There are two main types of state tax debt: personal and corporate. Each one can have their own sets of challenges and potential solutions.
In many cases, State Tax Collection authorities can be more aggressive and act before the IRS takes action. Typically, those who owe the IRS, also end up owing state tax. State tax collection authorities have tremendous reach and can cause financial hardship if not dealt with in a timely manner. The experts at Optima Tax Relief provide state tax resolution services to help you get tax relief.
Personal State Tax Debt
Some common state tax debt issues regarding personal taxes include:
- Missing or unfiled tax returns
- 1040 and income taxes
- 1099 form issues
- Sole proprietor & business-related taxes and filing
- Wage garnishment
- Tax levies
- Tax lien issues
Business State Tax Debt
If you are a business with state tax debt, issues may occur through the following situation:
- Withholding taxes
- Missing or unfiled tax returns
- 1099 form issues
- Bank levies
- Accounts Receivable levies
- Unemployment taxes taxes
- Workers compensation
- Franchise taxes
- Liquor Licenses and Taxes
- Conflicts with an IRS Officer
How Do I Qualify?
There are several potential options for resolving state tax debt. The best way to get state tax relief will ultimately depend on your state and personal situation.
-
Installment Agreements
Installment plans allow you to pay off your state tax debt in agreed upon installments with the IRS. This alleviates the pressure of producing a lump sum to clear the debt.
-
Offer in Compromise
Some states offer similar programs to the IRS’s Offer in Compromise which you may qualify for. It will depend ultimately on your income and assets and the paperwork is not the easiest to navigate.
-
Currently Not Collectible Status
Depending on your financial situation, a currently not collectible status may apply to you. This is in the event that you do not have the finances to pay an installment or submit an offer in compromise.
Business State Tax Debt Relief Options
Consider the following state tax relief options for your business.
-
Corporate Shut Down
A corporate shutdown or the closure of a corporate entity can sometimes offer the most relief benefit in state tax debt situations.
-
Corporate Formation
Sometimes the best resolution is to start over. Corporate formation means that you start a new corporation with a new identity and tax ID number.
There is a solution to every IRS problem! Let us help you stop worrying and start living!
Contact Us Today
If you need an expert tax resolution provider who knows how to navigate the IRS maze, call us today at 1.888.4TAXREZ or use our contact form, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.