Can the state garnish my wages for unpaid taxes?

Yes. State taxing authorities may garnish or levy wages when qualifying tax debts remain unresolved. The rules vary by state. For example, South Carolina states that the SCDOR may levy 25% of an individual's gross wages for an unpaid assessment or tax lien, with qualifying taxpayers able to request a reduction to 15%.

Can the state levy my bank account?

Depending on the state and where you are in the collection process, a taxing authority may levy funds in a bank or certain other financial accounts. South Carolina, for example, permits the SCDOR to levy certain intangible assets, including bank and some investment accounts, when an assessment or tax lien remains unpaid.

State Tax Problems

Resolve State Tax Problems Before They Escalate

State Tax Resolution

Protect Yourself From Aggressive State Tax Collection Actions.

Just as with the IRS, South Carolina, North Carolina and Georgia can be just as aggressive, if not more so with their tax collection efforts.

Most states do not have programs similar to what is available with the IRS to deal with an outstanding tax liability. The states are quicker to garnish your wages, lien your property and levy your assets to collect an outstanding liability. At the state level, the notification required to perform one of these collection activities is much shorter. In some cases, the states are only required to give you five days notices before performing a collection action.

Most clients who have an existing IRS issue also have a tax liability with one of the state taxing authorities. However, in most cases, the liability to the state is substantially lower than what is owed to the IRS.

Solving your state tax issue is part of the comprehensive solution that we will propose once you hire ETS. As with any tax situation, the sooner you deal with issue, the easier the solution will be.

State Collection Efforts

As states continue to search for more and more revenue, it has become common place for the various state departments of revenue to garnish your wages or levy your bank account with little to no notice. Most state departments of revenue have vast latitude in collecting past due taxes. It is common for states such as South Carolina to levy your bank account over small tax liabilities without notices to the taxpayer and we have actually seen what we would consider a small tax offender be criminally prosecuted for failure to pay their liability or even for failure to have state income tax withheld on a W2. In short, if you owe state income tax, call us immediately because this is one issue that must be addressed immediately

Get Help With State Tax Debt

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Frequently asked questions

STATE TAX PROBLEMS

If state taxes remain unpaid, the taxing authority may add penalties and interest and eventually pursue collection. Depending on the state and circumstances, collection actions can include tax liens, wage garnishments or levies, bank account levies, and other methods of collecting the outstanding balance. For example, both South Carolina and North Carolina provide for collection actions against taxpayers with unresolved state tax debt.

Don’t Let State Tax Problems Become a Bigger Problem.

State tax issues can escalate quickly when left unresolved. Expert Tax Solutions can help you understand your situation, address outstanding tax liabilities, and develop a clear strategy for dealing with state taxing authorities so you can move forward with confidence.