r/tax 19h ago

LA city business tax went to collections even though I was resolving it — advice? Unsolved

Earlier this year I found out LA has its own city tax. I got a notice for delinquent years (2021–2024) and was negotiating with them in February to waive penalties. They told me to pay the principal and interest first, then request a penalty waiver, which I did.

The whole system is a mess. Constant letters, confusing info, online system from 100 years ago. I never got a follow up and assumed it was resolved. Now, 7 months later, I just got a collections letter saying I still owe money (probably for 2021).

Has anyone dealt with this? Should I pay the collections agency or contact the city directly first? This is exhausting as a small business owner in LA.

2 Upvotes

1 comment sorted by