Tax collection process

What is a delinquent account?

An account becomes delinquent when the due date for the tax liability has passed and the amount due is unpaid.

What happens if my account becomes delinquent?

Penalties and interest accrue until the entire balance is paid in full. If attempts to contact you fail, your account will be assigned to a Revenue Agent for collection. The Revenue Agent will contact you in person, by telephone or by letter to resolve the delinquency.

What happens if I do not make satisfactory payment arrangements during the collection process?

• The Department may issue a tax warrant covering all unpaid tax, penalty and interest.
• If a tax warrant is not paid ten days after it is issued, it will be filed with the clerk of a Superior Court. This establishes a lien against your real and personal property and enables the Department to seize your property (bank accounts, wages, personal property) to pay the debt.
• If a filed tax warrant is not paid after 30 days, a hearing to revoke your business license tax registration endorsement may be held.

How can I avoid becoming delinquent?

• Know your tax responsibilities and plan for them.
• Pay careful attention to the due date on your tax return, or any other notices from the Department of Revenue.
• Open and read Department of Revenue correspondence; it may contain reminders about due dates or important changes in laws or tax rates.
• Set up a separate bank account and regularly deposit collected sales tax or other taxes you may owe. Withdraw the funds only when you pay the taxes with your next tax return.