Back Taxes:  State

Back Taxes owed at the state level may include, but not be limited to, sales tax, withholding tax, unemployment tax, property tax and workers compensation.  Each state handles the various back tax liabilities differently, with different processes, procedures and agency responsibilities.  Often states are more aggressive in tax collections or offer fewer options for resolution than does the IRS.

Back Taxes:  Collection Agencies

Some states, and recently the IRS also, have enlisted collection agencies to pursue back taxes owed by businesses and individuals.  Dealing with a collection agency can be challenging and frustrating.  The collection agency will charge a premium above and beyond the penalties and interest due on the back taxes.  This is how the government pays the collection agency.  Also, collection agencies are accustomed to collecting consumer debt and are unaware of different payment options available to taxpayers.  If you are contacted by a collection agency in regards to back taxes owed, verify their identity before offering any private information.  Please contact Larson Financial to get answers specific to your situation