NYS OIC help

[schirallicpa]

Has anyone in this group dealt with NYS with an OIC? My conundrum is this: NYS sales tax that was associated with a defunct business is attached to an individual. The forms imply that a separate DTF4 and DTF5 be filed if a business is involved. The business doesn't exist anymore. I'm not sure if I understand why I need both submissions since the sales tax is being pursued at the individual level. The person who hired me says she was told she needed to file the business OIC.

Does anyone have experience with this?

[Catherine]

I have no experience, but may have a similar question in a few weeks, so I'm following this thread.

[KATHERINE]

On 9/19/2022 at 2:58 PM, schirallicpa said:

Has anyone in this group dealt with NYS with an OIC? My conundrum is this: NYS sales tax that was associated with a defunct business is attached to an individual. The forms imply that a separate DTF4 and DTF5 be filed if a business is involved. The business doesn't exist anymore. I'm not sure if I understand why I need both submissions since the sales tax is being pursued at the individual level. The person who hired me says she was told she needed to file the business OIC.

Does anyone have experience with this?

so, I think you need to file two separate OIC.  The business one offers $1, because the business is closed, and the business cannot afford any amount, then the responsible person offer whatever amount realistic.    Thank you!

[schirallicpa]

I posted this question on FB in a couple of groups that I am in.  The answer is basically, you must file both - as Katherine indicated.  But ultimately, the offer has to be for the amount of the sales tax still due.  Similar to payroll tax, it's someone else's money that was collected in trust.  So we may be able to avoid the penalties and interest, but the sales tax cannot be compromised. 

[Sage]

Similar case for my client. May I ask how much was the sales tax liabilities (excluding interest and penalties) and was it from C Corp? How long was it ago? 

[schirallicpa]

The case was a sole proprietorship and the total money was around $25000 -Sales tax and I&P.  I don't remember the actual tax amount now, but I think around 14K.   It took several months but finally got a settlement for $5000 in the fall of this year.  About 15 month process.  I had to fill out paperwork under the EIN number as all zeros and then paperwork under individuals SS# providing her personal assets and income.  

[Sage]

Thank you for sharing! Does anyone know if NYS OIC will be approved if Taxpayer own a primary resident that is completely paid off, worth $600k? Retired, no income, no other debt, no big saving. Around $60k with interest and penalty. The originally sales tax was $8k. If OIC is not going to work out, does anyone know other way to waive the interest and penalty. Thank you for any insight and suggestion. 

[Sage]

17 hours ago, schirallicpa said:

The case was a sole proprietorship and the total money was around $25000 -Sales tax and I&P.  I don't remember the actual tax amount now, but I think around 14K.   It took several months but finally got a settlement for $5000 in the fall of this year.  About 15 month process.  I had to fill out paperwork under the EIN number as all zeros and then paperwork under individuals SS# providing her personal assets and income.  

Just another follow up question. If the business doesn’t exist anymore for over 5 year, do last 3 year returns, credit report and bank statement still need to be provided with the OIC? Thank you!