State Levy

Individual Taxes: State Levy

What is a state Levy?

Tax levies are not limited to federal taxes. States can also issue levies to collect back taxes. Many people who owe taxes to the federal government also owe taxes within the state where they reside. Each state has its laws and methods for collection, although many state agencies operate similarly to the IRS when issuing liens and levies. However, some states use their systems, so it’s essential to be aware of how your state will collect on any taxes you owe. It’s also important to note that you will need to fill out different paperwork and take action with a different agency to set up an installment plan, file an appeal, or submit an offer in compromise. 

If you need tax forms for your state, you can get them by following the link.  State Tax Form links       Similar to the IRS, state governments can assess interest and penalties on any taxes you owe. Additionally, states can revoke licenses issued by other agencies, such as driver’s licenses, hunting and fishing licenses, and even professional licenses. It’s rarer for a state’s government to revoke a professional license since that could impact a taxpayer’s ability to pay back their taxes, but it is an option they have if the taxpayer is not responding to other methods of collection.