Find the Best Tax Relief Services in Baltimore, MD

Common tax issues in Baltimore

Common tax problems in Baltimore include liens, levies, wage garnishments, back taxes and payroll taxes.

• IRS liens and levies: If you do not pay your tax debts, the IRS can seize, or levy, your assets (e.g., bank accounts, Social Security benefits) and file a lien against your property.
• Wage garnishments: An individual who fails to pay taxes may forfeit part of their wages each pay period to the IRS until the tax debt is satisfied or they come up with another payment arrangement.
• Back taxes: Back taxes are tax debts at the federal, state or local level that you didn’t fully pay in the year that they were due. As time goes on, back taxes accrue interest and penalties, leading to larger debts that many find difficult to pay back.
• Payroll tax debt: When employers fail to pay the proper amount of payroll tax, they owe the IRS the remainder. Employers sometimes choose to only partially pay their payroll taxes within a specific period to allocate the funds elsewhere. However, this tactic leads to potential payroll tax debts at the end of the year.

How to get tax relief in Baltimore

When you owe taxes to the IRS or Maryland but do not have enough money to pay your entire bill, a tax relief company can help. Tax relief companies may be able to lower your tax debt or arrange a manageable payment plan. Common types of tax relief in Baltimore include:

• IRS installment agreement: This option allows Baltimore residents to pay their taxes in monthly installments over a period lasting more than 120 days. The IRS also offers short-term payment plans.
• Offer in compromise: An offer in compromise allows you to settle a tax debt to the IRS for less than you owe. The IRS only accepts an offer in compromise if it believes the amount is the most it can expect to get within a reasonable time period.
• Penalty abatement: If you have been penalized for failing to file a return or failing to pay on time and you had no penalties in the previous three filing years, or an extraordinary circumstance preventing you from filing or paying, you may be eligible for penalty relief.
• Innocent spouse relief: If your spouse improperly reported or omitted information on a joint return, you may be off the hook for paying certain taxes, interest and penalties.

Baltimore tax relief FAQ

How does tax relief work?

Tax debt relief companies usually assist customers by setting up payment plans to pay off tax debt or looking for various forms of tax relief. First, the tax relief company reviews your tax and financial situation. Its staff, usually tax experts, attorneys, enrolled agents and certified public accountants, then determines the best solution for your tax debts and communicates with the IRS or state tax agency on your behalf.

How much does tax relief cost in Baltimore?

Tax relief in Baltimore costs anywhere from $750 to several thousand dollars. Baltimore tax relief companies generally have a time-based, percentage-based or flat-fee cost structure. Often, the amount a tax relief service charges depends on how much you owe and how long setting up your tax relief strategy takes.

How do I check if I owe Maryland state taxes?

Baltimore residents can use the Comptroller of Maryland’s website to determine if they owe taxes, make payments and find answers to their tax questions.

Does Maryland accept federal extension?

If you filed for a federal extension and expect not to owe any taxes to the state of Maryland, you don't need to take any action to get a six-month extension. Otherwise, you need to mail payment along with Maryland Form PV to the Comptroller's Office of Maryland.

Can you pay Maryland taxes with a credit card?

Yes, Maryland allows taxpayers to pay via credit card.

Do Maryland state tax liens expire?

Yes, Maryland state tax liens expire 20 years after the date of assessment.

What is the punishment for not paying taxes in Maryland?

Baltimore residents who fail to pay taxes are subject to penalties and interest, salary liens, license holds, tax liens, asset seizure, fines and even imprisonment in some circumstances.

Are tax relief companies in Baltimore legitimate?

Yes, there are legitimate tax relief companies in Baltimore. When searching for a tax relief company, ask about its success rate, certifications and staff qualifications. Legitimate tax relief businesses employ tax attorneys, certified public accountants and/or enrolled agents.