Failure to file a required tax return or pay taxes owed in the state of Texas can result in serious consequences, including liens and criminal charges. Before such measures, however, there are usually a variety of procedures and things a person or business can do to help improve the situation.
The first thing every person or business should do to avoid tax troubles is to work toward filing of accurate returns and paying taxes on time. If, for any reason, these steps aren’t taken, then the Texas Comptroller‘s office will send a letter with an estimated tax billing. At that time, entities should take immediate action to work with legal and financial resources to resolve the matter.
The longer a tax is delinquent, the more it costs. A 5 percent penalty is issued when taxes are paid one to 30 days late. Taxes paid 31 to 60 days late accrue a 10 percent penalty. After that, penalties as high as 20 percent are levied, along with interest. Penalties and interest can also accrue on unpaid portions of tax, making it important to make accurate reportings and payments.
If a taxpayer refuses to pay taxes and does not work with the state to make arrangements for taxes, the state can take several actions. The state can file liens against property the taxpayer owns, freeze or seize certain assets, demand that the person post a security bond, suspend certain business and other permits and even file criminal charges against the individual.
Individuals who receive notice that any of these actions is being taken against them should act immediately to protect their own interests. Not every tax bill is accurate, which means individuals and businesses should review all information and seek expert advice when necessary to keep their finances in order while dealing with tax matters.
Source: Window on State Government, “Tax Billings and Past Due Taxes” Aug. 29, 2014
