New York City Business Tax Attorneys

Businesses in New York operate within a layered system of tax regulations that can become overwhelming. Federal, state, and city tax codes form a complex network of compliance requirements that change frequently, increasing the risk of penalties if not properly managed.

Tax issues can cause more than financial setbacks. They may disrupt operations, strain cash flow, and place added pressure on business owners and their leadership teams. A minor oversight can quickly escalate into a serious legal or financial problem.

At Torres & Zheng at Law, P.C., we understand these challenges. Our law firm helps New York businesses avoid common tax pitfalls and provides strategic representation when disputes arise. We offer both preventive guidance and legal defense in matters involving the Internal Revenue Service (IRS), the New York State Department of Taxation and Finance, and the NYC Department of Finance.

Work With The Renowned New York City Business Tax Attorneys At Torres & Zheng at Law, P.C.

Torres & Zheng at Law, P.C. is known for its legal insight, proven track record, and commitment to trustworthy business tax counsel. We have years of experience providing practical solutions for companies navigating tax matters at the federal, state, and local levels.

We Can Help With Federal, State, and Local Tax Issues

Our attorneys have experience handling complex tax obligations for businesses across New York. We help clients reduce liability related to income, sales, property, and employment taxes. Our services include strategic planning, compliance oversight, and dispute resolution when challenges arise.

International and Cross-Border Tax Services

For globally operating businesses, we offer support with cross-border and multinational tax matters. Our services include guidance on tax treaties, transfer pricing, foreign tax credits, and compliance with both IRS and international tax authorities. We assist U.S. and foreign entities in reducing global tax exposure while managing regulatory risk.

Hear From Business Owners Who Have Partnered With Our Business Law Attorneys

“Torres Business Law is amazing! I was recently audited, and everything went smoothly because they helped me set up my business and taught me how to handle my accounting. I definitely would’ve been in trouble if I hadn’t worked with them. Highly recommend.” — Shalene M.

“Nick and Qiqi are by far the best business lawyers I’ve ever worked with. Their depth of expertise in business law is unmatched, and they approach every case with both sharp legal insight and a strategic mindset. Whether it’s navigating complex contracts, addressing corporate structure, or offering guidance during high-stakes negotiations, they consistently deliver thoughtful, thorough, and effective solutions. What truly sets them apart, however, is their care and dedication beyond the legal work. They take the time to understand not just the business, but also the people behind it. I always feel like I’m not just getting excellent legal representation, but also trusted partners who genuinely want to see me and my ventures succeed. Working with them has been an invaluable experience, and I can’t recommend them highly enough to any entrepreneur or business owner seeking not just legal excellence, but a supportive, reliable team by their side.” — Ada H.

Tax Services Our Attorneys Can Assist Your Business With

Torres & Zheng deliver full-spectrum tax counsel to business clients throughout New York’s five boroughs.

Tax Planning and Strategy

We help reduce your business’s tax liability by advising on entity structure, reorganizations, and transaction planning. Our approach focuses on identifying lawful opportunities to lower tax exposure while staying compliant with all applicable laws.

Tax Controversy and IRS Dispute Tax Resolution

We represent businesses during audits, tax appeals, and tax litigation. Our attorneys manage communications with tax authorities, compile supporting documentation, and develop strategies to resolve disputes efficiently.

Transactional Tax Guidance for Businesses and Foundations

We advise on tax implications in mergers, acquisitions, reorganizations, and nonprofit formations. Our attorneys assess transaction structures to recommend tax-efficient approaches that align with your business goals.

Employee Benefits and Executive Compensation Support

We advise on tax-efficient structuring of employee benefits and executive compensation plans to help your business attract and retain talent while managing tax obligations effectively.

Tax Policy and Regulatory Advocacy

We monitor tax policy developments and assist clients in interpreting new tax laws and regulations. Our attorneys provide strategic guidance to help businesses adapt to legal changes and participate in relevant regulatory advocacy when appropriate.

Litigation and Mediation in Tax Matters

We handle all stages of tax litigation, from early negotiations through trial and appeal. We also offer mediation services to help resolve disputes efficiently when possible. Our attorneys focus on protecting your business interests throughout the process.

What Is NYC Tax Law?

New York City tax law includes city-specific rules for personal income, business, sales, use, payroll, and mobility taxes. These local rules operate alongside New York State tax obligations but have their own rates, deadlines, and credit structures. New York City’s tax system supports municipal services and contributes to the city’s broader economic framework.

What Is New York State Tax Law?

