Arkansas Final Notice / Intent to Enforce Checklist
Introduction
A Final Notice or Intent to Enforce from the Arkansas Department of Finance and Administration marks a critical stage in the tax collection process. This notice means the state has exhausted earlier attempts to collect unpaid taxes and is preparing to take legal action to recover the debt.
It typically appears after the Arkansas DFA has sent up to three notices regarding the unpaid tax liability.
Receiving this notice does not mean the state has already seized assets or filed a lien—it means the state is formally notifying you of its intent to pursue enforcement actions if the debt remains unresolved. Understanding what this notice represents and what steps to take next can help you understand your options and avoid further complications.
What This Issue Means
A Final Notice or Intent to Enforce is a formal notification that the Arkansas DFA believes you owe unpaid state taxes and intends to pursue collection through legal enforcement methods.
This notice indicates that earlier attempts to collect—such as initial assessments or demand notices—have not resulted in payment or resolution.
The notice serves as a formal declaration that the state will proceed with enforcement unless the debt is addressed. It does not mean enforcement has already occurred; it means the state is formally announcing its intent to do so.
Why the State Issued This or Requires This
The Arkansas DFA issues a Final Notice or Intent to Enforce when a taxpayer has an unpaid tax debt and previous collection efforts have not resolved it. Common triggers include failing to pay after receiving earlier notices, failing to respond to payment demands, or missing deadlines for prior correspondence.
According to official Arkansas DFA collection procedures, the tax section sends up to three notices notifying you of the debt currently due. If the debt is not paid within 10 days of the Final
Assessment Letter, your account may be transferred to the internal collection section for
additional collection activities. State law requires the department to provide formal notice before pursuing specific enforcement actions, such as liens or garnishment.
What Happens If This Is Ignored
If a Final Notice or Intent to Enforce is ignored, the Arkansas DFA typically proceeds with the enforcement actions listed in the notice. These actions may include placing a Certificate of
Indebtedness on property, intercepting tax refunds, garnishing wages, or pursuing collection through other legal means.
Unpaid debt that remains outstanding allows the state to apply additional enforcement tools over time. Ignoring the notice does not stop the collection process; it generally allows the state to proceed without further delay. Under the Arkansas Code, the Arkansas DFA has ten years from the date of assessment to collect the tax through levy or court proceedings.
What This Does NOT Mean
Receiving a Final Notice or Intent to Enforce does not automatically mean a Certificate of
Indebtedness has already been filed against your property. It does not mean wage garnishment or bank account seizure has begun.
This notice serves as a formal warning of the state's intent, not a confirmation that enforcement has been completed. You have not lost the ability to communicate with the state.
Depending on your circumstances and the state's policies, the debt itself may still be subject to discussion, negotiation, or formal payment arrangements. However, the window for informal resolution is narrowing, and time is an essential factor at this stage.
Checklist: What to Do After Receiving This or Identifying
This Issue
Step 1: Verify the Notice Is Authentic
Check that the notice came from the official Arkansas DFA. Look for contact information that matches the state’s official website or published materials. Do not respond to notices that use suspicious contact methods or demand payment via wire transfer or gift cards.
- Identify the tax year or period in question.
- Note the total amount owed.
- Locate any deadline or date by which you must take action.
- Record the department contact name, phone number, and address if provided.
Step 2: Review the Notice for Key Details
Step 3: Gather Documentation Related to the Debt
Collect any previous notices or letters from the Arkansas DFA. Locate copies of tax returns you filed for the relevant year. Gather payment records, receipts, or bank statements showing any payments made. Keep records of any correspondence or phone calls with the state.
Step 4: Review the Notice for Enforcement Action Details
Identify which specific enforcement actions the state intends to pursue. Note whether a
Certificate of Indebtedness is mentioned, wage garnishment, refund intercept, or other methods.
Look for any statement about the timeline for these actions. Determine whether the notice offers options to avoid immediate enforcement.
Step 5: Contact the Arkansas Department of Finance and Administration
Call the number provided on the notice to speak with a representative. Ask for clarification on the debt, the notice, and what happens next. Inquire about possible payment arrangements or other resolution options. Document the date, time, and name of the person you speak with. Ask whether a written confirmation of your conversation will be sent.
Step 6: Determine If You Dispute the Debt
Review the underlying tax assessment or demand notice if you have it. Assess whether you believe the amount owed is correct. Check if you filed a return for the year in question or if this is an unfiled return assessment. If you think the debt is incorrect, ask the department about the process for disputing it through the Tax Appeals Commission.
Step 7: Explore Formal Payment Options
The Individual Income Tax Section cannot establish payment plans. After your account transfers to the Collections Section, that office can set up payment arrangements. Contact the Collections
Section at 501-682-5000 or toll-free at 800-292-9829. "Understand that the collection section will file a lien any time a taxpayer requests a payment plan. Request written information about any plan offered
Step 8: If You Cannot Pay in Full, Request Information About Available
Programs
Ask whether the state offers an offer in compromise for taxpayers facing financial hardship. The
Arkansas DFA provides this program to allow financially distressed taxpayers who qualify the opportunity to resolve overwhelming tax liabilities by paying a reasonable amount in compromise. Understand that acceptance into any hardship program is not guaranteed.
