State Tax Problems

The state could send you a letter for many reasons. Some are simple, such as verifying your identity or asking for a small amount of missing information. Other tax letters or notices might tell you that your refund wasn’t correct or let you know that you have an unpaid balance on your state taxes.

Unfortunately, some state tax notices and letters might be more troubling. Sometimes a state tax authority sends a letter taking an action against you. It is important to be aware that state taxing authorities move faster in making collection actions against delinquent taxpayers because they need to increase revenue collection quickly. They place liens and levies just like the IRS, and sometimes they do it must faster than the federal government.

Here are some examples:

Wage/income levy: A wage or income levy means the state is seizing your wages or income to pay for your tax debt. The state has the legal authority to garnish your wages or take funds from your personal bank account or other financial account. Once a wage levy is in place, many states may be reluctant to work with you to lift the levy after being ignored for quite some time.

Bank levy of your business bank account: Your state taxing authority might also send a notice to your business bank of a levy of that account if you failed to pay your business taxes. The result is that the bank freezes your business account and initiates a process to send the amount requested to the state to pay for your tax debt. The due date on the letter to contact the state taxing authority may mean different from state to state.

Security interest against your assets: The state can also place a tax lien (or a memorandum of lien) on your house or car. That means that the state has issued a legal claim on your property so you cannot sell it until you pay your tax debt. Such a notice tells your creditors that the state revenue department has a claim on your property.

While sometimes the types of collections actions taken by the IRS and the state are similar, do not fall into the trap of assuming they are the same. People are often surprised at how quickly state governments move in placing a wage levy or bank levy on someone who has failed to pay. In addition to the IRS, The Law Offices of Sammy Kim helps taxpayers that have problems with the Virginia Department of Taxation, the Comptroller of Maryland, the D.C. Office of Tax and Revenue, the New York State Department of Taxation and Finance, and other state taxing authorities across the country.

Solve Your State Tax Problem Now

There are no two ways around it. If you have received one or more notices or letters from your state taxing authority, you must determine what your rights are and the best solution for you. Contact The Law Offices of Sammy Kim now for help with your state tax problem — before you lose any rights or miss any important deadlines.

In a state tax audit letter, the state government is asking you to verify certain information on your state tax return. It could be simple, or it could be much more complex, especially if you lied on your tax return. Whatever you do, do not ignore the letter. States have different deadlines for responding so make sure you read the letter carefully and respond on time. A tax attorney with years of experience can draft your letter back to the state and meet all requirements.

The IRS and your state taxing authority are two different taxing entities with two different sets of codes and policies. It is very common that a taxpayer with an IRS tax problem also has a state tax problem. State tax problems involve income tax, sales tax, employer withholding tax, unemployment tax and more. You have to respond to and resolve your IRS matter separately from your state matter and follow the specific deadlines and rules for each. An experienced tax lawyer can help you figure out how to handle all of your tax problems with the IRS and your state.

I have worked with many clients who wished they could skip responding to state tax letters and notices. Unfortunately, I am sorry to tell you that your state tax problems will not go away if you simply hide the letters and notices in your drawer.

It’s possible you have received one state tax notice and are pretending it doesn’t exist. Or maybe you have a plastic grocery bag full of letters from the state and you are losing sleep over them.

But please listen when I tell you that waiting to respond or act on your state tax problem will only make it more serious. The state has the power to take your house, your car, your bank accounts, your driver’s license and even your business or professional license. If you don’t deal with the problem now, they will continue to send you more collection notices and letters and issue more penalties.

Reach out to me now. I am here to help you solve your state tax problem.

Even if you have a great CPA or accountant, there are many circumstances when you need an experienced tax attorney to draft letters and protect your appeal rights and help reduce your back taxes due. A skilled tax attorney makes your case to the state taxing authority, knows the unique rules in your state, and can deal with different state’s administrative channels to reach best result for you. A tax attorney can represent your case to the state.

As an experienced tax lawyer, I can help you solve your state tax problem in many different ways.

Here are some of the solutions I can help you with:

Negotiate Lower State Taxes: In many situations, I can help you negotiate with the state taxing authority to pay less taxes than you owe. That is typically called an offer in compromise. A tax lawyer will help you determine the amount of the offer and make your case to the state.

Installment Agreements: When you can’t afford to pay the full amount of state taxes due at one time, I can negotiate an installment agreement so you can pay it over time.

Eliminate Your Tax Debt: Sometimes, many years have gone by since you incurred state tax debt and your financial situation has changed. I can often help you settle the debt with the state for less than you owe or have your debt classified as uncollectible.

Release A Wage Levy: When the state takes money out of your paycheck to pay for your tax debt, it’s known as a wage levy or wage garnishment. A skilled tax lawyer can get the levy stopped and help you find a better way to solve the problem.
Release A Business Bank Levy: If you own a business, the state can issue a business bank levy. That means the state takes action to get your tax debt paid using the money in your account. If your business account is frozen due to a levy, I can work out an agreement with the state so you can get your business up and running again.

Release Or Discharge A Tax Lien: Like the IRS, your state taxing authority can place a lien on your home, car or other assets, making it impossible to sell. I can work with the state to release the lien or change the priority of the lien so your sale can go through.

Relieve Your Penalties: Many times, the state tax penalties for late payments are even greater than the federal ones. When high penalties are looming, a tax attorney can determine whether you have to pay them at all or get them reduced for you.

Represent You In An Audit: I have successfully represented many people in state tax audits. A skilled tax lawyer will make your case and help you pay less to the state. Having a tax attorney is very important if your case is complicated or involves tax fraud.

Respond To The State’s Letter And Fix Errors: A state can send a letter proposing changes to your return and ask you to pay more taxes due to their changes. I can dispute the change if the state is inaccurate.

Resolve Payroll Tax Issues: For business owners with payroll tax problems, I can help you find a solution and work with the state to advocate for you.

Resolve Business Sales Tax Problems: Retail businesses are required to file monthly sales tax returns and pay sales taxes collected from selling goods in the previous month. An experienced state tax attorney can help resolve compliance issues and the back taxes, often with you paying less than you owe.

Get Your Professional Or Business License Back: The state can take away your state-issued professional or business license if you haven’t paid your taxes. An experienced tax attorney can negotiate a plan to pay back the taxes and get you back to focusing on your day-to-day work.

Get Your Driver’s License Back: If your driver’s license or registration was suspended by the state due to tax issues, I can help you resolve the issue and get them back.

File Any Outstanding Or Amended Tax Returns: I can help you get any outstanding state tax returns filed, with the goal of reducing any interest fees and penalties.

Speak To A Tax Lawyer Now

With your signed state Power of Attorney forms, I can practice and have solved state tax problems for residents of many states, including Virginia, Maryland, Washington, DC, New York, and many other states. Contact me now and I will educate you about the specific laws and requirements to deal with a tax issue in your state.

No. When I become your lawyer, the state tax authority will not reach out to you anymore other than sending you a copy of their correspondence. I will manage all communication with the state for you. I will work to solve your state tax problem, handle all communication with the state, and keep your rights and assets protected.

A tax attorney might be able to resolve your state tax issue in one day, a few days, or a couple of weeks. State tax problems sometimes take longer to solve, especially if they have been building up for a long time. When your state tax liability is more complex, it can take a few months to a couple of years to resolve.

State tax laws and procedures are different in every state. There are many specific rules and a lot of details to understand to sort out any state tax law issue. I have the experience and knowledge to understand your state tax problem. I will position your case to find the best outcome for your state tax problem. I will pay attention to every detail and ensure that all documents are filed and that you meet all state deadlines.