Tax Help with Alaska State Taxes

Alaska has no individual income tax and no sales tax, however there are many taxes that are collected by the Division of Taxation that include, but are not limited to: corporate income tax, property tax, employment tax, estate tax, withholding tax, oil & gas tax, tobacco & alcohol taxes, fisheries & gaming taxes and more.

The following information is unique to the state of Alaska and the Alaska Department of Revenue, Division of Taxation.

• Appeals
• Collection Agency
• Interest
• License Suspension
• Liens
• Levy
• Offer in Compromise
• Penalties
• Personal Liability
• Power of Attorney
• Warrants

Appeals

If you do not agree with the amount of tax or penalty assessed in a notice, you may request an informal hearing with an appeals officer within 60 days of the mailing of the notice. You must request the conference using Form 04-775. In the informal conference you may present arguments or evidence relating to the amount of tax or penalty that is due.

If you do not agree with the informal conference decision, you may file a notice of appeal for a formal conference with the office of administrative hearings, no later than 30 days after the decision of the informal conference.

The amount that is determined to be due must be paid within 30 days after the date that the final administrative decision becomes final.

Collection Agencies

A collection agency may be employed by the Commissioner to assist in the collection of revenue due to the state.

Interest

Interest will continue to accrue on unpaid tax liabilities from the due date until paid in full. The following are interest rates compounded quarterly:

• October 31, 1991 – June 30, 2006 11%
• July 1, 2006 – September 30, 2007 11.25%
• October 1, 2007 and quarterly thereafter 11%

Certain types of tax liabilities may have an interest rate of 12%. By tax code, the department may not reduce interest on unpaid taxes and interest will accrue regardless of whether an appeal is filed and regardless of whether the department or the taxpayer is at fault.

License Suspension

In addition to other penalties that are imposed for failure to file or pay your taxes on time, your license allowing you to lawfully conduct business in the state of Alaska may be suspended until the liability, including penalties and interest, is paid in full.

Liens

If you do not pay a tax including any penalty or interest that has been assessed a lien shall arise at the time of assessment and continue until the amount is paid or a judgment against you arises out of the liability. When there is a refusal or neglect to pay tax, penalties, interest or other charges within 10 days of the notice, the attorney general may file action to enforce the lien by distraint and sale. A lien may have a negative effect on your credit and limit your ability to purchase or sell real estate or obtain a loan.

Levy

After an assessment has been made and no appeal has been filed or the time for appeal has run out, the tax may be collected by levy on property or rights to property including real estate, stocks, bank accounts, vehicles and more. The date on which a levy on property or right to property is made is the date on which the notice of seizure is given. The costs and expenses associated with the levy may also be included. Seized property may be sold not less than 10 days or more than 60 days from the date of notification.

Offer in Compromise

With the approval of the attorney general, the Department of Revenue may accept a compromise for tax or penalty if there is doubt as to liability of the taxpayer or doubt as to collectability.

It is against the law to conceal or falsify property or financial conditions of the taxpayer in connection with an offer in compromise.

Penalties

If taxes are not paid by the due date a penalty will be added to your tax liability.

A 5% penalty for underpayment for each 30-day period or fraction thereof, with a maximum of 25% shall be imposed when the taxpayer fails to pay the full amount of the liability on time.

If a tax deficiency or part of a deficiency is due to fraud, a penalty of 50% of the tax due or $500, whichever is greater, shall be added to the tax.

Personal Liability

If you are the person responsible for collecting or accounting for a tax and you fail to collect the tax, truthfully account for the tax or pay over the tax to the State, you may be held liable for a civil penalty equal to the total amount of tax not collected, not accounted for, not paid over, or evaded, as well as being guilty of a class C felony.

Power of Attorney

You may grant authority to an individual to represent you regarding your tax matters before the Alaska Department of Revenue by filing Form 04-775, Alaska Department of Revenue Power of Attorney. The individual representing you must be a recognized representative who is appointed as an attorney-in-fact under a power of attorney and who is an attorney in good standing in any state, a certified public accountant licensed in any state, an individual enrolled to practice before the Internal Revenue Service and is in active status, or an individual in a special status with a taxpayer. An individual other than one described may represent a taxpayer in a particular matter upon written application and at the discretion of the department.

Warrants

The Commissioner may issue a warrant for the collection of unpaid taxes to properly enforce compliance with state tax laws.

We strive to save our clients money, time and stress.  Just as there are many different tax related problems, there are many options for tax resolution.  Call us at 888-902-0778 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.