Four Scenarios Where Taxpayers May Settle Tax Debt in Oklahoma

Owning and operating a successful business in Tulsa is a lifelong dream of many residents. Unfortunately, when business owners face tax liabilities that they are unable to pay, this can often be enough to damage the business severely or even shut it down entirely. Businesses are responsible for holding in trust sales taxes, and these taxes must be paid quickly. Typically, this means within a year. If you find yourself unable to pay these taxes, you could be in serious trouble.

Why the Oklahoma Tax Commission May Agree to a Settlement

Fortunately, there are options out there if you find yourself in this predicament. In some cases, the Oklahoma Tax Commission may even agree to a Settlement of Tax Liability. If agreed, the Tax Commission will allow you to pay less than you owe in full satisfaction of your tax debt. The Oklahoma Tax Commission lists the following reasons for accepting an Application for Settlement of Tax Liability:

  1. When collection of the tax, interest, and penalties that have accrued would reasonably result in bankruptcy and the settlement amount offered is a reasonable reflection of the amount that would be collectible.
  2. When taxpayers are insolvent due to reasons beyond their control, rendering them insolvent, and the amount offered in the settlement reasonably reflects the amount that could realistically be collected.
  3. When the reason for the tax liability is caused by the actions of a person other than the taxpayer, and it would be inequitable to hold the taxpayer liable.
  4. When the taxes owed are trust fund taxes, and the taxpayer believed in good faith that he did not need to collect taxes from the customer.


If you think that you may be eligible to apply for a settlement based on one of these criteria, it is very important that you not act alone. The Tax Commission is not obligated to look out for your best interests as a taxpayer. Having an experienced attorney to negotiate on your behalf can go a long way towards improving your chances of moving past the tax liability and continuing with the successful operation of your business.

If your business owes state sales taxes, do not waste time. Contact us today for a complimentary consultation.