New York City Tax Resolution

New York City Tax Resolution

If you live in one of the five boroughs of New York City and you are in back tax trouble with the Internal Revenue Service or the New York Department of Taxation and Finance, contact the tax experts and tax attorneys at the Tax Resolution Institute for help. With a central office in downtown Manhattan, the Tax Resolution Institute has extensive experience and real expertise at addressing tax problems faced by New Yorkers.

New York City has been called “the city that never sleeps” where opportunity is always around the next corner. As a result, people take chances with their money, failing to put away the funds to cover their income taxes. In addition, business owners often dip their hands into the IRS Payroll Tax Trust Fund to cover sudden expenses when business slumps. However, the Internal Revenue Service is the largest collection agency in the world that never sleeps and is always waiting to pounce. If you are in tax trouble with either the IRS or the New York Department of Taxation, it is time to take action now.

Since the beginning of the century, New Yorkers have faced a vast array of new taxes and costs to cover unexpected expenses. Although understandable, these expenses have put great pressure on the average taxpayer, causing challenges for individuals, families and businesses New York City is expensive to live in and resident tax rates have increased if your New York City taxable income exceeds $500,000. New York City charges a personal income tax to City residents. The tax is administered and collected by the New York State Department of Taxation and Finance for the City. Every income-earning individual, estate and trust residing in New York City must pay personal income tax.

In addition, Metropolitan Commuter Transportation Mobility Tax (MCTMT) is a new tax imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). New York City also charges a payroll tax in the area of 3%.  Unlike federal and state taxes, you are usually charged municipal income taxes based on where you work and not where you live. For example, if you live in New Jersey and work in New York City, then you pay federal income taxes, New Jersey state income taxes, and city taxes are owed to New York City.

The recent financial crisis in New York City can be explained when you consider that Wall Street accounted for almost half of the $2.9 billion drop in taxes related to employment last year. The payroll for the city’s securities industry — which had its biggest one-year drop last year since at least the 1920s — sank by more than $20 billion in 2009, or nearly 30 percent. That plunge translated to average income of about $308,000 for each of the 167,000 people who worked on Wall Street, down from a peak average of about $400,000 during the boom a few years ago. As a result of these drops in income, many New Yorkers found themselves in income tax crisis with both the IRS and the New York Department of Taxation and Finance.

Wall Street had contributed more than one-fifth of the city’s employment-related taxes, and the city’s overall finance industry — including the insurance and real estate sectors — had contributed almost one-third, according to a recent report. Such wild swings make it difficult for city officials to plan budgets and for other businesses that provide services to Wall Street to operate smoothly. As an economic expert commented, “It’s the volatility that’s so damaging to the city. It’s been feast or famine.” If you live in New York City and the volatility has led to delinquent tax problems for either yourself or your business, call the Tax Resolution Institute. There is a good chance that we can find a workable solution that will help you today.

The Tax Resolution Institute has both the experience and the expertise you need to address your New York State tax debt problems. Contact us today! 877-829-8370