Illinois Final Notice / Intent to Enforce: Complete
Checklist and Explanation
Understanding the Notice Before Collection Action
The Illinois Department of Revenue issues a “Notice Before Collection Action” when a taxpayer has an outstanding tax debt and earlier collection notices have not prompted payment or response. This formal written notification states that the state intends to collect an unpaid tax debt through enforcement action.
The notice contains specific information about the amount owed, the tax type, and the tax year involved. Illinois law requires the Department of Revenue to provide notice before taking enforcement action, such as wage garnishment or bank levy. The notice serves as a formal warning that enforcement action is imminent and provides the taxpayer with an opportunity to respond, arrange payment, or request relief before enforcement occurs.
Why You Received This Notice
The Illinois Department of Revenue issues this notice when a taxpayer has an outstanding tax debt and earlier collection notices have not resulted in payment or resolution. Common triggers include unpaid income tax, unpaid sales tax, unpaid use tax, or other state tax obligations.
The state must give taxpayers notice of its intent to enforce collection rights before taking action. By law, this notification allows you to respond, arrange payment, or request relief before enforcement.
Consequences of Ignoring This Notice
If you ignore this notice and make no payment or response, the Illinois Department of Revenue will proceed with collection enforcement. The state may implement wage garnishment, bank account levies, or property liens. Additional penalties and interest continue to accumulate on the unpaid balance.
The state may notify you and the appropriate licensing authority to begin proceedings to revoke or suspend professional licenses or to stop the issuance or renewal of certain business or professional licenses. The longer the debt remains unresolved, the more difficult and costly the situation becomes.
What This Notice Does Not Mean
This notice does not mean you have been sued or that a court judgment has been entered against you. The notice does not mean that enforcement has already begun. The state is notifying you that it intends to enforce if the debt is not addressed.
This notice does not automatically result in immediate wage garnishment or bank seizure, though the state is now authorized to pursue these actions. The notice is a formal communication designed to prompt action before enforcement escalates further.
Steps to Take After Receiving This Notice
Step 1: Review the Notice Thoroughly
Read the entire notice from start to finish. Identify the tax type, tax year, amount owed, and any deadline for response mentioned in the notice.
Step 2: Verify the Amount Is Correct
Examine your own tax records to determine whether you believe the amount stated is accurate.
Look for any payments you made that may not have been applied or any discrepancies in the calculation.
Step 3: Contact the Illinois Department of Revenue
Call the Department of Revenue phone line listed on the notice to ask about the debt and your options. Have your notice and tax identification information available. Note the date, time, and name of the person you spoke with.
Step 4: Explore Payment Plan Options
Ask the Department of Revenue whether you can set up an installment agreement to pay the debt over time. Standard payment plans default to twelve months, with a possible extension to text extensions or more in 24 cases.
For amounts over fifteen thousand dollars, you must complete additional financial disclosure forms. Pre-approved payment plans are available through MyTax Illinois for qualifying taxpayers. Request information about payment plan terms, including the monthly amount and the total timeframe.
Step 5: Ask About Penalty Relief
Inquire whether you are eligible for penalty abatement or relief based on reasonable cause. The
Department of Revenue can explain the criteria for consideration.
Step 6: Determine Your Dispute Rights
If you disagree with the debt, ask whether you have the right to dispute or appeal the assessment. Request information on the process and any deadlines.
Step 7: Gather Supporting Documentation
Collect copies of any tax returns you filed, payment receipts, bank statements, or other records related to the tax year in question. Organize these documents in order.
Step 8: Submit a Written Response If Required
If the notice includes a deadline for response or a form to complete, fill out the form or submit a written response before the deadline. Send it by certified mail with a return receipt requested.
Step 9: Consider Professional Assistance
If the debt is substantial, if you dispute the amount, or if you need help negotiating a payment arrangement, consider consulting a tax professional, enrolled agent, or attorney licensed in
Illinois who specializes in tax matters.
Step 10: Monitor All Follow-Up Communications
Suppose you receive supplemental notices or communications from the Department of
Revenue, open and read them promptly. Do not discard mail from the state.
Step 11: Maintain Complete Records
Keep organized copies of the original notice, any correspondence you send, responses from the state, and records of phone calls or conversations.
- Missing the deadline for response can result in the state proceeding with enforcement
- Not calling the Department of Revenue proactively often delays resolution. If you send a
- Do not ignore the notice because it appears to be a scam. Verify the notice’s legitimacy
- If you cannot pay the full amount immediately, contact the state to discuss payment
- Before sending a partial payment, confirm with the Department of Revenue how the
- 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 12: Watch Your Bank Accounts and Paychecks
After responding, monitor your bank accounts and paychecks to confirm whether enforcement action is taken. If a wage garnishment or levy occurs, contact the Department of Revenue to confirm the amount and status.
Understanding State Enforcement Authority
Illinois law permits the state to garnish wages for unpaid state taxes without first obtaining a court judgment. This is an administrative enforcement action, not a court action. The
Department of Revenue must provide at least ten days’ notice before sending a wage levy to your employer. Your employer must deduct up to fifteen percent of the gross amount to pay your past due tax. A wage levy can remain effective until your tax liability is paid.
The Department of Revenue may levy against your bank accounts, requiring the bank to hold all monies in your account for 20 days, up to the total past-due tax, penalty, and interest. After twenty days, the bank forwards these monies to the state. The Department of Revenue provides at least ten days’ notice before sending a levy.
Tax liens are public records but do not appear on credit reports maintained by the three major credit bureaus. Liens do not directly affect credit scores. However, liens remain public records that lenders may discover through other means, which could affect lending decisions. A lien filed on your real estate or personal property may prevent you from selling or transferring your property until you pay your past-due amount. The lien is enforceable for twenty years.
Common Errors to Avoid without further notice. payment, include your tax identification number, the tax type, and the tax year on the invoice or in a separate letter so the payment is applied correctly. by calling the Department of Revenue’s main line and asking about it. Document all phone calls, letters, and emails related to the notice. plans, hardship considerations, or other options. payment should be applied and whether a partial delay enforcement action will be taken.
Frequently Asked Questions
What is the difference between a Notice of Assessment and a Notice Before
Collection Action?
A Notice of Assessment is an earlier notice that informs you of a tax debt. Following non-payment, a Notice Before Collection Action indicates the impending enforcement action.
Does a lien affect my credit score?
Tax liens do not appear on credit reports as of April 2018 and do not directly affect credit scores.
However, liens remain public records that lenders may discover, which could affect lending decisions.
Can I get a payment plan even after receiving this notice?
Yes, contact the Department of Revenue to discuss payment plan options. A payment plan may stop or delay enforcement action while you pay the debt over time.
How long do I have to respond?
The notice itself should specify any deadline for response. If no deadline is stated on the notice, contact the Department of Revenue to determine the applicable timeframe.
What happens with bank levies?
Bank levies involve a mandatory twenty-day hold period. The bank holds the funds for twenty days after receiving the levy, then forwards the money to the Illinois Department of Revenue.
You have a 20-day window to resolve the issue before funds are transferred.
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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