State Tax Lien

Many people who owe the IRS also have state tax problems.

State collection authorities have tremendous reach and are generally more rigid in their collection efforts. While their tactics can be aggressive, they are nonetheless bound by tax law.

This is good news for taxpayers, as state tax laws almost always allow for some level of tax debt relief for those who qualify. A good state tax advocate will know that most states offer similar versions of the IRS’s Offer in Compromise program, and may offer Payment Plans and amnesty from penalties and interest if successfully approached.

What Is a State Tax Lien?

A state tax lien is the state’s legal claim to property to secure tax debt owed to the state government.

Because each state has tax laws unique to that state, there is no ‘one law fits all’ when dealing with state tax lien problems. This is yet another reason why hiring a tax resolution professional can be so important, especially for those with complicated state tax lien issues.


State Tax Lien Information

One of the most common concerns people have when it comes to state tax liens is how long they last.

The statute of limitations for the collection of state tax debt varies from state to state, meaning that tax liens securing that debt also vary. Depending on where you live, your state tax debt could be legally enforceable for up to 20 years (or more) from the date the debt was assessed. How and when a state tax authority will aggressively collect a debt also varies from state to state.

This makes it all the more important to work with a qualified tax resolution professional to help you sort through your unique state tax debt situation.

Getting a State Tax Lien Removed

Once a state tax lien is filed, it becomes public record and is often accompanied by collection actions such as a levy or a seizure of your property in an effort to satisfy the amount owed.

Typically, state tax liens are only released when the debt is paid in full. Some states allow a tax lien subordination, which can help taxpayers who are trying to refinance their homes.

As long as the tax lien is in place, your business credit rating will suffer, and your property (including wages) can be seized. Furthermore, having a state tax lien can make it difficult to obtain a loan and can complicate the mortgage approval process. To address these issues, you will need to take action to resolve the situation. This is where Omni Tax Solutions can help.

Call us today for a free consultation and to get more information about state tax problems and tax relief. The number is (855) 529-3214.