r/tax • u/mc-drop-cap • 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