1. Which Tax Agency Has Authority over Your Dispute?
Federal, state, and city taxes follow separate procedures. The tax involved and issuing agency determine the review forum, even when authorities examine the same transaction.
IRS Notices and New York State Tax Assessments
The IRS administers federal income and employment taxes. New York State handles state income and sales taxes, including NYC personal income tax. City residents disputing personal income tax therefore generally use state protest procedures. A federal adjustment may trigger separate state reporting duties. Attorneys examine the affected years and outstanding obligations. Tax lawyer services in the U.S. address federal disputes, but an IRS resolution does not automatically settle a related state matter.
NYC Business Taxes and Property Assessments
The NYC Department of Finance administers the Unincorporated Business Tax (UBT). It applies to qualifying income earned by individuals, partnerships, and certain LLCs, subject to exemptions and exclusions. Holding or leasing real property for one's own account may qualify for an exclusion, unlike managing property as another person's agent. Attorneys examine actual activities and receipts rather than relying on entity classification. Real property tax assessment challenges generally proceed before the NYC Tax Commission, not the NYC Tax Appeals Tribunal.
2. How Can a Tax Lawyer Respond to an Audit or Collection Action?
A proposed assessment offers different options from a debt subject to collection. Legal work may involve challenging calculations, responding to agency demands, or reviewing personal liability.
Audit Defense and Disputed Transactions
Auditors may challenge deductions, receipts, payroll, or income allocation. Attorneys evaluate the findings against tax law and financial records. IRS audit defense may involve information requests, examination meetings, and proposed adjustments. For a business operating across several locations, disputed receipts may raise questions about where taxable activity occurred. Contracts, invoices, and allocation schedules can establish the relevant facts.
Collection Actions and Personal Tax Liability
Agencies may pursue liens, levies, or other authorized collection procedures after assessment. Collection appeals differ from challenges to the original tax calculation. Under 26 U.S.C. §6672, federal trust fund tax liability may extend to a responsible person who willfully fails to collect or pay over required taxes. New York Tax Law §§1131 and 1133 separately govern unpaid sales-tax liability. Certain partners, LLC members, and responsible persons may face liability under rules different from the federal willfulness test. Attorneys examine tax periods, liability grounds, and notices before evaluating tax debt resolution.
3. Where Should a Tax Appeal Be Filed and by When?
Filing periods depend on the controlling notice and statute. Deficiency petitions, state protests, city determinations, and refund denials may carry different deadlines.
| Tax notice | Review forum | General filing period |
|---|---|---|
| IRS Notice of Deficiency | U.S. Tax Court | 90 days, or 150 days if addressed abroad |
| Qualifying NYS tax notice | BCMS or Division of Tax Appeals | Generally 90 days |
| NYC business-tax determination | City conciliation or NYC Tax Appeals Tribunal | 90 days, or 150 days if addressed abroad |
| Certain NYC business-tax refund denials | City conciliation or NYC Tax Appeals Tribunal | Generally two years |
IRS Notice of Deficiency
- Review forumU.S. Tax Court
- General filing period90 days, or 150 days if addressed abroad
Qualifying NYS tax notice
- Review forumBCMS or Division of Tax Appeals
- General filing periodGenerally 90 days
NYC business-tax determination
- Review forumCity conciliation or NYC Tax Appeals Tribunal
- General filing period90 days, or 150 days if addressed abroad
Certain NYC business-tax refund denials
- Review forumCity conciliation or NYC Tax Appeals Tribunal
- General filing periodGenerally two years
These periods apply to qualifying proceedings. Other notices may require different responses.
Federal Deficiency Petitions
Under 26 U.S.C. §6213(a), an eligible Notice of Deficiency generally permits a Tax Court petition before payment of the disputed deficiency. The period runs from mailing, subject to statutory rules. Petitions may be filed electronically through DAWSON. An examination letter alone does not establish Tax Court jurisdiction.
New York State Tax Protests
Qualifying notices may be challenged through the Bureau of Conciliation and Mediation Services (BCMS) or the Division of Tax Appeals. Personal income-tax deficiency notices and sales-tax determinations generally carry a 90-day period, extended to 150 days when addressed outside the United States. Other notices may differ. Tax dispute representation may involve preparing protests, reviewing calculations, and presenting evidence.
NYC Business-Tax Appeals
A qualifying Notice of Determination may be challenged through city conciliation or the NYC Tax Appeals Tribunal. Certain UBT and corporate-tax refund denials carry a two-year appeal period. The Tribunal currently does not accept electronic filing of its forms. Petitioners must follow its filing and service rules.
4. What Should an Attorney Check before Filing?
A review begins with the disputed tax, named taxpayer, and supporting records. Earlier proceedings may determine which remedies remain available.
Tax Notices and Supporting Records
Relevant materials include:
- Agency notices and envelopes showing mailing details.
- Original and amended returns for the affected periods.
- Contracts, invoices, bank statements, and accounting records.
- Earlier protests, payment confirmations, and agency decisions.
These documents help establish the disputed amount and taxpayer identity. Business ownership alone does not establish personal liability under every tax statute.
Authorization and Filing Errors
IRS Form 2848 authorizes specified IRS representation, not appearances before every state or city tribunal. New York State and the NYC Tax Appeals Tribunal have separate requirements. Attorneys should verify deadlines, signatures, delivery methods, and proof of filing. Informal discussions or amended returns may not preserve protest rights.
5. Frequently Asked Questions
Can a Tax Lawyer Take Over After an Accountant Prepared My Return?
An attorney can examine disputed legal positions, review workpapers, and represent the taxpayer when authorized. The accountant may continue explaining calculations. Earlier accounting communications do not automatically become privileged when a lawyer joins the case.
How Much Does a Tax Attorney in Brooklyn Charge?
Fees depend on the tax periods, agencies, disputed issues, and hearing requirements. Attorneys may charge hourly or offer fixed fees for defined services. The written agreement should identify the scope, billing terms, and additional expenses.
6. Discuss an IRS, State, or NYC Tax Dispute
A tax lawyer serving Bushwick can review an audit notice, assessment, refund denial, or collection demand against applicable filing rules. Our firm's attorneys can evaluate liability, examine supporting records, prepare submissions, and assess available appeal or collection procedures. A case review should include complete notices, relevant returns, and financial records.
12 Nov, 2026
