Question: I owe only $1,159 to the state. I received a Distraint Warrant and Writ of Execution. I’m a student receiving a Pell Grant and have shown very little income for the last three years. What measures are they likely to take and what can I do to get tax relief or get them to cease and go the hell away.
Spar & Bernstein New York tax attorney Sean Chi: Essentially, the documents you received are simply government required notices that must be issued informing you that the government can begin collections enforcement actions against you. Technically, this can include wage garnishments, bank levies, property foreclosure, and the seizure of certain assets. Realistically, based on the small amount of your liability, I would be a little surprised if they took any collection actions against you. Having said that, I am not familiar with your state’s Department of Revenue procedures, so they may very well take one or all of the steps stated above.
Considering how little you owe, seeking legal representation is likely not worth the effort. There is a slight chance you may be able to settle your tax, but again, considering the small size of your balance, you would have to convince the Department of Revenue that you will not be able to come up with $1,159 within the next few years (considering you are college educated, this may be difficult).
In my opinion, you should be able to set up an installment agreement for approximately $20 a month assuming you have little to no income. It would take approximately 5 years for you to pay off your tax liability at this rate, but you can always make larger payments. If for some reason you end up owing in excess of $3,000 in either state or federal taxes, I would then consider seeking legal representation. Our law firm may be able to assist you if this is the case.
