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I owed over $1K in back Oklahoma state taxes and received a " final notice" from a law firm in OKC back in late September.  I didn't have the cash so I filled out the coupon and sent the Law firm a 1099-A and the coupon.  I received a certified letter from the Oklahoma Tax Commission.  I now owe $0 in taxes.  However, they did send a bill for $88 for late fees and penalties.  Success!!

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Congratulation, must feel better to have that out of your hair.

Author
No doubt!   Just getting started.  I’ll continue to update my successes.  

When you sent the 1099a did you send them it to file or did you send them a form of one already filed?

Author
The state taxes had been turned over to a law firm for collections.  They had sent a couple letters previously but the last letter stated “final notice” and demanded immediate payment.  So, I filled (typed) out a hard copy 1099A, OID, 1096, 1040V, with the letter they sent.  I sent this packet to the law firm.  In approximately 30 days I received a certified letter from the state tax commission with a coupon for the renaming balance- interest and penalties has incurred but the taxes owed was $0.  I mailed a check of $88.12 and the coupon within three days of receipt.   The tax commission also followed up on the third day with another certified letter and another coupon.   I resented it as well.  I confirmed the tax commission processed my check of $88.12 on that same third day.  I have not received any more info from that transaction. I have the copies I can upload if necessary. 

In regards to the 1099a the lender, was the lender your name or the treasury name and address?

Author
Lender:
United States Treasury
1111 Constitution Avenue NW
Washington DC 20224
US-Phone 800-829-1040

52-0907065

Borrower:
First-Middle: Last., Beneficiary
SSN#

Account Number: I put in the number listed on the bill

Description: OTC taxes

I typed all the info on both the 1099-A and the 1099-OID using the top form and voided the blank forms- I sent the whole form.   I endorsed the back of the 1099-A with the wetting signature in blue ink.  I sent blank 1096 and 1040V. I did not send a photo copied 1096. I ordered and received the 1096 from the treasury.  

Also, I typed the amount owed in box 4.  Box #2 contained an additional 5% which I mentioned in the cover letter to cover the firm’s expenses to process and file.  

Please understand that I also sent the remittance coupon provided by the law firm.  So, I don’t know which or both was successful.  Nevertheless, I now owe $0 in Oklahoma state taxes. 

Congrats on getting those taxes paid!

Providing the 1040-V, 1096, 1099-A and OID hard copies likely helped a lot. I'm going to do that next time. Thank you for sharing 🙏

Do you think it is better to wait till this action goes into collections, or deal with the tax board directly. Just asking, cause I just received a similar letter from California, state franchise tax board.

Could you please show images of how you filled out each thing including the coupon?

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I Also think that you giving the law firm 5% created a fiduciary obligation to them to work in your best interest that was a smooth move thanks for the information and coaching Chris and Crew!!

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Author

Perhaps. I’ll continue to use the same method.

I owe $58000 in loan I took For my Business ASP can I do that to pay it? That will be great. buy the way I'm 100% owner of this business.

Wonder if I should amend my LLC to show my Beneficiary name as the owner. If I did this could I then pay a business tax debt through a 1099-A?

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Congrats!

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Mad love for grabblers - they just could not refrain from assessing you penalties/interest on a zero balance due. lol. The final result minimizes most of the disgusting taste they leave behind though

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No doubt. Like Chris always says "they'll collect...they'll collect".

Author Best Answer

Norman, the answer to your question is a firm NO.  You're business is not the same number as your SSN. 

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Did anyone give you the answer?

I will think will be the same proses. 

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