Rhode Island Taxing Information
Appeals & Hearings
You may request a hearing, promptly and in writing, if you disagree with a notice of assessment. The first review will be with the Tax Division and can continue in increasingly formal settings if you still disagree with previous results. Interest may continue to accrue on your liability throughout the hearing process.
If you cannot pay your tax liability in full, the state may allow an Installment Agreement. If your proposal is approved, you will pay off your liability in set amounts over a set number of months. The state is obligated to protect its interests and may file a lien for security. Additionally, you will need to comply with any terms and conditions given by the state, lest you incur penalties or an enforced collection process.
Failure to address a notice from the state demanding payment may result in the issuance of a levy upon your property or rights thereto. A levy enables the seizure and sale of real or personal property as a means of resolving liability. Wages and bank accounts may also be subject to levies. Notice will be given prior to seizures and sales.
Offer in Compromise
If you are unable to pay the full amount of your liability due to extreme hardship, the state may allow the settlement of your liability for less than the full amount. Consideration of an Offer in Compromise will involve providing extensive financial information. You will be required to comply with any terms and conditions given by the state. Failure to do so will cause the compromise agreement to default, making you subject to enforced collections for the total amount of the original liability.
Priority One: Stopping Aggressive Enforced Collections
Failure to file or pay taxes on time can result in additions to your total liability in the form of penalties. Penalties vary by the circumstances and type of tax left unaddressed.
Any individual bearing the responsibility of handling tax matters may be held personally liable for a failure in such matters.
Power of Attorney
A qualified representative may be authorized to represent you before the Division of Taxation via the completion and submission of the appropriate documentation.
Any amount or component of tax liability imposed on a taxpayer serves as a lien against that taxpayer’s property until it is resolved. A tax lien is a public notice of debt, and thus can affect credit ratings and the ability to engage in property-related transactions.