Wisconsin Taxing Information
Bank Levies
The state Department of Revenue may seek to resolve tax liability through a bank levy. A bank levy is a single action in which funds are taken directly from a delinquent taxpayer’s accounts, up to the amount owed. The bank is legally obligated to comply, and the action may be repeated if the liability is not fully satisfied.
Delinquent Taxpayers List
Taxpayers who maintain tax liabilities greater than $5000 over 90 days after their right to appeal has expired appear in an online list managed by the DOR.
Enforcement Actions
If a tax liability goes unaddressed for long enough, the state may pursue enforced collection actions in order to resolve it. These can include the issuing of liens and levies, offsetting refunds, garnishing funds, and more. Costs associated with the collection process may be added to the liability concerned.
Installment Agreements
Even if you are unable to pay the full amount of your taxes, it is recommended that you nonetheless file on time and pay as much as possible. This will help to avoid costs associated with late filing. Upon receiving the tax bill for the amount left unpaid, you may request an installment agreement with the state. If the request is accepted, you will need to provide financial information and comply with any terms and conditions that you come to with the state. Failure to comply with either those or the tax code for the duration of the agreement can result in an enforced collection process.
Priority One: Stopping Aggressive Enforced Collections
Interest
Interest is charged at 18% per year on the balance of tax due.
Occupational Licenses
A delinquent taxpayer may have their occupational licenses suspended, revoked, or otherwise inhibited by the state until such time as their liability has been addressed.
Petition for Compromise
If it is evident that you may never be able to pay your tax liability in full, you may be able to reach a compromise with the state. In order to qualify, the state will need to comprehensively review your financial situation, to make sure that it is in their best interests as well as yours. If it is, then you may be able to settle your liability for less than the full amount.
Power of Attorney
If you so choose, you may authorize another party to represent you in tax matters before the Department of Taxes by completing and submitting the appropriate documentation.
Successor Liability
Any liabilities maintained by a business may become the responsibility of a new owner if the business is purchased without checking for them. A clearance certificate may be requested prior to purchase to this end.
Tax Warrant
All delinquent liabilities may be subject to tax warrants. A tax warrant serves as a public notice of liability and thus can affect credit and property-related transactions.
Wage Garnishment
The state may choose to garnish your wages as a means of paying off your liability. Your employer is legally obligated to comply with a garnishment, and it will remain in effect until the full amount owed has been met. If your wages are currently or you believe will become subject to garnishment, it is recommended that you seek professional advice.