Oklahoma Back Tax Resolution Options
If you cannot afford to pay your taxes, the OTC recommends filing your return and paying what you can. Then, the OTC will send you a billing notice outlining the tax, penalties, and interest due. At that point, you need to contact the OTC directly or work with a tax professional to make arrangements for your tax liability.
The options vary based on your situation. Here is an overview of the essentials as well as links to pages with more information on OK payment plans and offers in compromise.
What Is A Mechanics Lien In Oklahoma
Oklahoma mechanics liens concern persons in the construction industry. Contractors, material suppliers, laborers, and other persons who supply materials, provide labor for, or render any other type of professional service towards the construction, repair, or alteration of a property, whether public or private, may file a mechanics liens against debtors in Oklahoma. For private properties, mechanics’ liens attach to the property however, in the case of public properties and projects, mechanics’ liens attach to the public funds related to the project.
In Oklahoma, equipment lessors may not file mechanics liens against properties for agricultural purposes or properties under the homestead exemption. Also, depending on contract terms, staffing companies in Oklahoma may be exempt from mechanics liens. Contractor and laborers in direct contact with the property owner must file mechanics liens within four months of providing labor, services, or supplying materials. Sub-contractors or parties without direct contact must file mechanics liens within 90 days of providing materials, providing labor, or offering services. Lien claimants must send lien notices to property owners within five days of filing the lien. Oklahoma lien claimants may not enforce liens until 90 days after filing the lien however, lien claimants must enforce the lien within one year of filing.
Other Enforcements For Unpaid Oklahoma Taxes
The state publishes a list of the top 100 tax delinquencies over $25,000. This list is on the OTC’s website, and Oklahoma-based newspapers often reprint the list. To be on the list, your total amount due must be over $25,000 and more than 90 days delinquent.
However, you do not necessarily get a spot on the list if your unpaid taxes are over $25,000. Instead, you need to be in the top 100, and at the time of writing, every person or business on the list owed over $450,000. Appearing on this list can hurt your personal and business reputation significantly.
In the past, the state dismissed employees who owed state back taxes. Luckily, this law was overturned in 2020. Now, state employees can keep their jobs, but the state has the right to garnish their paychecks for unpaid taxes.
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Tax Commission: Indians Not Exempt From Oklahoma Tax
Although the U.S. Supreme Court has held that the Muscogee Nations reservation still exists in Oklahoma for purposes of a federal crime law, a subsequent decision by the U.S. Supreme Court also means most tribal members living in Oklahoma still have to pay state taxes, according to a new Oklahoma Tax Commission ruling.
Gov. Kevin Stitt, a Cherokee who has fought to maintain state sovereignty in the aftermath of the U.S. Supreme Courts reservation decision, hailed the commissions action.
I am pleased to learn that today the Tax Commission released a decision reaffirming that every Oklahoma citizen is required to pay their fair share, Stitt said. This is a ruling in favor of certainty, fairness, and equality for all Oklahomans. We all drive on the same roads, send our kids to the same public schools, and benefit from the same state services, so it is only right that every citizen of the state of Oklahoma, regardless of race or heritage, should contribute their fair share.
In McGirt v. Oklahoma, the U.S. Supreme Court held that the Muscogee Nation reservationan area that includes much of Tulsawas never formally disestablished for purposes of the federal Major Crimes Act. That decision has since been expanded to include the reservations of the Choctaw, Chickasaw, Cherokee, Seminole, and Quapaw, covering nearly half of Oklahoma.
Its estimated a McGirt tribal exclusion could result in the loss of $75 million in state revenue each year.
What Is A Lien In Oklahoma
An Oklahoma lien is a security that guarantees the fulfillment of an obligation or performance of an act. Creditors file liens against debtors’ assets a creditor may file a lien against a debtor’s assets as security for the fulfillment of a financial obligation. The lien grants the creditor a legal claim to the debtor’s assets. If the debtor cannot repay the debt or satisfy an obligation, the creditor may take possession of the debtor’s assets, foreclose, and sell them to recover the debt or payment. Liens typically apply to real property however, liens also affect other types of assets, such as livestock, minerals, aircraft, attorneys, and artisans. Liens have differing effects on different categories.