Request written information about eligibility and the application process.
Step 9: Respond in Writing If Required
Mark any response deadline stated in the notice on your calendar. Send written documentation if you are making a payment or proposing an arrangement. Use certified mail with a return receipt when sending payment or formal correspondence. Keep copies of everything you send to the state.
Step 10: Document All Communications
Record the date, time, and content of every phone call. Keep copies of every letter, email, or notice from the state. Note any promises made or agreements discussed. File these documents in a safe, organized location.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 11: Monitor for Enforcement Actions
Watch for additional notices announcing specific enforcement steps. Be aware of potential tax refund intercepts on future returns. Monitor your payroll if wage garnishment was mentioned in the notice. Check your county circuit clerk records for any Certificate of Indebtedness filed by the state.
What Happens After This Is Completed
Once you have reviewed the notice and taken initial steps, the state will evaluate your response and any information you provide. If you contact the department to propose a payment arrangement, the state will typically review your offer and issue a decision.
Processing timelines vary depending on the complexity of your situation and the state’s current workload. In many cases, the state will provide written confirmation of any agreement reached.
If no response is received or if proposed arrangements are not accepted, the state will typically proceed with the enforcement actions outlined in the Final Notice.
Common Mistakes to Avoid
Ignoring the notice entirely is the most common mistake. This approach does not eliminate the debt and typically results in enforcement action proceeding without delay. Missing any deadline stated in the notice can result in the state moving forward with enforcement without further opportunity for you to be heard.
Sending payment to an incorrect address or using an outdated address can delay processing and lead the state to believe you have not responded. Failing to keep copies of all correspondence is problematic because documentation is critical if you later need to prove you contacted the state, made payments, or established an agreement.
Not responding to follow-up notices from the Collections Section can accelerate enforcement.
Assuming enforcement has not started can leave you unprepared because even after receiving this notice, enforcement actions may be underway.
Providing incomplete or incorrect information when contacting the state can delay resolution.
Not asking about available options may mean you miss out on programs like an offer in compromise that could help resolve your situation.
Frequently Asked Questions
Does receiving this notice mean the state has already filed a Certificate of
Indebtedness?
Not necessarily. The notice is an intent to enforce, but it does not confirm that a Certificate of
Indebtedness has been filed. However, a lien may be filed in the future or may already be in process. Contact the state to determine the current status.
Is there a deadline for responding to this notice?
The notice should state any deadline. If it does, it is critical to respond before that date. If no deadline is clearly stated, contact the state to ask.
Can I set up a payment plan after receiving this notice?
The Individual Income Tax Section cannot establish payment plans. After your account is transferred to the Collections Section, you can contact them at 501-682-5000 to discuss payment arrangements. Payment arrangements may involve the filing of a Certificate of
Indebtedness as part of the agreement.
What if I believe the debt is wrong?
Contact the state immediately and explain why you believe the amount is incorrect. Provide documentation. Ask about the formal dispute process through the Tax Appeals Commission.
Raising this concern does not automatically stop enforcement, but it may affect how the state proceeds.
Will my wages be garnished?
Wage garnishment is one possible enforcement action. After the Arkansas DFA files a
Certificate of Indebtedness, the state has the authority to issue garnishment without obtaining a separate court judgment because the Certificate has the same force and effect as a judgment rendered by a circuit court.
What if I cannot afford to pay this debt?
Contact the state and explain your financial situation. Ask about the offer in compromise program for financially distressed taxpayers. There are no guarantees, but options may be available.
Should I hire a tax professional or an attorney?
This is a personal decision. Some taxpayers work directly with the state; others prefer professional representation. There is no requirement to hire help, but it may be helpful if your situation is complex.
What if I ignore this notice and the state files a Certificate of Indebtedness?
A Certificate of Indebtedness is a legal claim against your property. Once filed, it affects your ability to sell or refinance property and may damage your credit. Ignoring the notice increases the likelihood that a Certificate will be filed.
How long does the state have to collect this debt?
Arkansas law provides that the tax may be collected by levy or by proceeding in court if the levy is made or the proceeding is begun within ten years after the assessment of the tax. A bankruptcy filing may toll this period.
Closing Section
Receiving a Final Notice or Intent to Enforce from the Arkansas Department of Finance and
Administration is serious, but it is not the end of the road. This notice is a formal warning that allows you to take action before enforcement escalates further.
Verifying the notice is authentic, understanding what you owe, contacting the state to discuss your options, and responding promptly are the most important steps you can take. Whether you pay in full, negotiate a payment arrangement through the Collections Section, or address a dispute through the Tax Appeals Commission, taking action now is far better than waiting for enforcement to begin.
You have more options at this stage than you will have later, and the state expects taxpayers to respond to this notice. Stay organized, keep records of everything, and communicate directly with the Arkansas Department of Finance and Administration. Understanding what this notice means and acting on it promptly can help you avoid more serious enforcement consequences.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.
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