If you owe back taxes, face an audit, or just received an aggressive collection notice from the IRS or New York State, you need to act now. Lexington Tax Group represents taxpayers in new york city, across new york state, and in all 50 states with the urgency your situation demands.
Immediate Tax Help in New York City & Across the U.S.
Lexington Tax Group helps individuals and small business owners dealing with federal and state tax problems resolve them before they escalate. Our highly skilled team of tax attorneys and enrolled agents handles cases involving both the internal revenue service and the york state department of Taxation and Finance, two agencies with distinct – and equally aggressive – enforcement powers.
Here are the most urgent problems we solve for clients in new york ny and nationwide:
- Wage garnishment by the IRS or NY State
- Bank levies and frozen bank accounts
- Federal tax liens and NY State tax warrants
- Unfiled returns across multiple years
- Aggressive collection notices and escalating penalties
Taxpayers can face civil penalties for failing to file tax returns, including a 5% monthly penalty for unfiled returns. The IRS can impose a maximum penalty of 25% for unfiled returns – and that’s before interest accrues.
Call Lexington Tax Group for a free, confidential consultation or request help online 24/7. We offer a 3-business-day money-back guarantee on the tax investigation phase, and we take fast protective steps to stop or delay garnishments and levies where possible.
Why You Need a New York City Tax Lawyer for IRS and New York State Tax Disputes
A york city tax attorney does more than handle federal tax disputes. Tax lawyers in New York City specialize in navigating complex tax regulations at the federal, state, and city level simultaneously. New York State and NYC have incredibly complex tax codes, and the enforcement tools available to NY authorities go well beyond what the IRS uses.
For example, New York State can:
- File tax warrants that function as civil judgments and create public liens on real and personal property
- Suspend your driver’s license if you owe $10,000 or more in past-due state tax debt
- Garnish wages and seize assets through warrant enforcement
Tax lawyers provide specialized legal advice protected by attorney-client privilege – communications with a tax lawyer are shielded in ways that conversations with a CPA or auditor are not. Tax attorneys help clients navigate IRS and state tax issues, and they offer deep knowledge of New York State and City tax laws that general practitioners lack. Tax lawyers often work in specialized boutique firms or large law firms, but what matters most is direct experience with the specific agencies involved.
You should hire a tax attorney rather than a general accountant when you’re dealing with six-figure back taxes, tax fraud allegations, offshore income, or a prior audit history. Lexington Tax Group coordinates with local new york counsel when court appearances or in-person representation before state agencies is required, while we manage strategy, negotiations, and IRS-facing work nationwide.
New York Tax Audits, Tax Court, and Administrative Appeals
The life cycle of a tax dispute in new york typically follows this path: notice, audit, appeal, and possible litigation in tax court. The IRS processes over 230 million tax returns annually, and an IRS audit reviews the accuracy of reported financial information using computerized protocols to identify discrepancies.
The main types of audits affecting NYC taxpayers include:
| Audit Type | Scope | Common Targets |
|---|---|---|
| Correspondence | Mail-based, narrow | Single-issue 1099 mismatches |
| Office | In-person at IRS office | Multiple income sources |
| Field | On-site examination | High-wealth individuals, cash businesses |
NY State also conducts residency audits examining domicile, statutory residency, and income allocation. The complexity of tax law necessitates specialization in areas such as IRS audits, and tax attorneys represent clients in tax disputes and audits at every stage.
Lexington Tax Group prepares clients by organizing records – bank statements, 1099 income documentation, cryptocurrency trading ledgers, and cash-based business receipts. Tax audits can lead to civil or criminal tax penalties, and tax disputes can lead to penalties up to 75% for fraud.
Taxpayers can appeal IRS audit conclusions within 30 days through a protest letter. Beyond that, IRS Office of Appeals conferences and New York State Bureau of Conciliation and Mediation Services provide alternatives before litigation. Tax attorneys can represent clients in U.S. Tax Court, and while Lexington Tax Group does not act as local NY trial counsel, we help clients and their litigation attorneys build the case strategy for U.S. Tax Court or New York Division of Tax Appeals.
They represent clients in audits, appeals, and litigation before tax authorities at every level.
Criminal Tax Matters and IRS Criminal Tax Investigations in New York City
There is a significant difference between civil tax disputes and criminal tax matters. Civil cases involve assessments and collection; a criminal tax investigation brings exposure to fines, imprisonment, and permanent records. Taxpayers can face criminal charges for unreported income, and the IRS intensifies investigations into unfiled tax returns and foreign accounts.
Typical triggers for criminal tax investigations in new york include:
- Repeated unfiled returns over many years
- False deductions for Manhattan or Brooklyn businesses
- Offshore accounts not reported under FBAR (which requires reporting of foreign bank accounts exceeding $10,000) or FATCA (which mandates U.S. taxpayers report foreign financial assets over $50,000)
- Payroll tax evasion and trust fund recovery penalties
- Fabricated real estate or estate losses used to offset taxable income
They defend individuals and businesses facing criminal tax investigations, and tax attorneys can assist with compliance for offshore accounts. Lexington Tax Group’s role in early-stage defense includes identifying red flags in IRS letters, shaping responses, and coordinating with New York-based criminal tax defense attorneys when an irs agent from IRS Criminal Investigation becomes involved.
