Indiana Taxing Information
One means of enforced action that the State may take to resolve delinquency is a levy on your bank accounts. The State will issue a warrant to your bank and take up to the amount stated on the warrant directly from your accounts if it is available. Typically there is a brief holding window during this process, during which you may seek professional assistance for preventing further collections or potentially regaining levied funds.
If you do not address your tax liability after you receive your first notice of it, you will receive a Demand Notice of Payment, which should be addressed promptly if possible. The Demand Notice will provide some details of context and information about what comes next. After receiving a tax bill from the State, there is a period during which you may appeal it in writing.
Priority One: Stopping Aggressive Enforced Collections
Offer in Compromise
The State may, under very particular conditions, accept settlement of your liability for less than the full amount. This is done through an Offer in Compromise. You must be prepared to closely follow all terms and conditions given by the State. These can include your having filed all required tax returns, completed the application, and provided any requested supplementary documentation.
As the process requires significant preparation, it is recommended that you seek professional assistance before attempting to submit an Offer in Compromise.
Power of Attorney
While you may represent yourself before the State, you may also choose to have a qualified representative do so in your stead. This requires that you complete the appropriate documentation prior to any discussion of tax matters.
Failure to address your liability will result in the eventual issuance of a tax warrant. At this point, the State may pursue enforced collection actions.
The warrant may be sent to your respective sheriff’s office, enabling the sheriff to collect the full amount of your liability, including any penalties and any costs associated with the collection process. The sheriff may seek to resolve your liability by means of levies, wage garnishments, or property seizures.