Delia Law P.C. - Federal Tax Law Firm

06/18/2026

Nearly 3 million New Yorkers will receive more than $2 billion in property tax relief this summer and fall, and many homeowners may not realize they qualify.

Governor Kathy Hochul recently announced that eligible homeowners across New York will receive benefits through the School Tax Relief (STAR) program. Most eligible homeowners are expected to receive between $350 and $600, while many seniors eligible for Enhanced STAR will receive between $700 and $1,500. Check deliveries have already begun and will continue throughout the summer and fall.

The STAR program provides property tax relief for eligible homeowners who use their property as their primary residence. Homeowners can track their benefit status and enroll in direct deposit through New York State's STAR program website.

As a tax law firm with licensure in New York, California and Maryland, we frequently speak with taxpayers who focus on federal taxes but overlook valuable state and local tax benefits. Property tax relief programs like STAR can provide meaningful savings, particularly for seniors and homeowners facing rising housing costs.

From a tax practitioner's perspective, this is a good reminder to periodically review available tax credits, exemptions, and relief programs. Many taxpayers miss out on benefits simply because they are unaware they exist or assume they do not qualify.

If you own a home in New York, it may be worth taking a few minutes to verify your eligibility and make sure you are receiving all available benefits.

Source: https://www.governor.ny.gov/news/governor-hochul-announces-nearly-3-million-new-yorkers-receive-over-2-billion-tax-relief

Governor Hochul announced that nearly three million New Yorkers across the state will receive over $2 billion in tax relief this summer and fall through New York's School Tax Relief (STAR) program.

06/17/2026

Most taxpayers are surprised to learn that tax debt can affect their ability to travel internationally.

Under Internal Revenue Code Section 7345, the IRS can certify certain taxpayers as having "seriously delinquent tax debt." Once certified, the IRS notifies the U.S. Department of State, which can deny a passport application, deny a passport renewal, or even revoke an existing passport.

In 2026, the IRS may certify a taxpayer when their legally enforceable federal tax debt exceeds $66,000. This threshold includes the combined total of back taxes, penalties, and interest. The dollar amount alone is not what triggers passport action. The IRS must also have taken formal collection steps, such as filing a Notice of Federal Tax Lien and exhausting administrative remedies, or issuing a levy.

The good news is that not every taxpayer with a balance due is at risk. Certain collection alternatives, including approved installment agreements, Offers in Compromise, and Currently Not Collectible status, can prevent or reverse passport certification.

As a tax law firm, we frequently speak with taxpayers who have never heard of the IRS passport certification program until they are planning international travel, applying for a passport, or attempting to renew one. For many, the issue comes as a complete surprise.

Passport issues are often avoidable when addressed early. Taxpayers with unresolved IRS debts should understand their collection status and explore available resolution options before travel plans are disrupted.

https://deliataxattorneys.com/irs-passport-suspensions/

Having an "IRS seriously delinquent debt" can result in passport suspensions. Need help in lifting the suspension? Contact us today!

06/16/2026

We regularly speak with taxpayers who discover an IRS tax lien only after being denied a mortgage, refinance, or business loan.

A Notice of Federal Tax Lien is one of the IRS's most powerful collection tools. Unlike a levy, which takes property or funds, a tax lien is the government's legal claim against your property when you fail to pay a tax debt. Once filed, it can attach to your current assets as well as assets acquired in the future.

Many taxpayers are surprised to learn that a federal tax lien can affect real estate transactions, business financing, credit decisions, and the ability to sell or refinance property. In some cases, it can create significant obstacles even when the taxpayer is actively trying to resolve the debt.

As a tax law firm, we often see taxpayers assume that once a lien is filed there is nothing they can do. That is not always true. Depending on the circumstances, options may include lien withdrawal, discharge, subordination, or resolving the underlying tax liability through an installment agreement, Offer in Compromise, or other collection alternatives.

From a tax practitioner's perspective, the worst mistake is waiting until a lien has already been filed. The earlier a taxpayer addresses a tax balance, the more options are generally available and the less disruptive the collection process becomes.

We previously wrote about IRS tax liens, how they work, and the options taxpayers may have to resolve them:

https://deliataxattorneys.com/irs-tax-lien-help-in-san-diego/

Gain valuable insights on IRS disputes, tax issues, and debt solutions. Read Delia Law's blog post 'IRS Tax Lien Help in San Diego'.

06/08/2026

California is considering a one time 5% billionaire wealth tax, while New York is exploring taxes on billionaires and high value second homes. These proposals may be different, but they point to the same trend.

