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Resolving a Texas State Tax Debt

Resolving a Texas State Tax Debt

By on Dec 12, 2017 in Debt Relief, Tax Debt, Tax relief | 0 comments

Resolving a Texas State Tax DebtIf you owe back taxes to the state of Texas, you will want to resolve this tax debt as soon as possible. Interest and penalties add up very quickly – you can expect a 5% penalty if you are 1-30 days late paying and expect to pay a 10% penalty if you are more than 30 days late paying taxes. Finally, if you fail to pay until after you receive a Notice of Tax/FEE Due, you will pay an additional 10% penalty, bringing your total penalty to 20%.  In addition, you should be aware that statutory interest also begins to accrue on the 61st day after the due date.


These penalties and interest can really make a difficult problem even worse – and before you know it, your tax debt is compounded, leaving you owing the state of Texas as much in penalties and interest as actual tax debt.


Strategies for Resolving Your Tax Debt


If you’re looking for strategies to resolve your back state taxes to minimize the overall impact on your financial situation, you do have options.  The first thing to consider is whether you can access personal funds (at a low-interest rate) to pay your debt off immediately.

A personal loan from your bank or a loved one with a low-interest rate or a low-interest credit card are options to investigate. If you have the option of paying the state of Texas quickly and not accruing the stiff penalties and interest, that is likely your best bet.  If this is not an option, you can also explore applying for an installment agreement, which gives you the option to pay your tax debt over the course of several years, rather than all at once. This can really help if you have an immediate cash flow issue and also shows the Texas Department of Revenue that you are making attempts to pay. You should be aware that even with an installment agreement, you will still be responsible for interest and penalties.

If you believe that you are simply unable to pay the amount that you owe the state, you can also consider applying for an Offer in Compromise.  This program allows you to pay less than you actually owe.  An Offer in Compromise is not easy to get approved, and you should be aware that you will have to provide detailed financial information including information about your income and assets to prove that you are unable to pay the full amount due.

Texas Tax Relief Specialists


Success Tax Relief specializes in helping Texas taxpayers solve difficult tax problems. If you are unsure how much you owe, or would like help coming up with the best strategy to help resolve your tax debt once and for all, contact us today at 877-825-1179 or schedule a free consultation.  Our team can help you analyze your options and come up with a solution that minimizes the overall impact on your financial situation.  We can even handle all the paperwork associated with an installment agreement or an Offer in Compromise, and we’ll personally manage all communication with your state tax office.  Let us take this burden off of your shoulders today!

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