Not all delinquent taxes are related to the Internal Revenue Service. Businesses and individuals have a responsibility to report assets and pay taxes to state and local jurisdictions. The filing of accurate returns at all levels is one way to ensure tax compliance. For a Dallas business operating in another jurisdiction, property taxes and not income, caused a $5.1 million payment to the county.
According to reports, the company applied for a community housing exemption that would have reduced its tax burden. That application was denied for the years between 2008 and 2012, resulting in a requirement that the company pay all past due taxes. The company also owed property taxes to Bexar County for 2013.
According to the county tax assessor, the company’s tax bill was the largest in the county. The 2013 bill was $587,633.94, bringing the total amount due to just over $5 million. The money was collected in Jan. 2014, according to the tax assessor’s office.
The county tax assessor reported that the office had been unable to collect the taxes for many years. He reported that the county aggressively pursued the company in an attempt to collect the taxes, stating that every business and individual was required to pay a fair share.
Businesses or individuals who have assets in multiple jurisdictions may find themselves with complex tax burdens. Understanding the rules in all areas and filing tax statements in an organized and timely manner is one way to ensure tax burdens are not increased. Filing late and failure to pay taxes can result in exponential increases due to fees and fines. If tax bills become too much to pay, legal measures may be able to save personal or business finances from bankruptcy due to untenable tax demands.
Source: San Antonio Business Journal, “Dominion Park Apartments owner pays out $5 million in past due taxes” James Aldridge, Jan. 02, 2014