A recently released expert report authored by leading tax scholars from UC Berkeley, UC Davis, and the University of Missouri analyzes California's proposed Billionaire Tax Act and argues that the measure is designed to withstand constitutional challenges while generating substantial revenue from approximately 200 of California's wealthiest residents. The proposal would impose a one time tax on billionaire wealth, payable over five years, with revenues earmarked for healthcare, education, and food assistance programs.

What caught our attention is that this proposal is part of a broader shift in state tax policy. In New York, policymakers are simultaneously discussing measures such as the proposed pied à terre tax on certain high value second homes and the Billionaire Mark-to-Market Tax Act. While these proposals differ in structure, they reflect a common theme: states are increasingly exploring ways to tax wealth, asset appreciation, and ownership rather than relying solely on traditional income taxes.

As a tax law firm with licenses in New York and California, we view these developments as important signals of where state tax policy may be headed. Whether these proposals ultimately become law is less significant than the fact that lawmakers are actively considering them.

From a tax practitioner's perspective, taxpayers with significant assets, business interests, investment holdings, or multiple residences should pay close attention. The conversation is increasingly moving beyond income and toward wealth, valuation, residency, and long term tax planning.

Source: Expert Report on the California 2026 Billionaire Tax, co-authored by Brian Galle, David Gamage, Emmanuel Saez, and Darien Shanske.

05/21/2026

We often speak with families who assume that when a loved one passes away, their IRS issues end too. In reality, tax filing obligations and IRS collection issues can continue long after death.

A recent Forbes article, “After Death, Income Tax Filing And IRS Debts Live On,” discusses the many tax responsibilities that can remain after a taxpayer passes away, including filing a final Form 1040, handling estate or trust income tax returns on Form 1041, addressing retirement account distributions, resolving IRS debts and liens, and understanding potential executor liability.

The article also highlights a common misconception that simply notifying the IRS someone is deceased resolves the matter. In many situations, estates, surviving spouses, trustees, or executors may still need to address unfiled returns, tax balances, inherited assets, and ongoing filing requirements.

As a tax law firm, we regularly see families overwhelmed by the tax and administrative issues that arise after the loss of a loved one, especially where there are unresolved IRS balances, trusts, retirement accounts, or years of unfiled returns involved. These matters can become significantly more complicated when they are ignored early on.

From a tax practitioner’s perspective, post death tax matters require careful coordination between legal, tax, and financial planning. Understanding filing obligations, deadlines, estate reporting requirements, and potential fiduciary liability is critical to protecting both the estate and surviving family members.

Source: Forbes, “After Death, Income Tax Filing And IRS Debts Live On” by Kelly Phillips Erb

The final 1040 could be just the beginning. What estate executors and survivors need to know about retirement accounts, refunds, back taxes, liens and Form 1041.

05/13/2026

Delia Law Managing Tax Attorney Dawn Delia was recently quoted in a Money.com article discussing how the IRS is beginning to use artificial intelligence and advanced analytics to assist with tax enforcement and audit selection.

The article, written by Pete Grieve, examines how the IRS is increasing its use of AI tools as staffing levels decline and enforcement strategies evolve. According to the report, the IRS is using technology to identify patterns, flag potential noncompliance, and prioritize cases for review. While human employees still make final audit decisions, AI assisted systems are increasingly being used to generate risk scores and identify returns that warrant closer attention.

In the article, Ms. Delia noted that despite all the discussion surrounding AI, the core audit triggers remain largely the same, including high income, complex returns, aggressive credits, unusually high deductions, and significant Schedule C activity. Ms. Delia also shared that while audit activity will likely increase as these systems develop, there has not yet been a major shift in the actual types of audits being conducted.

As a tax law firm, Delia Law continues to closely monitor how evolving IRS technology and enforcement strategies impact taxpayers, business owners, and cryptocurrency reporting. Accurate reporting, strong documentation, and proactive tax planning remain more important than ever as the IRS expands its use of advanced analytics and automated review systems.

Money.com article: “The IRS Is Testing AI Tools to Decide Who Gets Audited”

https://money.com/irs-ai-audits/

"Imagine an IRS employee sitting down to play chess against a potential tax evader, and now suddenly you have IBM Watson on your side telling you exactly how to play the chess game," former IRS Commissioner Danny Werfel tells Money. "That's what AI does."

05/12/2026

The IRS is becoming far more aggressive with enforcement, and we are seeing it firsthand with small business owners, gig workers, and taxpayers involved in cryptocurrency transactions.

