Garnishment and Seizures

One type of enforced collection is the seizure of property. A warrant to seize property, including wages, bank accounts, and other assets, may be filed by the Department of Revenue after a lien is in place. Wages and bank accounts may be subject to garnishment until such time as liability is resolved.

Liens

If you fail to address your liability or default on a payment agreement, the State may file a lien against your property. Liens are a public claim against whatever they are attached to and serve to protect, the State’s interests until your liability is resolved.

Notice of Assessment

If you fail to address a tax deficiency for long enough that it becomes finally determined, a Notice of Assessment will be issued. You will be given a brief period in which to appeal it, should you disagree with it.

Offset

The State has the authority to intercept any state or federal refunds due to you, and apply them to your tax liability. You will be notified of the State’s intent to offset before it occurs.

Payment Options

If you cannot pay your tax liability in full, you may be able to request an installment agreement with the State. There are a number of criteria that you must meet in order to qualify, including having your tax returns in order, and the State will require you to comply closely with whatever conditions they give you. Should your request be accepted, penalties and interest may still be applied to whatever portion of your liability remains unpaid.

Penalties and Interest

Failure to pay or file your taxes by their due dates can result in additions to your total liability in the form of penalties and interest. Each varies in amount by circumstance and the type of tax left unpaid.

Personal Liability

The State may hold an individual responsible for the tax liability of a business. The individual is determined based upon their status, as a corporate officer or another such bearer of responsibility within the business.

Power of Attorney

If you so choose, you may authorize a qualified individual to represent you in tax matters before the DOR or associated proceedings. To do so, you must first complete the appropriate documentation.

Revocation or Suspension of Permits

Failure to adhere to the tax code may result in the revocation or suspension of a range of permits or licenses. Prior to such actions by the DOR, you will receive a Notice of Intent, providing you a window in which to request a hearing before the revocation or suspension takes effect.