Louisiana Bank Levy Checklist
State enforcement by the Louisiana Department of Revenue represents formal collection action taken when a tax debt remains unpaid and previous notices have not resulted in payment or resolution. This enforcement stage occurs after the state has issued initial notices and allowed time for response. Understanding what state enforcement means helps taxpayers recognize where their account stands and what actions typically follow.
Enforcement actions can include Louisiana bank levy actions, wage garnishments, property liens, or other collection methods the state uses to collect unpaid tax debt. This process matters because enforcement actions directly affect your finances and your ability to access funds. Ignoring an enforcement action typically leads to escalated collection efforts and additional penalties.
Knowing what to expect helps reduce confusion and allows for informed next steps with the state.
What This Issue Means
State enforcement is a formal collection action initiated when a tax debt remains unpaid for an extended period, and the taxpayer has not responded to earlier notices or payment demands. At this stage, the Louisiana Department of Revenue moves beyond sending notices and begins using legal collection tools to recover the debt. Enforcement means the state is actively collecting through methods such as levies on bank accounts, wage garnishments, property liens, or seizure of state refunds.
Why the State Issued This or Requires This
The Louisiana Department of Revenue initiates enforcement when a taxpayer has an outstanding tax debt that remains unpaid and has not responded to prior notices.
According to state administrative procedures, enforcement typically begins after initial assessment notices, demand letters, and follow-up notices have been issued. The state uses enforcement to recover unpaid tax revenue and ensure compliance with tax obligations. Once a debt is considered collectible and time for voluntary payment has passed, the state may pursue enforcement remedies to satisfy the outstanding balance.
What Happens If This Is Ignored
If a state enforcement action is ignored, the state typically escalates collection efforts.
This may include expanding the scope of levies, adding additional collection actions, or pursuing further legal remedies. Additional penalties and interest continue to accumulate on the unpaid tax debt. Ignoring enforcement can also result in continued interruption to bank accounts, ongoing wage garnishments, or placement of a lien against property. The longer enforcement actions go unaddressed, the more difficult resolution typically becomes.
What This Does NOT Mean
State enforcement does not mean the state has seized all your assets or permanently closed your accounts. It does not automatically imply criminal action has been initiated.
Enforcement also does not mean you have no options for addressing the debt. The state has not automatically obtained a judgment against you in all cases, though legal proceedings may be underway. You retain the ability to contact the state, request information about your debt, or explore payment or relief options even after enforcement has begun.
Checklist: What to Do After Receiving Notice of State
Enforcement or Identifying This Issue
Follow these steps in order. Each step helps you gather information and take appropriate action.
1. Locate all enforcement notices or levy documents received from the Louisiana
Department of Revenue, any financial institution, or your employer. Set aside these documents in one place. Do not discard any notices.
2. Review each notice carefully to identify the tax year, the tax type (income, sales, use, or other), the amount owed, and any reference numbers or case numbers listed. Write down this information on a separate sheet or document.
3. Determine what enforcement action has been taken. Check whether the action is a Louisiana bank levy, wage garnishment, property lien, or another method.
The notice should state which action is in effect.
4. Confirm your current contact information is accurate and accessible. Ensure the state can reach you if needed. Update your address with the Louisiana
Department of Revenue if it has changed.
5. Gather documentation of your tax filing history for the year(s) in question.
Collect copies of the returns you filed, payment receipts, and any prior correspondence with the state.
6. Contact the Louisiana Department of Revenue to verify the enforcement action and obtain a current account statement showing the exact amount owed, including penalties and interest—request written confirmation of the amount due and any applicable deadlines.
7. Ask the state whether payment arrangements, installment plans, or other resolution options are available—request information in writing. Document the name and contact information of the state representative you speak with.
8. If you dispute the debt or believe an error exists, request the formal process for disputing the enforcement action. Request information on administrative appeal or protest procedures in writing.
9. If the enforcement action affects your wages or bank account, document the impact and gather statements or notices from your employer or financial institution showing the levy or garnishment details.
10. Keep detailed records of all communication with the Louisiana Department of
Revenue, including dates, times, names of representatives, and summaries of what was discussed or requested.
11. If you choose to contact the state, send written correspondence using certified mail with a return receipt when possible. This creates a record of your communication and when the state received it.
12. Do not ignore follow-up correspondence from the state, your employer, or your financial institution. Each notice may contain new information or deadlines.
