1. The Tax Notice Determines the Available Appeal Process
A taxpayer must identify the issuing agency and whether the letter permits a formal protest. Federal, state, and city authorities use different forums; responding to the wrong office may not preserve appeal rights.
Match the Tax to the Reviewing Agency
| Tax Dispute | Agency | Review Forum |
|---|---|---|
| Federal income tax | IRS | IRS Appeals or U.S. Tax Court |
| State income or sales tax | NYS Tax Department | BCMS or Division of Tax Appeals |
| Certain city business taxes | NYC Department of Finance | Conciliation Bureau or NYC Tax Appeals Tribunal |
| Property assessment | NYC Department of Finance | NYC Tax Commission |
Federal income tax
- AgencyIRS
- Review ForumIRS Appeals or U.S. Tax Court
State income or sales tax
- AgencyNYS Tax Department
- Review ForumBCMS or Division of Tax Appeals
Certain city business taxes
- AgencyNYC Department of Finance
- Review ForumConciliation Bureau or NYC Tax Appeals Tribunal
Property assessment
- AgencyNYC Department of Finance
- Review ForumNYC Tax Commission
New York State also administers New York City personal income tax. Those disputes generally follow state procedures, not the city's business tax tribunal.
Distinguish Audit Proposals from Formal Notices
An audit proposal may invite corrections or additional records. A Notice of Deficiency or Notice of Determination can start a statutory appeal period. Check the document's title, tax year, mailing date, and appeal instructions. Tax audits and adjustments covers the examination stage rather than a formal appeal.
2. Federal Tax Appeals Depend on the IRS Notice
A proposed federal adjustment may qualify for review by the IRS Independent Office of Appeals. A statutory deficiency notice instead creates a time-limited opportunity to petition the U.S. Tax Court without first paying the proposed deficiency.
Administrative Review before Assessment
IRS Letter 525 generally gives 30 days from the letter date to request an appeal. The taxpayer should identify disputed adjustments and provide tax returns, invoices, or other records supporting the objection. The protest format depends on the dispute. Related IRS audit defense information addresses examination requests.
Petitioning the U.S. Tax Court
Under 26 U.S.C. § 6213(a), the usual deadline is 90 days after the IRS mails a statutory Notice of Deficiency, or 150 days in qualifying overseas circumstances. The petition goes to the Tax Court, not the IRS. Continuing discussions or sending more records does not extend this deadline. Collection and refund disputes follow different rules.
3. State Tax Assessments Have Two Administrative Routes
An eligible state tax notice may be challenged through a conciliation conference or a formal hearing. The notice determines the available remedy and filing deadline; a Statement of Audit Changes alone generally does not confer formal protest rights.
Conciliation through BCMS
Taxpayers may request a Bureau of Conciliation and Mediation Services conference using Form CMS-1 or an available online procedure. Many income tax deficiencies and sales tax determinations carry a 90-day protest period, but exceptions apply. If conciliation fails, a Conciliation Order generally starts a separate period for petitioning the Division of Tax Appeals.
Hearings before the Division of Tax Appeals
A taxpayer may file Form TA-100 directly when authorized by the notice. The petition should specify the disputed findings and include supporting documents. Under New York Tax Law § 689(e), personal income tax petitioners generally bear the burden of proof, subject to exceptions. Multistate allocation issues may also involve state and local tax rules.
4. City Business Tax Disputes Follow a Separate Tribunal
The NYC Tax Appeals Tribunal hears disputes involving certain city taxes, not ordinary real property assessment challenges. The Department of Finance offers conciliation as an alternative first step.
Appealing a Business Tax Determination
A Notice of Determination generally allows 90 days to seek conciliation or petition the Tribunal; a 150-day period may apply when the notice is addressed outside the United States. A taxpayer should identify the contested adjustments and provide the relevant business records. After an unsuccessful conciliation, a further petition deadline applies.
Refund Denials and Tribunal Review
Certain corporation and unincorporated business tax refund denials permit a protest within two years of the Notice of Disallowance. Other covered city tax refund denials generally allow 90 days. Tribunal petitions must meet filing and service rules. Eligible parties generally have 30 days to seek Appeals Division review of an administrative law judge's determination.
5. Property Assessment Appeals Require Tax Commission Review
The NYC Tax Commission reviews eligible challenges to assessed value, tax classification, and exemptions. It does not set tax rates, and a request to correct property data with the Department of Finance does not replace a timely Tax Commission application.
Filing an Application for Correction
Property owners must use the form appropriate to their tax class and claim. Ordinary deadlines are March 1 for classes 2, 3, and 4, and March 15 for class 1, with calendar adjustments and exceptions. The Commission must receive the application by the deadline; revised notices and certain exemption claims may follow different rules.
Further Review and Supporting Evidence
Property owners should submit valuation records, comparable sales, or exemption documentation relevant to the claim. After a proper administrative application, some owners may seek judicial review under Real Property Tax Law Article 7; eligible owner-occupants may use Small Claims Assessment Review under § 730. Court filing deadlines differ from Tax Commission deadlines. See real property tax assessments for broader valuation issues.
Keep the notice, completed filing, supporting records, and proof of receipt. Informal discussions ordinarily do not stop a statutory appeal deadline.
21 Oct, 2026
