Home » Our Services » Tax Resolution » State Tax Relief

State Tax Relief  & Resolution

State Tax Issues – Personal and Business

In many situations, state tax agencies can be more aggressive than the IRS when it comes to collecting back taxes. And like the IRS, state tax collectors have tremendous enforcement powers that can wreak financial havoc on taxpayers if not dealt with in a timely manner.

There are two main types of state taxes: personal and business taxes. Each presents its own set of challenges and solutions.

Woman with brown hair and wearing a blue long sleeve shirt, sat at a table, looking at paperwork

TWO TYPES of STATE TAXES

Personal Taxes vs. Business Taxes

Personal State Tax Issues

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 attached to personal filing
  • Wage garnishment
  • Tax levies
  • Tax lien issues

Business State Tax Issues

If you are a business, state tax issues may arise from:

  • Payroll tax withholdings
  • Missing or unfiled tax returns
  • 1099 form issues
  • Levies on bank accounts
  • Levies on accounts receivable
  • Unemployment taxes
  • Workers’ compensation
  • Franchise taxes
  • Liquor Licenses and Taxes

How do I Qualify for State Tax Relief?

There are many options for resolving state tax issues. The best way to get state tax relief will ultimately depend on your state and personal situation. Here are three of the most common options for resolving issues regarding unpaid state taxes:

Installment Agreements

Installment plans allow you to pay off your state tax liabilities in installments, under terms agreed to by you and the tax collection agency in your state. This allows you to pay off your back taxes over time rather than having to pay the entire amount in a single, lump sum payment

Offer in Compromise

Some states allow taxpayers to resolve their back taxes through an offer in compromise (OIC), similar to the IRS’s IOC offerings. The criteria for qualifying for an OIC varies from state to state. Working with qualified tax professionals can be helpful in navigating the OIC process in your particular state.

Currently Not Collectible

If you can’t afford to pay your back taxes through an installment agreement or an OIC, you may be able to qualify for currently-not-collectible (CNC) status. Each state has different criteria for qualifying, so consulting with a qualified tax professional before you file for CNC status is often a wise decision.

Get Professional Tax Assistance with State Tax Issues with Optima Tax Relief

Optima’s tax attorneys and licensed professionals have helped resolve state tax issues for thousands of taxpayers across the nation. To get help with your state taxes or to learn more about our full range of tax assistance services, schedule a free consultation with one of our tax professionals today.
Get Your Free Consultation
Trustpilot

Let Optima Tax Relief Help

Call 1-800-536-0734 for a free consultation.

GET TAX HELP

Let Optima Tax Relief Help

Call 1-800-536-0734 for a free consultation.

GET TAX HELP