What Happens After This Is Completed
After gathering information and contacting the state, the Louisiana Department of
Revenue typically reviews your account status and any requests you have submitted. If you request payment arrangements or other options, the state will evaluate your request and communicate its decision. The state may continue enforcement actions while considering your request, or it may temporarily suspend specific actions pending resolution. Resolution timelines vary depending on the complexity of your situation and
the state's current workload. You should expect follow-up communication from the state, either approving, denying, or requesting additional information regarding your request.
Common Mistakes to Avoid
- Missing communication deadlines can limit your options. If the enforcement
notice includes a deadline for responding or appealing, missing that deadline may limit your available remedies. Mark deadlines on a calendar and respond within the timeframe specified.
- Not responding to state correspondence results in continued or expanded
enforcement. Ignoring follow-up notices or requests for information can escalate collection actions. Respond to all state correspondence promptly, even if only to acknowledge receipt and request more time.
- Failing to keep records makes resolving the issue more difficult. Without
documentation of your communication with the state, payment history, or the enforcement action itself, proving your position becomes challenging. Save all notices, correspondence, and records.
- Sending payments without specifying which tax debt or year the fee applies to
creates confusion. Always include your tax identification number, the tax year, and the type of tax when making a payment. This ensures the state applies the payment correctly.
- Assuming the enforcement action will stop without taking action is incorrect.
Enforcement typically continues until the debt is resolved or you take steps to address it. Inaction usually results in ongoing collection efforts.
- Not requesting written confirmation of the debt or enforcement action leaves you
without documentation. Verbal conversations are challenging to prove—request
written statements showing what is owed and why the enforcement action was taken.
- Attempting to resolve the issue without understanding the current balance
creates problems. Contact the state to obtain a current account statement before trying to settle or pay. Amounts change as penalties and interest accrue.
Frequently Asked Questions
How long does state enforcement typically last?
The duration varies depending on your specific situation and the actions you take to resolve it. The state may continue enforcement until the debt is paid in full or resolved through another official process. Louisiana has a 10-year collection period for tax debts, though this period can be suspended or interrupted under certain circumstances.
Can the state enforce a wrong tax debt?
Yes, the state can initiate enforcement while a dispute is being resolved. However, you retain the right to dispute the debt through official channels. Contact the state to inquire about dispute or protest procedures.
Does state enforcement affect my credit?
Tax liens no longer appear on credit reports. Since April 2018, the three major credit bureaus have stopped including tax liens on consumer credit reports. However, tax liens remain public records, and potential lenders could discover them through public record searches, which may indirectly affect lending decisions.
Can I request a payment plan after enforcement has begun?
Yes. Even after enforcement begins, the state may offer installment plans or other payment arrangements. Louisiana charges a $105 fee for installment agreements, which is waived if your Louisiana adjusted gross income is $25,000 or less. Individual income installment agreements must be for at least 6 months.
What is a Louisiana bank levy, and how does it work?
A Louisiana bank levy is a legal action that allows the state to seize funds from your bank account to satisfy the tax debt. The state provides notice to your financial institution, which freezes the specified amount. Banks must hold funds subject to levy for 21 days before transferring them to the state. This 21-day holding period gives you time to contact the state and attempt to resolve the situation.
What happens if I cannot pay the full amount owed?
Contact the Louisiana Department of Revenue to discuss options. Installment agreements, payment plans, or other arrangements may be available. The state evaluates requests based on your individual circumstances.
How do I know if a lien has been placed against my property?
A lien is typically documented through the office of the parish clerk or recorder where your property is located. The state should notify you of a lien in writing. Contact the
Louisiana Department of Revenue to confirm whether a lien exists.
Can the state enforce a debt from a prior year?
Yes. The state has the legal authority to enforce tax debts from prior years. Louisiana has a 10-year collection period, though this period can be suspended or interrupted under certain circumstances detailed in Louisiana Revised Statutes 47:1580.
What should I do if I receive a levied notice from my employer?
Provide the notice to your employer's payroll or human resources department if you have not already done so. The notice typically requires your employer to withhold a specified amount from your paycheck and send it to the state. Contact the Louisiana
Department of Revenue to discuss the wage garnishment and any available options.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement and are unsure how to respond, our team can help you understand your options and next steps.
We help with
- 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
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