Owe your state? It works differently than the IRS.
State tax agencies collect on their own, with their own rules, and they can move faster than the IRS. Here's what to expect, and how to get it resolved.
State guides
Detailed guides for specific states. More are on the way.
1How states are different from the IRS
- They can act faster. Many states start collection sooner, with fewer letters before a levy.
- They may have more time. Some states have collection periods longer than the IRS's 10 years.
- They have their own tools, like suspending a driver's or professional license, or publishing lists of the largest delinquent taxpayers.
- A federal resolution doesn't cover your state. A payment plan with the IRS doesn't stop state collection, and vice versa.
2What states can do to collect
- Garnish your wages and levy your bank accounts.
- File state tax liens or warrants against your property.
- Keep your state tax refund and some other state payments.
- In some states, suspend driver's or professional licenses.
3Your options
Most states offer options similar to the IRS: payment plans, hardship status, penalty relief, and in many states an offer in compromise. The rules and paperwork differ by state, and some states are stricter about accepting settlements.
Common questions
Can you help with my state taxes if you're online?
Yes. We work with state tax agencies across the country, online and by mail, where state rules allow representation.
Should I deal with the IRS or the state first?
It depends on which one is taking action. Whichever is levying or about to levy usually comes first, but both need a plan.
Owe your state, the IRS, or both? Let's plan it together.
Answer 3 quick questions and a licensed tax pro will review your situation for free.
Get Your Free Consultation →Written by Jonathan Samuel, EA. This page is general information, not advice for your specific situation. State rules change; check with your state's tax agency for current details.