New York State tax law governs personal and corporate income taxes, sales and use taxes, and certain industry-specific fees. The state uses a nine-bracket income tax system (ranging from 4% to 10.9%) and applies credits, relief provisions, and surtaxes for high-income earners. Payroll taxes also vary by region, particularly within the Metropolitan Commuter Transportation District. Because tax laws change often, businesses operating in New York should regularly review compliance requirements.

What Is the Difference Between a Tax Attorney and a CPA?

Tax attorneys and Certified Public Accountants (CPAs) serve different functions in managing business tax matters. Tax attorneys hold a Juris Doctor (JD) and are licensed by the state bar to provide legal representation, prepare legal documents, resolve disputes, and advise on complex tax planning. Communications with tax attorneys are protected by attorney-client privilege.

CPAs focus on tax return preparation, financial reporting, and accounting compliance. While CPAs are valuable for financial management and day-to-day tax filings, they cannot provide legal advice or represent clients in court.

Choosing Between a Tax Attorney and CPA

You should choose a tax attorney when:

• You are facing an IRS audit or investigation.
• You need legal representation for a tax dispute.
• You are planning complex business structures with significant tax implications.
• You need to negotiate a settlement with federal or state tax authorities.
• You want attorney-client privilege for sensitive legal communications.

You should choose a CPA when:

• You need to prepare standard tax returns.
• You are managing ongoing financial reporting and bookkeeping.
• You need general guidance on tax compliance.
• You are handling routine accounting or payroll matters.

Common Tax Issues Faced by New York Business Taxpayers

New York businesses often face challenges complying with multiple city tax obligations, including the Business Corporation Tax (BCT), General Corporation Tax (GCT), Unincorporated Business Tax (UBT), and Banking Corporation Tax. Each applies based on the company’s legal structure and income sources, creating complexity for business owners managing filing, payment, and reporting requirements.

Payroll Tax Problems

Failing to deposit employment taxes on time can result in steep penalties, asset seizure, and personal liability under the Trust Fund Recovery Penalty. These taxes are held in trust for the government, making enforcement a top priority for tax authorities.

Unfiled Tax Returns

Unfiled tax returns can quickly lead to mounting penalties and enforcement action. Even if records are incomplete, non-filing often creates more serious issues than filing late or with errors.

Back Taxes and IRS Penalties

New York businesses face a 5% monthly late filing penalty (up to 25%) and a minimum $100 fine after 60 days. Late payments accrue 0.5% monthly penalties (up to 25%) plus daily compounding interest. Additional penalties may apply for underreporting income, negligence, or fraud.

Tax Liens and Levies

Unpaid taxes can lead to liens on business assets, which may limit access to credit, delay property sales, or impact financing. A levy permits the IRS or state to seize bank accounts, receivables, or other property to collect the debt.

Asset Seizure

In serious cases, tax authorities may seize business assets such as equipment, inventory, real estate, or vehicles to satisfy outstanding tax liabilities.

Tax Audits

Businesses may face audits ranging from mail-based reviews to in-depth examinations. Without proper representation, audits can lead to additional tax assessments and penalties.

Personal Liability Risks

Business owners and responsible persons can be held personally liable for certain tax debts, increasing exposure beyond the business entity.

Complex Compliance Requirements

Managing compliance with New York’s layered federal, state, and local tax rules presents ongoing challenges for businesses, particularly those with evolving operations or multi-jurisdictional exposure.

What Happens if I Don’t File My NYC Tax Returns on Time?

Missing a New York City tax return deadline can result in escalating penalties and daily interest charges from the NYC Department of Finance. These consequences may include substantial fines, enforcement actions, and disruption to your business operations.

Understanding Tax Penalties and Relief Options

The New York City tax penalty structure includes:

• Late filing penalty: 5% per month (up to 25%). If more than 60 days late, the minimum penalty is $100 or 100% of the unpaid tax, whichever is less.
• Late payment penalty: 0.5% per month (up to 25%) plus daily compounding interest.
• Interest charges: Adjusted quarterly and compounded daily (e.g., 9.5% for Q1 2025; check the NYC Department of Finance website for current rates).
• Underreporting penalty: 10% if tax is understated by more than $2,000 or 10%.
• Estimated tax underpayment penalty: Federal short-term rate plus 5.5 percentage points (minimum 7.5%).

Tax relief options include penalty abatement for reasonable cause, installment agreements, and disaster-related relief when applicable. Early legal intervention often increases your chances of penalty reduction and a workable resolution.

Why You Might Face a Federal Tax Audit in New York

The IRS selects tax returns for audit using a computerized scoring system that flags potential discrepancies or signs of underreporting, often cross-referencing third-party data and known risk indicators.

Common audit triggers include:

• Discrepancies between reported income and third-party records (e.g., W‑2s, 1099s)
• Mismatches between reported income and lifestyle or spending patterns
• Recurring business losses or unexpected financial downturns
• Clerical errors or calculation mistakes
• Unfiled returns or omitted income
• Information submitted by whistleblowers

Types of IRS Tax Audits

If your business is selected for an IRS audit, the process can vary widely depending on the type of review. Some audits are limited to verifying a few items by mail, while others involve in-person visits and a full examination of your records. Understanding the different types of audits can help you prepare appropriately and avoid unnecessary complications.

A correspondence audit is conducted entirely by mail and typically involves verifying specific items on a tax return. It is the least intrusive form of audit but can escalate if not resolved promptly.

An office audit takes place at an IRS office and requires a more detailed review of your records. You may be asked to bring receipts, bank statements, or other documentation to support your return.

A field audit is the most comprehensive. An IRS agent visits your business or home to examine financial records and operations in depth. This type of audit carries the highest risk for expanded liability.

A Taxpayer Compliance Measurement Program (TCMP) audit is the most detailed. It requires complete substantiation of every item on your return and is often used for research purposes rather than enforcement.

What Is the Statute of Limitations on Tax Audits?

In most cases, the IRS has three years from the date a return is filed to conduct an audit. However, if income is underreported by more than 25%, the audit window extends to six years. There is no time limit if the IRS suspects fraud or if a return was never filed.

New York State follows a similar three-year statute of limitations for most business taxes, including sales tax. To stay protected, it is advisable to keep your business tax records for at least seven years.

What Steps Should I Take if I Receive an IRS Audit in New York?

If your business is selected for an IRS audit, responding carefully and strategically can help minimize risk and protect your financial interests. The following steps are essential:

• Carefully review the audit notice to understand the type of audit, the specific issues involved, and the response deadline.
• Gather all relevant documentation for the tax years in question, including receipts, payroll records, and bank statements.
• Consult with a tax attorney before responding to the IRS or submitting any documents.
• Avoid direct communication with IRS auditors until you receive legal guidance.
• Provide only the documentation specifically requested in the audit notice.
• Maintain a formal record of all correspondence with the IRS, including letters and notices.

Keep in mind that IRS audit procedures are structured to detect discrepancies and increase assessments. Without legal representation, you risk expanding the audit scope or losing valid deductions.

Our attorneys work to help clients navigate audits with a proactive strategy and reduce the risk of unnecessary penalties, though outcomes vary depending on the facts of each case.

What Steps Will a Tax Lawyer Help Me Through if I Have an Audit?

At Torres & Zheng at Law, P.C., our attorneys offer clear, strategic guidance throughout every stage of an IRS audit. We take an active role in protecting your interests, minimizing penalties, and limiting disruption to your business. Here’s how we help:

• Our attorneys begin by reviewing the audit notice to determine its scope, focus, and deadlines.
• We assist you in gathering and organizing all relevant documentation, limiting disclosures to only what is legally required.
• We act as your formal representative in all communications with the IRS, shielding you from direct contact.
• We prepare you for any in-person meetings or interviews with auditors, so you feel confident and informed.
• We develop legal strategies to support complex or high-risk deductions that may be questioned.
• We work to keep the audit narrowly focused and push back against attempts to expand it to other tax years.
• We challenge inaccurate assessments using the IRS’s formal dispute procedures.
• If necessary, we prepare and file appeals to contest unfavorable audit outcomes.
• We negotiate with the IRS to reduce penalties, interest, or reach a fair settlement.
• If the case escalates, we are prepared to represent your business in U.S. Tax Court.

With Torres & Zheng at Law, P.C. managing your audit, you have a legal team that understands the process and knows how to respond effectively. Our goal is to protect your business and reduce long-term financial exposure.

Can the IRS Garnish My Wages to Collect Unpaid Taxes?

Yes, the IRS can garnish your wages through a process called a wage levy if you owe unpaid taxes. Unlike other creditors, the IRS does not need a court order. It can send a notice directly to your employer, requiring them to withhold part of your earnings and forward those funds to the government.

Wage garnishment continues until your tax debt is fully paid, the tax collection period expires, or you enter into an alternative arrangement with the IRS. In many cases, the garnishment leaves you with only enough income to cover basic living expenses.

At Torres & Zheng at Law, P.C., our attorneys can help you avoid or stop wage garnishment by taking immediate legal action. We assist clients in resolving garnishment through options such as:

• Negotiating an installment agreement with the IRS
• Submitting an Offer in Compromise, if you qualify
• Requesting Currently Not Collectible status for hardship cases
• Reviewing bankruptcy protections when appropriate (note: not all tax debts are dischargeable)

We work quickly to reduce financial pressure and advocate for a solution that protects your income and long-term stability.