A recent Forbes article highlighted the IRS’s increased enforcement focus following expanded funding and staffing initiatives. According to the report, the agency is concentrating on areas including large partnerships, high income taxpayers, offshore activity, digital asset transactions, and gig economy income reported through platforms like Venmo, PayPal, and crypto exchanges. The rollout of Forms 1099 DA and continued 1099 K reporting gives the IRS significantly more ability to cross check information against filed tax returns.

The article also notes that Schedule C filings for small business owners remain one of the highest scrutiny areas, particularly where income and deductions appear inconsistent with third party reporting.

As a tax law firm, we are seeing more taxpayers receive notices simply because the IRS now has access to better reporting and more sophisticated data matching tools. In many situations, taxpayers are not intentionally doing anything wrong, but incomplete reporting, poor recordkeeping, or misunderstanding crypto and payment app reporting rules can create major issues quickly.

From a tax practitioner’s perspective, this is the time for taxpayers to tighten up documentation, reconcile reporting forms carefully, and address gaps before the IRS does it for them. The cost of being proactive is almost always far less than dealing with an audit or collection issue later.

Source: Forbes, “The IRS Is Watching More Closely Now, Here’s The Checklist You Need” by Jason Kirsch

https://apple.news/AtH6Li1JFR_y9iBnFvc-0LQ

the risk of getting audited by the IRS is increasing

05/01/2026

Do you own a second home in New York City, a new proposed tax could significantly change what you owe each year.

A recent analysis from the New York City Comptroller’s office shows that the proposed pied à terre tax on high value second homes could generate around $500 million annually, but that number is far from certain. The report explains that while initial estimates reach roughly $510 million, actual collections could drop closer to $340 million to $380 million depending on how the rules are written, how many properties are rented, and how owners respond to the tax . Key uncertainties include how properties held in LLCs or trusts are treated, how market value is determined for condos and co ops, and whether owners change behavior by renting, selling, or converting properties to primary residences.

As a tax law firm licensed in New York, I see how often high value real estate is structured through entities and layered ownership, and those details will matter here. The difference between a primary residence, a rental, and a second home is not always straightforward, and that is exactly where exposure or planning opportunities can arise.

From a tax practitioner’s perspective, this is a reminder that the headline number is rarely the full story. With state and local tax changes, the real impact comes down to definitions, enforcement, and how taxpayers adapt once the rules are in place.

Source: https://lnkd.in/gMZ5JnAc

This link will take you to a page that’s not on LinkedIn

04/28/2026

If your ERC claim was denied and the clock is running out, the IRS just created a way to buy more time before you are forced into court.

The IRS announced a new, more streamlined process for certain taxpayers to request additional time after receiving a disallowance of an Employee Retention Credit claim. When the IRS issues a Letter 105 C or 106 C, taxpayers generally have two years to either resolve the matter administratively or file a refund suit. That deadline does not pause simply because you are working with Appeals. Under this new option, taxpayers with six months or less remaining can request an extension by submitting Form 907 through the IRS Document Upload Tool, giving both the IRS and the taxpayer more time to resolve the claim without immediate litigation.

As a tax law firm, we are seeing many ERC cases where taxpayers are still waiting on responses while their deadlines quietly approach. That creates real risk, because once the deadline passes, the ability to recover the refund can be lost entirely.

From a tax practitioner’s perspective, this is a practical and welcome change. It gives taxpayers a chance to preserve their rights without rushing into a lawsuit, but it still requires careful attention to timing and eligibility.

IR-2026-58, April 27, 2026 — The Internal Revenue Service today announced a new, streamlined way for taxpayers to extend the period of time for the IRS and the IRS Independent Office of Appeals to review a taxpayer’s response to a disallowance of an Employee Retention Credit (ERC) claim to avoid...

04/24/2026

We often hear from clients right after they file that they are relieved it is done, but that filing can reveal missed opportunities and shape your tax strategy going forward.

Recent tax law changes affecting 2025 returns filed in 2026 introduced new deductions for tip income, overtime compensation, certain car loan interest, and enhanced deductions for seniors. If any of these were overlooked, taxpayers may be able to recover overpaid taxes by filing an amended return using Form 1040 X within the applicable time limits. These provisions are temporary and currently set to expire in 2028, making it important to identify and act on any missed opportunities.

As a tax law firm, we often see taxpayers treat filing as the finish line, when it is really one of the most useful points to step back and evaluate what can be improved. A careful review can uncover deductions that were missed and provide a clearer path for planning ahead.

From a tax attorney's perspective, what you do after filing is just as important as the filing itself. Reviewing your return, adjusting withholding, and organizing documentation now can make a meaningful difference in both your current tax position and your next filing season.