In Oklahoma, there are general liens and specific liens a specific lien applies to particular assets, while a general lien applies to all of a debtor’s assets. A creditor may only take possession of a defaulting debtor’s particular asset with a specific lien, even if the asset does not make up the value of the amount owed. However, with a general lien, a creditor may take possession of as many of the debtor’s assets as will make up the debt or outstanding payment. The Oklahoma Lien Law outlines the state’s provisions on lien establishment, and Oklahoma courts issue the judicial orders required to enforce liens within state limits.
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State Of Oklahoma Ex Rel Oklahoma Tax Commission Et Al V Barnsdall Refineries Inc Et Al
STATE OF OKLAHOMA ex rel. OKLAHOMA TAX COMMISSION et al.v.BARNSDALL REFINERIES, Inc., et al.
Argued Dec. 12, 1935.
Messrs. C. D. Cund, of Duncan, Okl., Earl Foster and C. W. King, both of Oklahoma City, Okl., and E. L. Richardson, of Lawton, Okl., for petitioners.
Mr. L. G. Owen, of Tulsa, Okl., for respondent.
Mr. Justice STONE delivered the opinion of the Court.
This case presents the single question whether an Oklahoma tax of one-eighth of a cent per barrel on oil produced in the state, chapter 132, Oklahoma Session Laws, 1933, when applied to oil produced by lessees of lands of the Osage Tribe of Indians in Osage county, Okl., is within the congressional enactment consenting to a state tax upon the production of such oil. The challenged tax is paid into the state treasury and used to defray the expenses of administering the State Oil and Gas Proration Law . The Oklahoma Supreme Court held that the tax is not within the congressional consent, and accordingly enjoined its collection as imposing an unconstitutional burden on the Indian leases, which are deemed to be instrumentalities of the federal government. Barnsdall Refineries, Inc., v. Oklahoma Tax Commission, 171 Okl. 145, 41 P. 918. We granted certiorari, 296 U.S. 556, 56 S.Ct. 97, 80 L.Ed. 392, to review the judgment of the state court the case being of public importance because involving relations of the state to the national government.
Statute Of Limitations On Oklahoma Tax Liabilities
Under Section 53 of Article 5 of the Oklahoma State Constitution, the state legislature does not have the right to extinguish any debts to the state. There is an exception for property taxes, but the state cannot extinguish other tax liabilities. In other words, Oklahoma has no statute of limitations on tax liabilities. The state has the right to collect them indefinitely.
In 2005, the state legislature proposed amending the constitution to place a 10-year statute of limitations on state tax liabilities. But, unfortunately for people with Oklahoma back taxes, this amendment did not pass.
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About The Oklahoma Tax Commission Office
The Oklahoma Tax Commission Office, located in Oklahoma, OK, is a government agency that issues driver’s licenses and offers other motor vehicle services. Also called a Department of Motor Vehicles or Bureau of Motor Vehicles , the office’s services include administering vehicle titling and registration, enforcing Oklahoma emissions requirements, and issuing special parking permits. The office also issues IDs for non-drivers that act as valid Oklahoma photo identification.
Interested parties may contact the DMV/BMV for questions about:
- How to get an Oklahoma driver’s license
- Renewing Oklahoma driver’s licenses
- Scheduling driving permit and road tests
- Making an Oklahoma DMV appointment
- Registering a motor vehicle
Payment Plans For Oklahoma Back Taxes
The OTC is willing to let taxpayers pay off their back taxes in monthly installments. To set up a payment plan, you must owe more than $100, and you must meet the eligibility criteria.
