Failure to file and pay taxes in a timely manner will result in the Department of Revenue initiating its collection activity procedures. The general process the Department follows for tax delinquency is outlined below:
- A bill will be sent regarding the tax liability.
- If the liability is not paid or resolved within 30 days, the matter will be forwarded to a Revenue enforcement officer in the Revenue Tax Enforcement Division. The liability will continue to accrue penalty and interest during the collection process.
- The Revenue officer will issue a final demand for payment. This gives the taxpayer 10 days to pay the liability.
- The officer may also file a tax lien to protect the state's interest. These lien filings are noted on credit reports and other financial industry reports, and they can adversely affect personal or business credit ratings.
- Failure to pay the liablity or failure to make arrangements to satisfy the liability will result in levy actions, such as the seizure and sale of assets.
It is extremely important to contact the Department and the Revenue officer immediately after receiving a notice to avoid collection actions. Please use the phone number listed on the notice.