States can pursue taxpayers for allegedly owed taxes too

At first blush, a state or local tax controversy may seem to be less scary than an audit by the IRS. However, state tax officials in Washington, D.C. are often very aggressive, maybe even more so than their equivalents at the federal level.

Besides state income tax, you could find yourself dealing with property tax matters. Businesses could be in trouble for allegedly failing to pay sales tax, use tax, withholding tax or unemployment tax.

One reason that state authorities can be aggressive about tax matters is that they might consider themselves to be competing with the IRS, if the taxpayer also is accused of owing federal income taxes. Because states often assess their income taxes or file tax liens before the IRS, they can get priority.

Defending against a state agency’s claims that you failed to pay your taxes in full can be difficult. The process can be significantly less formalized than how the IRS operates. While every tax problem has a solution, resolving a tax dispute at the state level may take carefully planned strategy combined with a healthy dose of creativity.

One possible option can be entering into a payment plan. Most states offer something similar to the IRS’s Offer in Compromise program, which allows taxpayers to settle their tax liability, often for less than the full amount, and possibly avoid expensive penalties and interest.

Having the right tax attorney on your side can help you reach the end of your tax problems as smoothly and quickly as possible.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map