Interest and Penalties

Failure to pay taxes on time will result in additions to your total liability in the form of interest and penalties. These vary by tax type and can accrue over time if the liability continues unaddressed.

In particular cases, if you can prove reasonable cause (rather than neglect) for your failure to pay, such additions to your liability may be waived.

Objections and Appeals

Delinquency on tax or tax-related payments may result in the issuance of a Proposed Notice of Assessment from the State. If you disagree with the Notice, you have a brief period after the mailing date of the Notice to object to it.

After the objection period expires, you will receive a Notice of Final Assessment. Again, you have a brief period after the mailing of the Notice in which you may appeal it to the appropriate review board or appeal court. This process can repeat one more time upon the final decision of the respective authority.

Personal Liability

Anyone charged with the responsibility of collecting, paying over, and otherwise accounting for taxes who fails to do so may be personally liable for penalties.

Liens

Failure to pay a tax and any associated penalties will result in the State filing a lien. This is to protect the State’s interest, and further failure to address the dues may prompt the lien’s enforcement. While the State does not actively notify credit agencies of a lien, it is a matter of public record. So it can still affect your credit if an agency decides to check.

Collections

If you are behind on your taxes, the State may take actions to forcibly collect them. Such actions may include anything from the filing of liens to the seizure of your property. You will receive notification of any actions that the State intends to take.

Installment Agreements

You may be able to pay your tax liability in installments if you cannot pay the initial tax in full. Interest and penalties may continue to accrue on the unpaid portion of your liability even as you pay it off, and any tax credits due to you may be applied to your liability.

Power of Attorney

If you complete the appropriate documentation, you may have a qualified agent represent you before the State.