There are two main types of state tax debt: personal and corporate. Each 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
  • Workers compensation
  • Franchise taxes
  • Liquor Licenses and Taxes
  • Conflicts with an IRS Officer

How do I Qualify for State Tax Debt Relief?

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

    Corporate shut down, 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 new identity and tax ID number.

Get Professional State Tax Relief Help with Optima Tax Relief

The experts at Optima Tax Relief provide state tax resolution services to help you achieve tax relief. Unlike much of our competition, Optima Tax Relief has represented many clients with State Tax Issues. Each state is different in regard to Tax Debt. To get state tax help or learn more about the services we offer schedule a free consultation with one of our tax professionals today.

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