Tax Resolution Services

State Tax Problems

If you have unfiled tax returns or owe back taxes to a State tax agency, we can help – whether its income, payroll, or sales taxes.

Storefront Icon

Debt collection for back taxes by state agents can be very aggressive, with unpaid debts often resulting in wage garnishments and bank levies. Each state has its own rules and requirements regarding taxes, so it’s important to know how and where you file so you can find the best resolution. Some resolution options are available across all states, including Installment Payment Agreement and Currently Non-Collectible (CNC), but the easiest way to obtain state tax relief is to work with the experts at Direct Tax Relief to find the solution that best fits your situation.

Front of a state building.

With DTR’s Help

You can get assistance with back taxes and unfiled returns to state agencies.

Checkmark

Our experts will negotiate with State tax agents on your behalf

Checkmark

Resolve debt through various programs

Checkmark

Prevent enforced collection action

Checkmark

Prevents employer being notified about your tax debt

Get Help With State Tax Problems

Our Other Tax Resolution Services

Handshake Icon

Offer in Compromise

If you owe tax debt, an Offer In Compromise can help you settle it for less. DTR has the expert negotiation skills needed to get your tax debt reduced as much as legally allowed.

Suitcase Icon

Payroll Tax Resolution

If you’re a business owner who fails to file or pay payroll taxes, Direct Tax Relief will negotiate with the IRS to reach a resolution and protect your business from shutting down.

Wheel and Shock Icon

Penalty Abatement

Direct Tax Relief negotiates with the IRS to have these difficult penalties removed from your account, getting you out of debt and back to freedom, based on reasonable cause.

Checklist Icon

Preparation of Unfiled Tax Returns

Working with you from the first step of tax debt resolution, Direct Tax Relief has tax accountants to prepare your unfiled tax returns, whether it's an individual return or complex corporation returns.

Document and Pen Icon

Installment Agreement

At Direct Tax Relief, we'll negotiate with the IRS to create an easy, affordable payment plan that gets you in compliance, and works with what you can afford, preventing future IRS wage and bank garnishments.

Headset Icon

Audit Representation

If your individual or business tax returns are being audited, Direct Tax Relief’s tax experts can take over your audit proceedings to ensure you get the resolution you deserve.

Bank Icon

Bank Levy Release

When your taxes remain unpaid and a bank levy is issued, Direct Tax Relief can help you find a resolution so you can avoid frozen bank accounts and money seizure and, in some cases, have current bank levies released.

Dispensed Dollar Icon

Wage Garnishment Release

When your wages, commissions, and Social Security income are being garnished because of unpaid taxes, DTR will negotiate with the IRS to put a stop to it.

Stroefront Icon

State Tax Problems

If you’re a retail store, contractor, or provide in-home services, you could face state tax issues. But the experts at Direct Tax Relief have expert guidance and solutions to get you on the road to tax debt freedom. We can also help with state income, payroll and sales tax issues.

Slashed home icon

Tax Lien Release

In certain situations, Direct Tax Relief may be able to have your federal tax lien released, once we complete resolution of your case.

Marriage Rings Icon

Innocent Spouse Relief

For married couples, filing your taxes jointly can provide many benefits–but it can create problems. If you have tax liabilities, interest, and penalties as a result of filing jointly, DTR professionals can get you on the road to being tax debt free.

Home in Hand Icon

Lien Subordination

If you are looking to refinance your house but have a federal tax lien, the tax professionals at Direct Tax Relief will pursue all avenues to find a solution through a lien subordination.

See All Tax Resolution Services

Frequently Asked Questions

State tax issues occur when taxes owed to a state tax agency remain unpaid or unresolved. This can involve unpaid income taxes, business taxes, payroll taxes, or sales taxes. When these debts go unresolved, the state may add penalties, interest, and begin collection actions. Addressing the issue early can help reduce financial consequences and prevent enforcement actions.

If state taxes remain unpaid, the state may begin collection efforts to recover the balance. This can include penalties, interest, tax liens, wage garnishments, or bank levies. Each state has its own procedures and enforcement methods for collecting tax debt. Resolving the issue quickly can help limit these actions.

In some situations, states may allow taxpayers to settle their tax debt for less than the full balance owed. This type of resolution is often similar to an Offer in Compromise at the federal level. Eligibility depends on factors such as income, assets, and the ability to pay. Each state has its own rules and approval requirements.

Yes, many state tax agencies offer payment plans for taxpayers who cannot pay their balance in full. These installment agreements allow the debt to be paid over time through manageable monthly payments. Entering a payment arrangement can often help stop more aggressive collection actions. The exact terms depend on the state and the amount owed.

Yes, state tax agencies can file a tax lien if a tax debt remains unpaid. A tax lien is a legal claim against your property that secures the state’s interest in collecting the debt. Liens may affect your credit and make it harder to sell or refinance property. Resolving the tax debt is typically required before the lien can be released.

Yes, states may garnish wages to collect unpaid tax debts. If a balance remains unresolved, the state may require your employer to withhold part of your paycheck. The garnished wages are then applied toward the tax liability. Acting quickly can sometimes prevent or stop wage garnishment.

Ignoring state tax notices can lead to escalating collection actions. Penalties and interest may continue to grow, and the state may eventually pursue levies, liens, or wage garnishments. Responding to notices early gives you more options for resolving the issue. Addressing the problem promptly can prevent the situation from becoming more severe.

In some cases, taxpayers may qualify for penalty relief from a state tax agency. This often depends on the circumstances that caused the tax issue, such as reasonable cause or administrative relief programs. Removing penalties can help reduce the total balance owed. Each state evaluates these requests based on its own rules.

State tax agencies and the IRS are separate government entities, but they may share certain tax information. Because of this, unresolved federal tax issues can sometimes affect state tax matters and vice versa. Each agency still conducts its own collections and resolution process. Addressing both federal and state obligations may be necessary in some cases.

Resolving state tax problems usually starts with reviewing the balance owed and identifying the best solution. This may involve filing missing tax returns, negotiating payment arrangements, requesting penalty relief, or pursuing settlement options when available. Each state has different procedures and requirements for resolving tax debt. A clear strategy can help bring the account back into compliance.