Failure to file and remit taxes in a timely manner will result in the department initiating its collection activity procedures.
The liability will accrue penalty and interest and will cycle through the department's collection process. A bill will be sent to you, and a collection case will be forwarded to the Call Center. The Call Center will try to contact you by telephone to resolve the liability. If the liability is not paid or resolved, the Call Center will forward the case to a revenue enforcement officer in the Revenue Tax Enforcement Division. Please note that the liability continues to accrue penalties and interest during the collection phase.
The revenue officer will issue a final demand for payment which gives 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 can adversely affect you or your business' credit rating. Failure to pay the liability or failure to make arrangements to satisfy the liability will result in levy actions. Levy actions are the seizure and sale of assets to satisfy the tax liability. It is extremely important to contact the department and the revenue officer immediately after receiving a notice or call to avoid these collection actions. Note that you should contact the department at the phone number listed on the notice.