IRS problems are one thing. Granted, they are one big thing, but they are one thing. State tax problems are entirely different.
The drawback with IRS tax problems over state tax problems is that you can end up owing a lot–a whole lot–to the IRS. Considering payroll taxes, income taxes, self-employment taxes, early withdrawal penalties from retirement accounts, and late filing or late payment penalties plus interest, etc., you can find yourself owing quite a bit of money to the IRS. On the other hand, the IRS can be surprisingly reasonable when compared with the state. Tax law is very old and has been heavily litigated at the federal level.
State tax problems, on the other hand, tend to be smaller in scope but higher in headaches. Because most people only have to pay income taxes to their state, and because state tax rates tend to be much lower than the federal ones, the amounts owed are small when we are dealing with state tax problems. Solving state tax problems, however, is much, much more difficult. This is because the protections and rights that a taxpayer has when dealing with the IRS are simply not there with the state. Tax collections are very aggressive, especially in states like Kansas or Missouri. The state tax collection laws are written to favor the state over the taxpayer, and that’s the bottom line.
The best person to deal with a state tax problem is somebody who . . . lives and works in that state! It doesn’t seem like much of a revelation, but many out of state tax firms claim to be able to work with the states of Kansas and Missouri; don’t be fooled, deal with somebody in your state or who has dealt with your state.
Have state tax problems with Kansas or Missouri? Call Kansas City Tax Mediation and arrange for a free, face to face consultation. Kansas City Tax Mediation: Let’s get through this together.