Practical steps if you suspect a criminal inquiry:
- Never speak to IRS criminal investigators without counsel
- Preserve all records – originals, bank records, preparer communications
- Avoid amending returns blindly, as changes could be used against you
- Contact us immediately upon receiving any indication of criminal inquiry
Voluntary disclosure can help avoid criminal prosecution for unfiled returns. When timed correctly, proactive corrective filings can reduce the likelihood of indictment and shift cases back into the civil system. Voluntary Disclosure can prevent criminal tax prosecution for non-compliance when it happens before state or federal agencies detect the issue.
New York State–Specific Tax Issues: Residency, City Tax, and Small Business Compliance
New york state tax rules differ from other states in ways that catch even experienced practitioners off guard. NYC tax lawyers frequently handle complex state and local tax issues that out-of-state firms routinely miss. Tax lawyers focus on minimizing tax liabilities and ensuring legal compliance, and their roles include tax planning and resolving disputes with tax authorities.
Residency and domicile disputes are among the most contested. NY DTF examines where you maintain your permanent home, where your family lives, where you vote, and where your personal connections run deepest. A taxpayer who maintains a permanent place of abode in NY for substantially all of the tax year and spends over 183 days in the state can be treated as a statutory resident – even if they call Florida their domicile.
NYC personal income tax and the Unincorporated Business Tax on business income earned within the city are areas that out-of-state practitioners often overlook. Tax lawyers advise clients on complying with new tax laws and regulations, and many tax lawyers design estate plans to minimize estate and gift tax exposure. Tax attorneys counsel clients on tax consequences of business transactions, including corporate restructuring.
Common small business problems in NY include:
- Sales tax audits for restaurants and retail stores
- Payroll withholding compliance for employees in Manhattan, Brooklyn, and Queens
- Independent contractor versus employee classification disputes under strict NY tests
Although Lexington Tax Group is based in Florida, we regularly resolve new york city and york state tax controversies remotely, coordinating with local NY attorneys or a CPA when on-the-ground action or court appearances are needed.
IRS & New York State Tax Debt Relief Options for Individuals and Small Businesses
Many clients contact us when tax debt already feels overwhelming. The IRS has a 98% settlement rate in tax disputes, and both federal and state systems offer structured relief programs when you know how to use them.
Key federal options we handle:
- Offer in Compromise: In FY2025, 38,797 OIC proposals were submitted but only 5,464 were accepted – roughly a 14% acceptance rate. IRS offers in compromise require precise financial documentation and full compliance with filing obligations.
- Installment and partial-pay agreements: Structured payment plans allow you to pay down debt over time.
- Currently Not Collectible status: When finances show inability to pay after allowable expenses.
- Penalty abatement: First-time or reasonable cause abatement to reduce penalties and interest.
Tax lawyers help with corporate restructuring and capital markets transactions, and these same analytical skills apply when structuring relief for corporations and small businesses.
New york state relief tools include payment plans with the york state department of taxation and finance, negotiated settlements in hardship situations, and requests to reduce penalties where state policy allows. We work to resolve bank levies, tax liens recorded in New York County, wage garnishments, and passport issues arising from seriously delinquent IRS debt.
Lexington Tax Group evaluates ability to pay using concrete finance details – income, rent, childcare, student loans – tailoring solutions for NYC’s higher cost of living compared with other states.
Working with Lexington Tax Group: Process, Protection, and Nationwide Reach
You do not have to face the IRS or new york state alone. Our award winning team of tax attorneys, enrolled agents, and experienced support staff handles every step. Many tax attorneys have over 30 years of experience, and that knowledge shapes every strategy we build.
Here’s the step-by-step client journey:
- Free consultation: Phone or virtual assessment of your situation – IRS, state, or both
- Signed engagement: Defining scope across federal and state matters
- Three-business-day investigation: Transcript analysis, compliance check, identification of relief options
- Written resolution plan: Showing choices, favorable outcomes, timelines, and costs
Our firm communicates directly with IRS and, where authorized, with NY tax authorities so clients no longer have to handle calls and letters themselves. We provide guidance at every stage and assist with everything from responding to a certain word in a notice to defending against several actions simultaneously. Our security solution for your financial future starts the moment you engage us.
We represent individuals and small business owners in every state with a particular depth of experience in new york state tax laws. Our tax relief services are comprehensive and designed to protect you whether you’re in york city, upstate NY, or anywhere else in the country.
The IRS audits over 230 million tax returns annually. Don’t let a notice, a page from the IRS, or a state warrant trigger a crisis you could have prevented. Whether you need a law firm to prove your case in litigation, accept a settlement, or resolve a dispute before it reaches that point – contact Lexington Tax Group today. Our lawyers and attorneys are ready to assist, and the difference between acting now and waiting could be the difference between relief and escalation into tax court or a criminal tax investigation.