We’ve spent a lot of time on our blog discussing various strategies and techniques for handing IRS tax debt. However, state tax debt can be a big struggle for many Americans all over the 50 states. If you’re struggling with tax debt owed to your state, there are a few things you should know about debt negotiation and the resolution process.
4 Steps to Combat Tax Debt
First, be assured that this tax debt isn’t just going to disappear. Even if you’re convinced that the information is inaccurate, state governments are quite the large machines. They aren’t going to let you off the hook just because you claim there’s been an error. Address the situation as early as possible for the best results.
Second, get a professional on your side. Debt negotiation is a lot easier – especially when negotiating tax debt – when you have a CPA or tax lawyer backing you up. Get someone with plenty of experience for tackling your situation.
Thirdly, get every scrap of evidence that will back your case. Hand this over to your tax lawyer. (Get used to practicing full transparency in order to achieve the best results.) Let your tax lawyer create a plan of attack. Be willing to ask questions about anything you don’t understand. After all, you are ultimately the one responsible for your case – not your lawyer.
Fourthly, submit your appeal to the state. This may take some time, so make sure you’re putting forth the very best case when you submit your tax debt negotiation plan.