More Individual N.Y. Taxpayers Qualify For New Offer in Compromise Program

ALBANY, N.Y.—The New York State Department of Taxation and Finance released a guidance memo Aug. 31 explaining a new state law that allows more individual taxpayers to qualify for the state’s offer in compromise program (TSB-M-11(9)C).

The law, which took effect Aug. 17, allows individual taxpayers to participate in the program if they can prove that collection in full of a tax liability would cause an “undue economic hardship,” according to the memo. The program was previously limited to taxpayers who were bankrupt or insolvent.

“The offer in compromise program allows qualifying, financially distressed taxpayers the opportunity to ...