AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 4/4/2008 Subject: WA State Sales tax
Question Mr. Wellman,
My construction company is currently two months behind on paying our states sales tax. In my most recent conversation with the state DOR rep, he informed me that we have approximately 1 week to pay all owed taxes for that period (approx. 33K) plus a 25% penalty. If we do not they will put a lien on our bank accounts which could put us out of business (couldn't pay vendors, employees and lease agreements), is there any way to negotiate a term with the state? Also, the 25% penalty seems like robbery to me, is this negotiable?
Thanks
Answer I cannot answer for Washington specifically, because I have not dealt with them. But I have dealt with dozens of states and they can all be negotiated with and there are in all cases a way to stop their most egregious of behaviors. The penalty seems outrageous given that you are only two months behind but again, I cannot give you a specific answer because I have not dealt with them. Go to my website irsos.com and e-mail me if you think you might want help.
