Alaska Taxing Information
Alaska is notable for having no individual or sales tax, but there remains a wide variety of taxes that the State collects.
If you disagree with the amount of your tax or tax-related penalty, you may request an informal meeting with an appeal officer. You must do so promptly, with the requisite paperwork filled out, and be prepared to offer evidence and arguments against the amount due.
If you disagree with the results of the informal meeting, you may promptly arrange a formal meeting with the office of administrative hearings. The decision arising from this meeting will determine your final amount due, which must be paid shortly after the decision is made final.
The State may employ a collection agency to help with the collection of due revenue.
Failure to pay a tax and any associated penalties will result in the State filing a lien. This is to protect the State’s interest, and further failure to address the dues may prompt the lien’s enforcement. While the State does not actively notify credit agencies of a lien, it is a matter of public record. So it can still affect your credit if an agency decides to check.
In addition to other penalties that are imposed for failure to file or pay your taxes on time, your license allowing you to lawfully conduct business in the state of Alaska may be suspended until the liability, including penalties and interest, is paid in full.
Priority One: Stopping Aggressive Enforced Collections
Levies and Seizures
After an assessment has been made and your appeal period has passed, the State may seek to resolve the amount of tax owed by means of levying your property or rights thereto. Any costs associated with the levy may also be added to the amount owed. Property is sold shortly after seizure.
Offers in Compromise
Assuming proper approval, you may be able to arrange an offer in compromise with the State. This requires honest doubt regarding either your own liability or the collectability of your owed tax and any associated penalties.
If you do not pay your taxes by their due date, percentage penalties will be added to your total liability. These may vary by tax type, and by the circumstances of your deficiency.
In addition, your license for conducting business legally in the state may be suspended until your liability is resolved.
If it is your responsibility to account for or collect a tax and you fail to do so or fail to do so honestly, you may be liable for a penalty equivalent to the total amount in question, as well as a felony charge.
Power of Attorney
You may authorize an individual to represent you before the Department of Revenue. Depending on the individual’s status, the appropriate documentation must be filed, and the Department’s discretion satisfied.