Maine State Tax Wage Garnishment Checklist
Understanding and Responding to Collection Actions
Introduction
State tax wage garnishment is a collection action that the Maine Department of Revenue
Services takes when a taxpayer owes unpaid state income tax or other state tax obligations.
This enforcement tool allows the state to collect money directly from your paycheck through a continuous levy that remains in effect until the debt is satisfied or the garnishment is released.
Unlike consumer debt garnishments, state tax levies are not subject to the federal 25% limit under the Consumer Credit Protection Act, meaning the state can take a larger portion of your wages. Understanding how this process works and what steps to take can help you respond appropriately and explore options to resolve the debt or reduce the garnishment amount.
What This Issue Means
A Maine wage garnishment order is an administrative levy that instructs your employer to withhold a portion of your wages and send that money directly to Maine Revenue Services to satisfy a state tax debt. The levy remains in effect from the date it is issued, meaning it automatically applies to all future paychecks and continues even if you change employers, unless the state releases it.
Maine law grants the state assessor administrative authority to issue levies without obtaining a court judgment, and exercising this levy power makes the assessor a judgment creditor with the legal right to collect the debt through wage withholding.
Why the State Issued This Action
Maine issues wage garnishment orders when a taxpayer has a delinquent state tax liability and previous collection attempts have not resolved the debt. The state may issue a levy after sending notices and providing at least 10 days to respond, though in a jeopardy situation, the state may proceed immediately.
Common triggers include unpaid state income tax balances and other obligations collected by
Maine Revenue Services under Title 36 of the Maine statutes. Wage garnishment is a later-stage enforcement action typically used after standard notice and demand procedures have been exhausted without payment or resolution.
What Happens If This Is Ignored
If you receive a wage garnishment notice and do not respond or take action, the garnishment will proceed as ordered, and your employer will begin withholding the specified amount from each paycheck. The levy continues automatically until the debt is satisfied, which could take months or years, depending on the balance owed and your income level.
The state may also pursue additional collection actions simultaneously, including bank account levies, liens on property, or referral to private collection agencies. Continuing to ignore notices or failing to address the underlying tax debt can result in escalating enforcement efforts and additional penalties and interest accruing on the unpaid balance.
Step-by-Step Checklist: What to Do After Receiving a
Wage Garnishment Notice
Step 1: Review the Notice Carefully and Identify Key Details
Read the entire notice to understand the tax year or period for the debt, the total amount owed, including penalties and interest, the garnishment calculation method, and the contact information for Maine Revenue Services.
Step 2: Verify the Debt Accuracy and Your Information
Confirm that the Social Security number or tax identification number on the notice matches your information and verify whether you filed returns for the tax years in question and whether the amounts stated appear correct based on your records.
Step 3: Contact Maine Revenue Services Within the Stated Timeframe
Call the phone number provided on the garnishment notice as soon as possible. Have the notice available when you call and ask to speak with a revenue officer or collections representative who can discuss your account and available options.
Step 4: Request Account Information and Documentation
Ask the revenue officer for the exact remaining balance, including principal tax, penalties, and interest, request written documentation showing how the debt was calculated, and inquire about what notices were previously sent and whether you have any remaining appeal or dispute rights.
Step 5: Explore Payment and Resolution Options
Inquire whether you can pay the debt in full immediately to stop the garnishment, ask about installment agreement or payment plan options that may reduce or release the levy, and request information about Maine’s Offer in Compromise program under Title 36 Section 143 if you cannot pay the full amount.
Step 6: Understand the Garnishment Calculation
Confirm that the exempt amount is being calculated correctly under Maine law, which protects
75% of your disposable earnings or 30 times the federal minimum wage per pay period, whichever is less, meaning the state can withhold more than the 25% limit that applies to consumer debt garnishments.
Step 7: Request Written Confirmation of Agreements
Ask Maine Revenue Services to send written confirmation of any payment arrangement, installment agreement, or other resolution discussed during your conversation, and keep copies of all correspondence, including notices, letters, and records of phone calls with dates and names of representatives.
Step 8: Follow Through on Agreed Commitments
If you agreed to a payment plan, make all payments on time, as missed payments can result in reinstatement of the levy, and if you decided to provide additional documentation or tax returns, submit them promptly with copies retained for your records.
Step 9: Monitor Your Paycheck and Communications
Verify that the garnishment amount withheld matches what was stated in the notice, watch for any changes to the withholding amount, and review all additional notices from Maine Revenue
Services regarding your account status or next steps required.
- Missing response deadlines: If the notice includes a deadline to respond or request
- Failing to contact the state directly: Many taxpayers delay or never contact Maine
- Assuming the garnishment cannot be stopped, payment arrangements, installment
- Providing incomplete financial information: When discussing resolution options,
- Not keeping detailed records: Maintain copies of all notices, letters, payment
- State tax notice review and response
- Penalty and interest reduction options
- Payroll and trust fund tax assistance
- Payment plan and relief eligibility review
- Representation with state tax agencies
Step 10: Notify Maine Revenue Services of Employment Changes
If you change jobs while the levy is active, contact Maine Revenue Services immediately to provide your new employer information, as the levy remains in effect. The state will issue a new garnishment order to your new employer if the debt remains unpaid.
Common Mistakes to Avoid administrative review, ignoring that deadline may eliminate your ability to dispute the debt or seek relief before the garnishment continues for an extended period.
Revenue Services, allowing the garnishment to continue without exploring payment plans, offers in compromise, or other solutions that could stop or reduce the withholding. agreements, or offer-in-compromise approvals can result in the release or reduction of the levy. Therefore, contact Maine Revenue Services to discuss available options rather than assuming the garnishment is permanent. provide accurate details about your income, expenses, assets, and economic hardship, as incomplete information may prevent the state from considering alternative arrangements that could reduce your burden. confirmations, and notes from phone conversations, including dates, times, and names of representatives, as these documents protect your rights and provide evidence of your compliance efforts.
Frequently Asked Questions
Can Maine Take More Than 25% of My Paycheck?
Yes, Maine state tax levies are exempt from the Consumer Credit Protection Act’s 25% limit.
Maine can withhold the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage per pay period, which often results in larger garnishments than consumer debt collections.
Will This Wage Garnishment Appear on My Credit Report?
No, state tax wage garnishments do not appear on credit reports from major credit bureaus.
However, if Maine refers your debt to a private collection agency, that collection account may be reported and could negatively impact your credit score.
What Happens If I Change Jobs While Under Garnishment?
The levy remains in effect continuously until released. You must notify Maine Revenue Services of your new employer, and the state will issue a new garnishment order to your new employer if the debt remains unpaid.
Received a State Tax Notice?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
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