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State Tax problem

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K_J
Regular Contributor

State Tax problem

Okay, this is my story; I got a letter from my county November 2010 stating that we own $2894 for back taxes 2007 and 2008. WOW. How is that possible?? I have been getting my tax refund year after year without a letter. Well I called the state and was told that when  IRS audited us back in 2009 and I paid back some money they (IRS) sent the information to the state and they (the State) recalculated and that was the amount we owned. My question to them was how come I didn’t get a letter till now? You have been sending me refunds why didn’t you take it from my refunds? Mind you this amount is with over 600 dollars in interest. At this time I was already boiling at 100 degrees. To make the issues complicated my wife runs a day care with 2 children that use state vouchers, so basically the state pays her, and still did not send letters. if you own taxes you couldn’t receive payment of any type from the state.

Okay, so my wife called and arranged for all her pay from the daycare to go towards the payment of the taxes and next thing a lien is filed for non compliance after 3 months of taking her paychecks. Wow! We went into our savings account and pay it all off. Then we found this lovely site last December, started reading and decided to GW the county as suggested for a letter we could file with the 3 credit bureaus. We ran our CR’s yes it is showing as paid but we want it removed, because we want to buy a house in a year or 2. So we sent a letter to the county and they told us it is not in their jurisdiction but that they had forwarded a letter to the state with our GW letter. Then on Saturday we got a letter from the state

 

I am in receipt of your letter dated February 2, 2012. In order to better assist you I am forwarding your correspondence to edited , Director of the Compliance Division. Ms. edited or her assigned representative will be in touch with you shortly if you wish to contact the Compliance Division directly, you may send an email to edited or call 410-767-155?

 

So my question is where do I go from here? Let them figure it out or call the number??

 

 

 

Edited to remove some names and direct contact info. - llecs, myFICO moderator


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
, current Score (3/16/17) EQ: 724. Goal Score: 700


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Message 1 of 5
4 REPLIES 4
llecs
Moderator Emeritus

Re: State Tax problem

MD taxes are a pain to deal with. I'm an employer in the DC area and pay taxes to MD. Also have employees who live in MD and they're always coming to me after being audited, etc. They're ruthless.

 

Sounds like there was an error in your tax return. Are you a self-preparer? If not, see your accountant and maybe they can amend the return factoring in the changes the state made and maybe find additional deductions to offset that loss.

 

Why no letter 'till now? Because they are slow, IME. But, boy, are they quick at seizing your bank accounts if you owe.

 

I'd call them and see what they say.

Message 2 of 5
K_J
Regular Contributor

Re: State Tax problem

There was an error, we used H&R B software but the software did nt alert us to deduct self employment tax for wife, thats why we got burned..


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
, current Score (3/16/17) EQ: 724. Goal Score: 700


Take the FICO Fitness Challenge
Message 3 of 5
llecs
Moderator Emeritus

Re: State Tax problem

Smiley Sad    One year I failed to include that into my budget and file quarterly due to the amount of the tax. It was a shocker when I finished my taxes that year. Joys of biz ownership.

Message 4 of 5
K_J
Regular Contributor

Re: State Tax problem

.. So I took the initiative and placed the call, after pleading my case this lady wouldn’t work with me because the error wasn’t from them apparently.  So I told her I would call the director and detail how they caused me and my family a home. Mind you my county did send the GW letter directly to the Compliance Director and this lady was assigned to look into my case by her.

Anyway she said " we are not supposed to remove a lien if it wasn’t our mistake, but if you could prove its stopping your purchase we may remove it for you, Just fax us a letter from the lender. I just called my LO she wasn’t in the office but tomorrow I am faxing that thing over. Wish me luck.


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
, current Score (3/16/17) EQ: 724. Goal Score: 700


Take the FICO Fitness Challenge
Message 5 of 5
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