How to Handle a Sales Tax Warrant Effectively
Mark L Stone, CPA, MST
Providing solutions for sales and use tax issues | Managing Partner | Sales and Use Tax Consulting
Let's be clear: receiving a sales tax warrant is not good news. It's one of the most critical and adverse tax documents you can encounter. So, what is a tax warrant? Also known as a tax judgment or lien, it signifies that you or your business owes taxes. The government has multiple methods to collect the owed amount.
What can the government do?
The government can employ various tools to retrieve their money, including placing liens on property, levying funds from bank accounts, and retaining your tax refund. It can also lead to involuntary income execution. This is where your employer is compelled to withhold (garnish) a portion of your paycheck and remit it to the Tax Department.
A tax warrant can generally last up to 20 years, though the statute of limitations can vary. Moreover, it can negatively affect your credit score. It typically remains on your credit report for seven years after the tax liability is fully paid. It's also a public record, appearing in searches for individual or business information.
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Sales Tax Defense LLC can help with a tax warrant on sales tax!
Sales Tax Defense LLC offers a range of services to assist if a tax warrant has been issued for sales and use tax. We can help you obtain a satisfaction of judgment if the liability that generated the tax warrant has been paid. If you believe it was issued in error, we can assist in getting it vacated (“erased”), which effectively removes the warrant. Additionally, if the warrant has expired, we will work with the Tax Department to get it “extinguished.”
We also utilize other tools to achieve more favorable outcomes for our clients, such as an Installment Payment Agreement (IPA). We can also suggest an Offer in Compromise (OIC), which is a program for tax, interest, and penalty forgiveness.
If you are dealing with a tax warrant or the underlying tax liabilities, Sales Tax Defense LLC can provide the necessary support and solutions. Contact us for assistance in navigating and resolving these serious tax issues effectively.