Collection Agencies

The State may employ a collection agency to resolve cases of liability. Typically this is done after several notices have been issued and ignored, or a significant amount of time has passed. Fees associated with the use of the collection agency may be added to a delinquent taxpayer’s total liability.

Liens

The State may choose to resolve tax liabilities through the filing of a tax lien against property or the rights thereto. A lien enables the State to satisfy the liability in a number of ways, including the seizure, sale, or hindrance of the sale of property. This includes wages and bank accounts and may be enforced with wage garnishments.

Notices and Appeals

Upon reception of a Notice of Deficiency or a Notice and Demand for Payment, a petition for redetermination may be made in a timely manner if the taxpayer disagrees with the content of the Notice.

Payment Plans

If you cannot pay your tax in full, you may pursue one of the following options:

• Pay in equal payments over 90 days. No forms are necessary.
• Pay over more than 90 days. Requires forms, electronic payments, and approval from the Department of Revenue.
• Pay by credit card. A convenience fee will be added.

Penalties

Failure to pay or otherwise address your taxes on time may result in additions to your total liability in the form of penalties. Penalties vary according to circumstance and the type of tax they are associated with.

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.

If you are purchasing a business, it is important to make sure it is clear of liabilities, lest you be held responsible for them.

Power of Attorney

An accountant, attorney, or non-lawyer in a limited capacity, may represent you before the State in tax matters. Such representation requires authorization through the completion of appropriate documentation.

Revocation or Suspension of Sales Tax Permit

Failure to adhere to the state’s tax code can result in the revocation or suspension of a sales tax permit. Such failure will be met with a notice to appear at a hearing. The only way to prevent permit loss at this juncture is to prove reasonable cause for the failure of adherence. Upon the resolution of any and all liabilities, the issuance of a new permit may be considered by the State, though there may be a security measure set to ensure compliance.