State Tax Issues
Wherever you are, we can help
With over 200 tax professionals working across the country, we help clients in all 50 states find the right resolution for their state tax debt. Whatever issue you’re facing with state tax—property lien, wage garnishment or bank levy—Tax Defense Network will work with state agencies on your behalf to help you get your life back on track.
Tax issues vary state to state, but there are several common ones you might be facing.
- Didn’t file a state tax return
If your state charges an income tax, you may need to file a State Income Tax return. If you didn’t file by the April deadline, it’s recommended that you file as soon as possible to avoid penalties and interest, which can be as harsh as the IRS.
- Made a mistake on a state tax return
If the mistake is also on your Federal Tax Return, fill out an amended federal income tax return first (Form 1040X), then use the information to amend your state tax return. Each state uses a unique form for their amended return, but it will usually end with the letter “X.” You may need to attach your amended federal return when filing your amended state tax form.
- Tax penalties
Failure to file a tax return or pay taxes owed to the state could lead to tax penalties. Penalties can vary by state, but most adhere to the IRS penalty, which is five percent of the balance owed per month up to 25 percent.
- Can’t pay amount owed
If you’re unable to pay your state tax debt in a single payment, you have the option to request an installment agreement, which will allow you to pay off the debt over a certain amount of time.
- Tax levy issued
A state taxing agency’s levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or another financial account, seize and sell your vehicle(s), real estate and other personal property.
- Tax lien filed
State taxing agencies can file a lien to protect their interests if you fail or neglect to pay a tax debt. You’ll receive an official notice in the mail from the agency. They’ll also send this notice to tell creditors that they’ve filed a claim against property including real estate, personal property, and financial assets. This is done to ensure the funds made from the property are applied to the debt. Getting a tax lien released is difficult and most often is only done when the tax debt has been paid in full.
How we work
We take a simple, three-step approach to working with you to resolve tax debt.
Connect with us for your free, no-commitment consultation. We’ll collect information relevant to your circumstances, then get to work researching how we might help you. This normally takes just a few days.
We’ll review your case and provide a quote and timeline for finding the right resolution. If it looks good to you, we’ll start right away to move your case through.
We get to work, researching and navigating the ins and outs of your state taxing agencies. You’ll be informed at every step as we negotiate with the state on your behalf. No matter what, we’re just a phone call or email away until your case is resolved.