The IRS determined I owe tax for unemployment wages from 2015. According to them I owe $1270. Is there anything I can do? I never received a W2 from NY state.

[patriciag0215]

Can I get the amount reduced?

[DoninGA]

Did you receive unemployment compensation in 2015 from the state of New York?  If so, that is taxable income and has to be reported on a federal tax return.  The state should have mailed you a Form 1099-G for the compensation.  There may also be a copy of the form on the state website for unemployment.

[patriciag0215]

I owe the money, can I have it reduced?  Will they allow installments?

[Critter]

You can always pay in installments but a reduction is not likely.  Make a partial payment with the notice now  and then they will send you back installment agreement forms to fill in.

[Critter]

Most states now require that you download the 1099-G for the unemployment paid to you ... just because they didn't mail you a form doesn't make the income less taxable.  So the IRS is telling you that you missed this income and recomputed your return.  Unless you can show that you didn't receive the unemployment income at all you really have no leg to stand on.