Can I Handle NYS Tax Issues on My Own Without Professional Help?

Some routine tax matters may be manageable without legal assistance, but complex or disputed issues in New York State typically require professional support. Self-representation can lead to costly mistakes, especially when dealing with audits, penalties, or evolving tax regulations.

New York’s tax code contains thousands of provisions that change frequently. Without legal training, you may miss key deadlines, overlook exemptions, or misinterpret compliance requirements. These errors can result in substantial penalties, accrued interest, and extended disputes with the New York State Department of Taxation and Finance.

At Torres & Zheng at Law, P.C., we help businesses address tax problems before they escalate. Our attorneys evaluate your situation, explain your options, and deliver legally sound strategies that protect your interests and reduce long-term risk.

Can the IRS Forgive My Debt?

The IRS offers limited debt relief options for taxpayers who cannot afford to pay their full tax liability. The two most common programs are Offer in Compromise (OIC) and Currently Not Collectible (CNC) status.

An Offer in Compromise allows eligible taxpayers to settle their debt for less than the full amount owed. To qualify, you must demonstrate that:

• You are unable to pay in full through your assets or future income.
• Payment would create serious financial hardship.
• There is doubt as to the accuracy of the tax amount assessed.

The IRS reviews your income, expenses, asset equity, and payment potential before making a decision. Because acceptance rates are relatively low, submitting a well-prepared application is critical.

Currently Not Collectible status provides temporary relief by suspending collection efforts when a taxpayer cannot afford to pay without sacrificing basic living needs. Although penalties and interest continue to accrue, this option can offer financial breathing room.

At Torres & Zheng at Law, P.C., we help clients determine which IRS relief programs may apply and guide them through the complex application process. Our attorneys prepare the necessary financial disclosures, negotiate on your behalf, and advocate for outcomes that reduce long-term tax burdens.

Can I Have Tax Issues if I Own Cryptocurrencies?

Yes, owning or transacting in cryptocurrency can lead to complex tax issues. Both the IRS and the New York State Department of Taxation and Finance treat virtual currencies as property, not currency. This means that each time you buy, sell, trade, or use cryptocurrency, you may trigger a taxable event.

Reportable cryptocurrency transactions include:

• Selling crypto for U.S. dollars or other fiat currency
• Trading one cryptocurrency for another
• Making purchases using cryptocurrency
• Receiving cryptocurrency as payment for services
• Earning crypto through mining or staking rewards

New York imposes additional documentation and reporting obligations beyond federal requirements. Since 2020, the IRS has included explicit cryptocurrency questions on tax forms and increased enforcement efforts in this area. Failing to accurately report crypto activity may result in:

• Accuracy-related penalties of up to 20% of the unpaid tax
• Interest on outstanding balances
• Fraud penalties of up to 75% for willful noncompliance
• Longer audit lookback periods for misreported assets

At Torres & Zheng at Law, P.C., we assist businesses and individuals with cryptocurrency tax compliance and dispute resolution. Our attorneys stay informed on evolving tax policy and help clients properly document, report, and manage digital asset-related risks.

How Can a Business Tax Attorney in New York Help My Company?

At Torres & Zheng at Law, P.C., our business tax attorneys assist New York companies with all aspects of tax compliance, planning, and dispute resolution. We help clients understand and manage obligations under federal, state, and local tax laws while identifying legal strategies to reduce exposure and support business goals.

Unlike accountants, our attorneys offer legal representation in court, protect confidential communications through attorney-client privilege, and create enforceable tax planning structures. This legal insight becomes especially important when your business faces audits, penalties, or regulatory scrutiny.

For businesses operating across jurisdictions or with evolving operations, we coordinate compliance across taxing authorities and work to avoid duplicate taxation. Our focus is on protecting your bottom line and promoting long-term stability through sound legal strategy.

Protect Your Business With Trusted Tax Counsel in New York

Legal issues can escalate quickly, and waiting until the IRS contacts you may limit your options. At Torres & Zheng at Law, P.C., we offer proactive legal support for businesses facing audits, compliance risks, or ongoing tax liabilities.

Our attorneys serve businesses throughout New York City with tailored solutions for federal, state, and local tax matters. Whether you are dealing with an audit, seeking penalty relief, or planning to reduce future tax exposure, we’re here to help.

Contact us today or call us at 917-277-3479 to schedule a confidential consultation. We will assess your situation, explain your legal options, and help you move forward with confidence.