Does the 12-411 process apply to state income taxes?

The 12-411 process is a federal remedy—its success is guaranteed at the federal level. In most cases, states do reciprocate the results of the process and honor the same exemption. However, this is not guaranteed in every state. Notable exceptions include Indiana and New Jersey, where state tax authorities may not fully recognize the federal exemption. For that reason, we can only promise results at the federal level, though most clients do see full relief from both federal and state income taxes.