Law Firm in Brooklyn NY : Tax Firm Services

Federal tax obligations include filing annual income tax returns with the Internal Revenue Service, paying estimated quarterly taxes if self-employed, and maintaining accurate records for at least three years. New York State imposes additional income tax requirements and sales tax obligations for businesses. Local tax jurisdictions in Brooklyn may also impose property taxes, business taxes, or other assessments. A law firm in Brooklyn NY can help you understand which obligations apply to your specific situation and develop a compliance strategy that minimizes your tax burden while maintaining full legal compliance.

Failure to comply with tax obligations results in substantial penalties and interest charges. The IRS imposes accuracy-related penalties, failure-to-file penalties, and failure-to-pay penalties that compound over time. New York State adds its own penalties on top of federal assessments. Interest accrues daily on unpaid taxes, often doubling or tripling the original tax debt within several years. Consulting with a law firm in Brooklyn NY early can help you avoid these consequences or negotiate relief if penalties have already been assessed.

An IRS audit begins with a notice requesting specific documentation or clarification of reported items. Your response must be timely, accurate, and strategically presented to support your tax position. A law firm in Brooklyn NY can prepare audit responses, gather supporting documentation, and communicate with tax examiners on your behalf. If the audit results in a proposed assessment you disagree with, your attorney can file a protest with the IRS Appeals Office. Professional representation at this stage often results in reduced assessments or complete resolution in your favor.

If you owe back taxes and cannot pay in full, several settlement options exist. An offer in compromise allows you to settle tax debt for less than the full amount owed, though strict eligibility requirements apply. Installment agreements permit payment over time with manageable monthly payments. Currently not collectible status temporarily pauses collection efforts if you face financial hardship. A law firm in Brooklyn NY can evaluate which option best fits your circumstances and negotiate with tax authorities on your behalf.

The Eastern District of New York, which includes Brooklyn, follows specific procedural rules for tax litigation and criminal cases. Federal tax cases filed in this district typically involve disputes with the IRS over substantial tax assessments or criminal investigations into tax fraud or evasion. The court requires compliance with Federal Rules of Civil Procedure and Federal Rules of Criminal Procedure, with local rules specific to the Eastern District. A law firm in Brooklyn NY with experience in this federal district understands motion practice, discovery requirements, and trial procedures particular to this court. Filing deadlines, briefing schedules, and courtroom protocols differ from state courts, making local expertise essential for effective representation.

New York State tax disputes may be resolved through the Department of Taxation and Finance administrative process or through New York Tax Court. Tax Court handles disputes involving New York State income tax, sales tax, and other state taxes. The court applies New York tax law and considers both factual and legal issues in tax assessments. A law firm in Brooklyn NY can represent you in Tax Court proceedings, file necessary petitions, and present evidence supporting your tax position. Administrative appeals before the Department of Taxation and Finance offer an alternative resolution path that may be faster and less formal than court litigation.

The structure of your business entity significantly affects your tax obligations. Sole proprietorships, partnerships, S corporations, and C corporations each have distinct tax consequences. A law firm in Brooklyn NY can analyze your business operations and recommend entity structures that optimize tax efficiency while meeting your operational and liability protection goals. Changing entity structure mid-year or retroactively requires careful planning to avoid unintended tax consequences. Professional guidance ensures your business structure aligns with your financial objectives and tax situation.

Maximizing legitimate business deductions reduces your taxable income and tax liability. Common deductions include home office expenses, vehicle costs, professional services, and business equipment. Proper documentation and record keeping support deduction claims during audits. A law firm in Brooklyn NY can advise on which expenses qualify as deductible, how to properly document them, and strategies for organizing records to withstand IRS scrutiny. 

The following table outlines common business deduction categories and documentation requirements: