Best Tax Lawyers in New York City

1. About Tax Law in New York City, United States

Tax law in New York City operates across federal, state, and local levels. The major regulators include the Internal Revenue Service (IRS) for federal taxes, the New York State Department of Taxation and Finance for state taxes, and the NYC Department of Finance for city and local tax administration. NYC residents and businesses face a mix of income, sales, property and business taxes that can interact in complex ways.

Key tax obligations in the city include personal income tax (state and federal components), sales and use taxes, corporate and franchise taxes at the state level, and various city level taxes such as property taxes and, for some businesses, the Commercial Rent Tax. Property taxes are administered at the local level but funded by state law and assessed under state real property rules. Understanding how these layers fit together is essential when planning or dealing with tax disputes.

For reliable guidance, consult official sources from the IRS, the New York State Department of Taxation and Finance, and the NYC Department of Finance. See: IRS, New York State Department of Taxation and Finance, NYC Department of Finance.

2. Why You May Need a Lawyer

A tax matter in New York City often involves more than straightforward forms. An attorney can help navigate audits, appeals, and settlement negotiations with multiple agencies. You benefit from professional analysis of records, deadlines, and the risk of penalties or interest.

• NY State tax audit or sales tax dispute for a NYC business. A Manhattan restaurant may face an audit over sales tax collections or misclassification of workers. A tax attorney can prepare the defense, communicate with the tax authorities, and negotiate penalties.
• Appealing a real property tax assessment on a NYC property. Homeowners and developers may disagree with assessment increases or proposed exemptions. An attorney can file timely appeals and present evidence for reductions.
• Real estate transfer tax and related filings for NYC transactions. Transfer taxes upon property sales require precise calculations and forms. Counsel helps ensure accurate filings and avoids costly errors at closing.
• Pass-Through Entity Tax elections for a NYC business. Entities may elect to pay tax at the entity level to optimize tax outcomes. An attorney guides eligibility, timing, and compliance obligations.
• Employment tax and withholding compliance for NYC employers. Complex payroll taxes require accurate reporting and defense if audits arise. A tax lawyer can review payroll practices and notifications to authorities.
• IRS or NYSDTF notices involving fraud, substantial understatement, or penalties. Timely, strategic responses with appropriate documentation are crucial to limit exposure and preserve rights.

3. Local Laws Overview

1. New York State Tax Law (NYS Tax Law) governs personal income tax, corporate tax, sales tax, and other state-level impositions that NYC residents and businesses must follow. Recent developments include policy changes affecting pass-through entities and other corporate structures. For more details, see the NYS Tax Department.
2. New York City Administrative Code governs local taxes and business taxation measures enforced within the city. The code provides the framework for local taxes such as the Commercial Rent Tax and certain business taxes assessed by the city. See the NYC Department of Finance for enforcement terms and procedures.
3. New York State Real Property Tax Law (RPTL) sets the state framework for real property taxation, which NYC implements through local assessments and school and municipal funding structures. RPTL governs assessment cycles, exemptions, and appeal rights that affect NYC property owners. See the New York Senate’s Real Property Tax Law page for the official text.

Recent change to highlight The Pass-Through Entity Tax (PTET) is a major NYS policy change affecting many NYC-based businesses. It allows eligible pass-through entities to pay the tax at the entity level, potentially reducing owners' personal tax burdens. PTET became available for the 2021 tax year and beyond. For official guidance, see the NYS Department of Taxation and Finance PTET page.

"New York's Pass-Through Entity Tax allows eligible pass-through entities to pay tax at the entity level." - NYSDTF PTET guidance

For quick reference, you can review these official sources on these topics: New York State Department of Taxation and Finance and NYC Department of Finance. Additionally, the Real Property Tax Law is accessible via the New York State Senate.

4. Frequently Asked Questions

Questions below are crafted to reflect real-world concerns for New York City residents and businesses. Each item starts with a question word and stays within a readable length.

What is the difference between state and city taxes for NYC residents?

State taxes are administered by the state department and cover most residents across New York. City taxes include local components that NYC and its agencies administer, such as property taxes and city-level business taxes. Both layers can affect overall tax liability.

How do I start an NYS tax audit appeal in NYC?

