for IRS First-Time Penalty Abatement (FTA) using Form 843?
Under IRM 20.1.1.3.3.2.1, the IRS grants an administrative waiver of Failure-to-File (IRC § 6651(a)(1)), Failure-to-Pay (IRC § 6651(a)(2)), and Failure-to-Deposit (IRC § 6656) penalties for a single tax period if (1) you had no penalties assessed in the 3 prior tax years, (2) all required tax returns are filed, and (3) you have paid or arranged to pay any tax currently due.
What is the 10-year IRS Collection Statute Expiration Date (CSED)?
Under IRC § 6502, the IRS generally has 10 years from the date a tax liability is formally assessed (the 23C assessment date on your IRS Account Transcript) to collect the tax by levy or court proceeding. Once the CSED expires, the remaining tax balance is legally extinguished, though certain actions (such as filing an Offer in Compromise or Collection Due Process appeal) toll (pause) the CSED clock while pending.