Most importantly, you must contact the OTC to set up the payment plan before your account is placed with a third-party collection agency. To learn more, check out our overview of an Oklahoma tax commission payment plan.
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Free Lien Search In Oklahoma
Interested persons may search for liens in Oklahoma by querying relevant government agencies. This search can be performed using the state online search tools provided on the official website or a visit to the courthouse or other county buildings. The information retrieved from such websites may include:
- The name and address of the lienee
- The name and address of the lienholder
- The type of lien contract
- Document or file number
- The lien expiry date
The Oklahoma County Clerk’s Office advises the public to visit the Clerk’s office to review the actual records, which are available for inspection and reproduction as information available online may not be official/complete.
How To Start A Business
These are the essential steps required to form a business in Oklahoma. Due to the complexity of forming and operating a business, you may want to consult with financial and legal business advisors such as attorneys, accountants and bankers before making any decisions or taking action.
- Small Business Startup Guide
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Oklahoma Back Taxes: Resolution Options And Collection Activities
The Oklahoma Tax Commission administers personal and business taxes in Oklahoma. You can file individual, corporate, franchise, and partnership income tax returns with the OTC as well as Oklahoma sales and withholding tax returns.
But what if you can’t afford to pay your Oklahoma tax liability? The state offers several options for taxpayers who cannot pay their tax bills in full, but you need to act promptly. The OTC outsources tax collection to private collection agencies, and once your account has been assigned to an agency, you can no longer make arrangements with the OTC.
To help you out, this guide explains the resolution options for back taxes in Oklahoma. Then, it looks at what can happen if you don’t pay your back taxes.
What Is A Judgment Lien In Oklahoma
Oklahoma judgment liens are judicial orders that enforce payments made to a debtor. Most liens can lead to a judgment lien if the creditor opts to enforce the lien and petition the court for a judicial order. For example, tax liens and mechanics liens become judgment liens if the lien claimant enforces the lien. Judgment liens can attach to real property like land, houses, condos, or personal property like antiques, jewelry, and other valuables. In Oklahoma, judgment liens are valid for five years. Judgment liens do not apply to houses under the Oklahoma homestead exemption statute.
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Types Of Lien In Oklahoma
There are various types of liens depending on the nature and subject of the debt. They include mortgage liens, tax liens, judgment liens, UCC liens, and mechanics liens.
In Oklahoma, liens are either general or specific, voluntary or involuntary. Liens are general when the lienholder is entitled to any property of the lienee as security for the performance of an obligation. A general lien is not attached to a specific piece of property but is attached to any of the debtor’s assets. In contrast, a specific lien is attached to a specific asset, i.e., an asset is specifically offered as security in exchange for the loan or credit. This also implies that a creditor with a specific lien is limited to the value of the specific asset. When a debtor fails to make payments, they can’t go after the lienor’s unrelated assets.
A voluntary lien is established when a lienee consents to use their property to secure a loan. Anytime a piece of property is financed with a loan, it gives the creditor a voluntary right to a lien. A mortgage arrangement is a common type of voluntary lien. In contrast, involuntary liens are established without the property owner’s consent — examples include a judgment or mechanics liens.
Voluntary Lien Vs Involuntary Lien In Oklahoma
In Oklahoma, asset owners or debtors may agree to voluntarily place a lien on their home in exchange for a loan. For instance, persons who agree to a mortgage consent to a property lien the property stands as collateral for the loan. On the other hand, involuntary liens do not involve the debtor’s voluntary agreement or consent. A creditor may file involuntary liens without the debtor’s knowledge. Tax liens are statutory and are therefore examples of involuntary liens.
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Getting Your Oklahoma Tax Refund
If your state tax witholdings are greater then the amount of income tax you owe the state of Oklahoma, you will receive an income tax refund check from the government to make up the difference.
It should take one to three weeks for your refund check to be processed after your income tax return is recieved. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible.
Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Oklahoma tax refund, you can visit the Oklahoma Income Tax Refund page.
What Is A Property Lien In Oklahoma
Oklahoma property liens are security interests that a creditor holds over a debtor’s property. The lien gives the creditor a legal claim to the debtor’s property, and the creditor may foreclose or sell the debtor’s property to recover the outstanding amount or obligation. A liened property is a collateral for the debt it assures the creditor that the creditor’s interests are protected and that the debtor will meet the agreed obligation. There are different property liens, including child support liens, mortgage liens, property tax liens, and Home Owners Association liens.
A debtor may find it difficult to transfer or sell a liened property because a lien transfers with the property. Interested and eligible creditors may file a lien in Oklahoma with the county clerk in the county where the debtor has or is likely to have property.
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What Is A Mortgage Lien In Oklahoma
Mortgage loans enable individuals to purchase houses with loans and long-term repayment plans. Mortgagors who do not meet payment terms or other contractual obligations may be forced to forfeit the home when the mortgage creditor forecloses on the property to recover the outstanding payment.
Oklahoma Mortgage liens attach to property titles therefore, the homeowner or mortgagor may not be able to refinance or sell the house while the lien is active. A mortgage is different from other property liens because mortgages are voluntary by agreeing to the loan terms, the mortgagor willingly consents to make the house collateral and place a lien against the house.
According to Oklahoma Lien Laws, a mortgage takes priority over other types of liens that the mortgagor has at the filing time. In Oklahoma, a mortgage lien is active for seven years the mortgagor must enforce the lien within this period.
Th And 21st Centuries
Attempts to create an all-Indian state named Oklahoma and a later attempt to create an all-Indian state named Sequoyah failed but the Sequoyah Statehood Convention of 1905 eventually laid the groundwork for the Oklahoma Statehood Convention, which took place two years later. On June 16, 1906, Congress enacted a statute authorizing the people of the Oklahoma and Indian Territories to form a constitution and state government in order to be admitted as a state. On November 16, 1907, President Theodore Roosevelt issued Presidential Proclamation no. 780, establishing Oklahoma as the 46th state in the Union.
The new state became a focal point for the emerging oil industry, as discoveries of oil pools prompted towns to grow rapidly in population and wealth. Tulsa eventually became known as the “Oil Capital of the World” for most of the 20th century and oil investments fueled much of the state’s early economy. In 1927, Oklahoman businessman Cyrus Avery, known as the “Father of Route 66”, began the campaign to create U.S. Route 66. Using a stretch of highway from Amarillo, Texas to Tulsa, Oklahoma to form the original portion of Highway 66, Avery spearheaded the creation of the U.S. Highway 66 Association to oversee the planning of Route 66, based in his hometown of Tulsa.
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Oklahoma Offer In Compromise
In addition to payment plans, the Tax Commission will also consider an Offer in Compromise under certain conditions, which they call an offer for settlement of tax liability. When you make an Offer in Compromise, youre effectively asking the Tax Commission to allow you to settle your outstanding tax liability. You pay an agreed-upon amount to cover your taxes owed and the remaining balance is erased. The Tax Commission will only consider a compromise offer when any of the following conditions apply:
- Collection of the tax and any penalties or interest owed would reasonably result in you filing for bankruptcy protection
- The tax owed is uncollectible because a financial hardship has rendered you insolvent
- The tax liability was created as a result of the actions of someone else, such as a spouse
- You believed in good faith that the collection of taxes wasnt required with regard to nonpayment of trust fund taxes
To apply for an Offer in Compromise, youll need to download Packet S from the Tax Commission website. This packet contains the necessary forms youll need to submit as well as instructions for providing supporting documentation. For individual income tax, youll need to fill out Form OTC-600 and Form OTC-600-A, which is a complete financial statement. Youll also need to submit Form OTC-600-E to authorize the release of your financial data and Form BT-129, which is a power of attorney. The completed application should be mailed to: