How Can You Get Tax Relief on Your Louisiana State Taxes?

August 15, 2022

More and more people are struggling financially. If you’re having trouble paying your state taxes, you aren’t alone. Because this problem is so common, the state of Louisiana has set up some tax relief programs that allow you to either spread out your payments or reduce the amount you owe. The best way to find out which program is best for you is to speak to a Louisiana tax resolution specialist.

This professional will explain the various options to you and then let you know which ones you might be eligible for. They can also help you fill out the necessary forms, so you don’t make a mistake that could ruin your chances of getting the tax relief you need. Read on to find out more about what the tax relief options are and how you can gain access to them.

What Are the Tax Relief Programs in Louisiana? 

There’s no magical solution to tax problems. In most cases, the taxpayer will have to pay the full amount, especially if they are earning a good amount of money. However, there are certain programs that can help make the state taxes more manageable. The easiest resolution strategy is to spread your payments out over a longer timeframe.

You can do this either via the official channels or by paying the tax now and getting a loan, which you can pay off more slowly. If you think you’ll have trouble doing this, you should look into getting your penalties removed from your account, or you could make the government an offer in compromise. This is an excellent solution because it allows you to pay less, but it’s not easy to be successful with such an offer. Therefore, you’ll need the help of a professional.

Getting Your Penalties Removed from Your Account 

If you don’t pay your state taxes on time, you will have to pay more. Currently, the penalty for filing your return late is 5% added to your bill per month, up to a total of 25%. Filing but not paying will cost you 0.5% per month, up to a total of 25%. In addition to these fees, you will also have to pay interest, which is calculated on a daily basis. For people with a high tax bill, the penalties quickly add up, and they can cost you thousands.

One of the easiest ways of reducing the financial pressure placed on you by your unpaid taxes is to get your fees removed from your account. You might be eligible for this form of tax relief if you can prove that you had a valid reason why you weren’t able to file or pay on time. A good Louisiana tax resolution specialist can analyze your situation and let you know whether this is a possibility.

Setting Up an Instalment Plan 

People who know ahead of time that they won’t be able to pay their state taxes on time should speak to a tax advisor. The professional can let you know whether you’re eligible for an instalment plan, which spreads out your payments over many months. Although you will pay a small fee to set up your instalment agreement, this is still likely to be cheaper than the fees that accumulate when you don’t pay.

What’s more, the instalment plan notifies the government that you intend to pay, so any collection activity will stop immediately. That way, your wages, your assets, and your savings accounts aren’t put at risk. The earlier you set up your instalment agreement, the better. Ideally, you should speak to your tax resolution specialist before the tax due date, since you can avoid fees that way. However, we’re willing to help you no matter your situation.

Using Other Methods of Paying Off the Debt 

The state’s instalment agreement is often a good way of stopping collection activities and extending your deadline. But as mentioned, it isn’t free, and there might be some cheaper options out there. Your tax resolution specialist will help you to determine whether using an alternative method of paying off your debt could be better.

For instance, you could borrow some money from your family or friends and then pay them back later. That way, you won’t have to pay interest. Similarly, you might be eligible for a 0% credit card or a low-interest personal loan. Together with your tax advisor, you will explore all these options, so you don’t end up paying more than you have to.

An Offer in Compromise 

Sometimes, it’s simply not possible for you to pay off all your debt. Since accruing it, your income might have decreased, or you might have more expenses that are swallowing up your extra cash. If you genuinely can’t pay the state what you owe, there is a program called the offer in compromise, which allows you to pay less than the full amount.

Unfortunately, it can be hard to prove that you won’t be able to pay the full amount, so you have to collect evidence and fill in the correct forms. You should speak to your tax resolution specialist before submitting your offer because they can let you know whether it’s likely to get accepted. If not, the tax advisor can speak to you about your alternatives and help you figure out a way to pay all your taxes.

How Should I Choose a Louisiana Tax Resolution Specialist? 

Anyone who has problems with their state or federal taxes should speak to a specialist about the tax relief programs available to you. Not filing or not paying your taxes can have dramatic consequences. While you might only have to pay a fee at first, the government can take additional action over time.

They might garnish your wages, take away your property, or take money out of your bank account. To prevent this from happening, you need to work with a competent tax specialist. The best advisors are those with a lot of experience and direct ties to the IRS. Always speak to your professional before hiring them. That way, you’ll know if they are a good fit.

Select an Experienced Agency 

Experience is one of the most important criteria. An agent who has dealt with the IRS and the local authorities for many years will be able to resolve your tax issues much faster than someone who is new to the field. Here at Geaux, we only hire specialists who have excellent credentials. In fact, our founder used to work for the IRS, so he has unique insight into how to best approach the government.

Attend an Initial Consultation 

Although you can find out a lot from a website, there’s nothing like speaking to the tax resolution specialists in person. If you have a tax issue and you’d like professional help, you should get in touch directly and ask for an initial consultation. By speaking to the tax advisor, you can find out if they are professional and knowledgeable. What’s more, you can determine whether they are friendly and easy to work with.

People who are worried about paying their state taxes should contact a Louisiana tax resolution specialist as soon as possible. There are various tax relief programs that can make it easier to pay, either by reducing the total amount or spreading it out over a longer timeframe. Send us a message now at Geaux Tax Resolution in Mandeville, LA and ask to speak to one of the advisors. They can help you find the best program for your individual situation.