While there are similarities between the IRS and state tax collections, they often operate quite differently than the IRS.  Some states even have multiple taxing authorities that administer the collection of each type of tax. State taxing authorities also differ from the IRS in that they are usually faster to collect on back taxes, and even more aggressive in their collection efforts, making levies, garnishments, and seizures commonplace.

Unlike the IRS, each state is limited to a finite annual budget that relies 100% on tax revenue.  If they don’t collect the taxes, they literally can’t pave roads or pay for schools. The IRS, however, is actually an arm of the U.S Department of Treasury which literally has the power to print money.  A state government does not, making them more desperate and aggressive to collect.

If you have a state tax liability or even a bank levy or wage garnishment, seeking professional guidance from a licensed tax professional is a wise first step to getting it fixed. Tax negotiations are a very bad “do it yourself” project, and penalties and interest rack up faster than the worst credit card.

Our licensed tax professionals specialize in arranging favorable terms with the state, while allowing our clients to focus on their own priorities.

Common State Tax Types and Issues

We deal with a wide range of state tax types and situations:

• Business taxes
  • Withholding taxes
  • Missing or unfiled tax returns
  • Bank levies
  • Accounts Receivable levies
  • Unemployment taxes
  • Workers compensation
  • Use taxes
  • Franchise taxes
  • 1099 issues
  • Liquor Licenses and Taxes
  • Conflicts with Revenue Officer
  • You can read more here about business tax relief.
• Personal taxes
  • Missing or unfiled tax returns
  • 1040 and income taxes
  • Sole prop and business-related taxes and filings
  • Wage garnishments
  • 1099 issues
  • Tax lien issues

State Tax Relief Options

Because there are so many factors affecting your rights and options under the tax code, it’s impossible to determine what strategy is best for you without a conversation. However, the following is a list of potential options for resolving your state tax issue.

Installment Agreements:

Most of our clients can’t pay all of their back taxes in the time frame or amounts that the state is demanding. We will get you the terms that you want, not that the state is offering.

Offer in Compromise:

Some states have a program similar to the IRS’s Offer in Compromise. Depending on your income and assets, you may qualify. The paperwork is always difficult and the state will not do you any favors in the process. That said, we have gotten many for our clients.

Currently Not Collectible Status:

Many of our clients at present don’t have the funds for an installment arrangement, though their assets or income make an Offer in Compromise impossible. For these clients, we may pursue a “CNC” status.

Corporate Shut Down:

The closure of a corporate entity sometimes provides the most benefit.

Corporate Formation:

Starting a new corporation with a new tax ID number, new identity, and a fresh start may make sense.