State Tax Issues
Income tax debt to a taxpayer’s state can be just as serious as those owed to the IRS. Each state has different statutes and codes concerning state back taxes, and each state has its own policy with dealing with a particular situation. These differences are important because they require ample knowledge of the laws, procedures, and requirements of the state’s tax division.
What is less known about states is that they are more aggressive than the IRS in their collection process. For instance, the California Franchise Tax Board will place a garnishment on an unfiled return assessed balance and will not remove it even if a payment plan is offered. Once this garnishment occurs, the only relief available is to reduce the percentage of the garnishment or to qualify for financial hardship or a state offer in compromise.
As far as tax settlements, most states have a settlement procedure similar to the IRS’ Offer in Compromise. While each state is a little different, the goal of the offer is the same: convey no disposable income and no liquidable equity in assets. By doing this, the various states are more likely to settle your tax debt.
If an offer or settlement is not an option, other avenues are still available such as payment plans, penalty abatements, innocent spouse, or other relief, all of which mirror that of the Internal Revenue Service. These efforts should be accomplished by someone with the experience and knowledge about your state. For instance, to assist a taxpayer in Oregon, the resolution company needs to tell its taxpayer that unless they have a licensed professional of Oregon, that they can only assist in paperwork negotiations rather than over the phone negotiations. For New York, most forms require a signed notary and therefore can be more costly in assisting its clients. For Maryland, the power of attorney form does not exist, and instead, the state accepts the federal 2848 with a couple variations. This inside knowledge is available here at Platinum Tax Defenders and we are best able to assist you with your state tax issues.
Back taxes owed to the state are a serious issue, just like unpaid federal back taxes, so it is wise to contact the state as soon as possible and arrange to pay off the back taxes so you can move on. This arrangement should be done by an experienced professional so that your rights can be better served. Contact us at Platinum Tax today.
Platinum Tax Defenders
Platinum Tax Defenders is a full-service tax resolution firm in Los Angeles that has been helping taxpayers resolve their IRS and State tax issues since 2011. Our team of tax attorneys, accountants, and enrolled agents have a combined more than 90 years of experience in the financial services industry. Our team is ready to provide tax relief services to clients facing wage garnishments, bank levies, liens, and other challenges.
Platinum Tax Defenders is a full-service tax resolution firm that includes a tax attorney, IRS enrolled agents and certified public accountants specializing in providing tax relief services for taxpayers facing IRS or State tax debt. We work with the IRS on your behalf to come up with reasonable payment options and settlements. Our tax professionals are knowledgeable and experts in tax negotiations. The consequences of unpaid taxes vary by each individual taxpayer’s situation. But unpaid tax debt can lead to wage garnishment, property liens, and bank account levies. Platinum Tax Defenders will help you reach a tax resolution plan before it’s too late. We offer fast response protection to our clients and a commitment to gaining major tax reductions. Whether this is your first time facing a tax problem, or you have previously hired a tax relief firm in Los Angeles to resolve your tax debt, we have a track record of consistently garnering IRS settlements for our clients.
At Platinum Tax Defenders, we’ve developed an impeccable reputation for doing what’s best for our clients, 100 percent of the time. We are honest and upfront with you about your tax debt situation, and the type of tax resolution services we can provide. Each individuals’ tax situation is different, and we’ll do whatever we can to negotiate with the IRS to help you reach a tax relief plan that works for you. We are experts in our field and work diligently to resolve the specific tax issues that each of our clients faces. Platinum Tax Defenders offers fair and honest tax resolution services, and you can count on us to operate professionally and legally.
Many tax relief services in Los Angeles tend to make unrealistic promises. You can count on us to always be honest and upfront about your financial situation, and what type of tax resolution results you should expect.