We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What is a State Agreement [Internal Revenue]? A Comprehensive Guide
Definition & Meaning
The term State Agreement refers to a formal arrangement between a state government and the federal government. This agreement is established under section 6363 of the Internal Revenue Code and allows for the federal collection and management of certain taxes that the state has designated as qualified. Essentially, it facilitates cooperation between state and federal authorities in tax administration.
Table of content
Legal Use & context
State Agreements are primarily used in the context of tax law and administration. They enable states to streamline the process of tax collection by allowing federal agencies to assist in managing state taxes. This can involve various legal areas, including:
Tax collection and enforcement
Intergovernmental relations
Administrative law
Users may find relevant legal forms and templates through US Legal Forms to help navigate the procedures involved in establishing or managing a State Agreement.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of State Agreements:
Example 1: A state enters into a State Agreement with the IRS to allow federal agents to collect state income taxes from residents who owe back taxes. (hypothetical example)
Example 2: A state agrees to let the federal government administer its sales tax collection to improve efficiency and compliance rates. (hypothetical example)
Relevant laws & statutes
The primary legal reference for State Agreements is:
26 U.S.C. § 6363 - This statute outlines the conditions and requirements for entering into a State Agreement.
26 CFR 301.6361-4 - This regulation provides additional details on the implementation and administration of such agreements.
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Has specific provisions for local sales tax collection under State Agreements.
Texas
Allows for broader federal involvement in property tax assessments.
New York
Includes unique regulations for income tax collection through federal channels.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Common misunderstandings
What to do if this term applies to you
If you believe a State Agreement may affect you, consider the following steps:
Review your state's tax regulations to understand how they may be impacted.
Consult with a tax professional or attorney if you have specific questions or concerns.
Explore US Legal Forms for templates that can assist with tax-related documentation and compliance.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.