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Lane
Lane, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3119
Experience:  Providing Financial & Tax advice since 1986
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Same problem of sales and use taxes. The state put a lien on

Resolved Question:

Same problem of sales and use taxes. The state put a lien on our property, what other ways can they collect the monies they are asking for?
Submitted: 6 months ago.
Category: Tax
Expert:  Lane replied 6 months ago.

Lane :

Hi, help me understand a little better exactly what you're asking, if you would please? Can you not look at your records to see whether these tax es were paid? ... You MOST certainly ask for an accounting from the state, expressing to them that you believe that you have paid, and would like to see their documentationa...

Lane :

I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here) ... Give me a little more detail if you can, and we can go from there (I can't see any PREVIOUS questions here, the system just shows me the question you just asked ... "Same problem..."


Customer:

We are talking sales and use taxes on materials provided for jobs we were working on when the company went out of business due to default. My accounting person provided monthly statements to the state based on sales tax due from the contractors on our invoices to them within 45 days. We were not paid all monies with the bulk of our receivables going to our bonding company who ultimately spent $3,000,000. in excess costs to complete the jobs.

Lane :

Ahh there you are ... just a sec.

Lane :

OK, I think this is just as communications issue. (Their system is just kicking it out, because of the mis-match) ... I would write a letter, stating it exactly as you have here, send it certified a,d clarify that you were never paid, hence these were not complete sales

Customer:

We will try this, however, this is the state of Maryland. We filed bankruptcy and were discharged but property is not immune from a lien. What other alternatives do they have in collecting such as future income tax credits.

Lane :

You've nailed it, they may not go to the trouble and cost to EXECUTE the judgment (attaching property, etc), but stopping a future tax refund is certainly something they'll (their system) will watch for.

Lane :

But again, if these wer not sales for which you received $, you really do not owe ... might not hurt to get an EA or tax attorney o document this for you, (through the channels that they can go through), rather than your going round and round with someone in a state (or outsourced) call canter

Lane :

"center"

Customer:

My wife and i are on social security and we cannot afford an attorney or an accountant. Does the state have the right to take a tax refund, other locations on the internet say no.

Lane :

My understanding is that, if they (1) Pay for an attorney to get an actual judgment lien (through a court) and then (2) go to the trouble of providing you notice and (3) Execute that lien (ANOTHER hurdle for them) ... they can .. (please don't shoot the messenger here, just trying to help you potentially "see around some corners" ............... BUT the STATE HAS THE BURDEN OF PROOF ... But, If I understand correctly, that is NOT something they can ever prove if you never collected the money ... Is having your bankruptcy attorney show proof (and/or documentation from the bonding companies) an option?

Lane :

Let me check on something here

Lane :

... just saw this from MD dept of taxation:

Lane :


















CATEGORY:



MARYLAND TAX COURT



229



SUBJECT:



General Information



010



TOPIC:



Exhaustion of Administrative Remedies



025


Lane :

Once the taxpayer's application for revision or claim for refund has been received, the Comptroller's office will schedule an informal hearing. TG13-508(c) ... If a taxpayer files an application for revision or a request for refund and then does not receive a response for 6 months, the claimant may assume that the claim is disallowed and may appeal directly to the Tax Court. TG13-510(b).

Lane :

You can get a petition for the tax court here: http://www.txcrt.state.md.us/ ... BUT your mentioning this to the collectors, (that you did not collect dollars, that you do not owe taxes on dollars that were never collected and that you WILL make petition to MD tax court, might change the :Flavor of things, and get them to allow you to send in (re-send in) documentation

Lane :

I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here)

Lane :

PLease let me know if you have any other questions at all

Lane :

Lane

Lane, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3119
Experience: Providing Financial & Tax advice since 1986
Lane and 2 other Tax Specialists are ready to help you
Expert:  Lane replied 6 months ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

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Expert:  Lane replied 6 months ago.

Thanks so much!

I wish I had easier answers, but I think that if you take the initiative here, you'll be fine, just don't let those front lines collectors intimidate you

Lane
Customer: replied 6 months ago.

The state did file a lien but they will never collect on it because of prior liens taking precedence and would have to start over again if we bought property in Maryland which is unlikely unless this matter gets settled. This is why the questions on tax returns which we have ready to file for amended returns.

Expert:  Lane replied 6 months ago.
Ok I see. But yes. (Again I'd send everything in TO the address on any notice and simply dispute, but on future refunds (actual refunds) they can use that

May be stating the obvious here, but if you don't over withholding there's nothing to refund you won't have a problem

Lane

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