Begin by collecting your returns, notices, and supporting records. Contact a tax attorney to review the notice, determine deadlines, and prepare a formal appeal with the appropriate department. A lawyer can guide you through the administrative process and possible settlement.

When are NYC property tax bills due and how can I pay?

Property tax due dates are published by the NYC Department of Finance and vary by property type and payment plan. You can pay online, by mail, or in person at designated offices. An attorney can assist with deadline tracking and any appeal related to assessments.

Where can I appeal a NYC or NYS tax assessment?

Appeals can be filed with the relevant tax authority, such as the NYS Department of Taxation and Finance for state assessments or the NYC Department of Finance for city assessments. A tax attorney can help prepare the appeal documentation and evidence for submission.

Why should I hire a tax attorney for a NYS audit?

A lawyer can interpret complex tax rules and deadlines, prepare strong defenses, and negotiate penalties. In NYC, local nuances and notices require careful handling to avoid improper settlements. An attorney can protect your rights and time limits throughout the process.

Can I elect the Pass-Through Entity Tax for my NYC business?

Yes, eligible pass-through entities may elect PTET to pay NYS tax at the entity level. An attorney can assess eligibility, timing, and how to report the election on required forms. See NYSDTF PTET guidance for specifics.

Should I budget for penalties and interest during NYS tax disputes?

Penalties and interest are common when disputes are unresolved or delayed. A tax attorney can evaluate penalties and seek relief through appropriate defenses or negotiations with the tax authority. Budgeting for possible penalties helps manage risk.

Do I need to collect and remit NYC sales tax for online sales?

Sales tax collection requirements apply to sales in New York State, including NYC residents. If you operate online and have nexus in NYS, you may be required to collect NYS and NYC sales tax. A local tax attorney can determine nexus and compliance steps.

Is Commercial Rent Tax applicable to my NYC business?

Commercial Rent Tax applies to certain business tenants in NYC based on location and rent size. The rules can be intricate and require precise calculations. Consult counsel to determine applicability and filing obligations.

How long does a NYS tax audit or appeal typically take?

Timeline varies by issue and complexity. Audits may take several months, while appeals can extend longer depending on the case. An attorney can provide a realistic timeline based on your specific circumstances.

What is a Real Property Transfer Tax and when is it due for NYC real estate?

Real Property Transfer Tax applies to transfers of real estate in New York, including NYC properties. It is usually due at closing or within a set period after transfer. A tax attorney can help with accurate calculations and timely filings.

What are the typical legal fees for a NYC tax attorney?

Fees vary by case complexity, hours spent, and the attorney's experience. Some matters are billed hourly, while others may use flat or capped arrangements. Discuss fee structures clearly during initial consultations.

5. Additional Resources

• Internal Revenue Service (IRS) - Federal tax collection, audits, and guidance for individuals and businesses. Functions include processing returns, issuing notices, and handling collections. IRS
• New York State Department of Taxation and Finance - Administers state taxes such as personal income tax, business taxes, and sales tax; provides forms, notices, and guidance. NYSDTF
• New York City Department of Finance - Administers local taxes and property taxes in NYC; handles notices, appeals, and payments. NYC Department of Finance

6. Next Steps

1. Identify the exact tax issue and governing jurisdiction. Clarify whether the matter is federal, state, or city level, and whether it involves income, sales, property, or business taxes. Timeframe: 1-2 days.
2. Gather all relevant documents and notices. Collect returns, notices, correspondence, valuations, and payment records. Timeframe: 3-7 days.
3. Research and shortlist NYC tax lawyers with relevant experience. Look for attorneys who handle NYS and NYC tax matters, with a track record in audits, appeals, and real property taxes. Timeframe: 1-2 weeks.
4. Schedule initial consultations and prepare questions. Discuss fees, strategy, and potential outcomes. Bring your documents and a list of concerns. Timeframe: 1-3 weeks.
5. Evaluate proposals and choose a lawyer or solicitor to hire. Compare experience, communication style, and cost structures. Timeframe: 1-2 weeks.
6. Engage counsel and sign a retainer agreement. Agree on scope, fees, and milestones. Timeframe: 1 week after choosing a lawyer.