Nebraska Final Notice / Intent to Enforce Checklist

Nebraska Final Notice / Intent to Enforce Checklist

Understanding the Demand for Payment Notice

A Demand for Payment from the Nebraska Department of Revenue represents a formal written notification that the Tax Commissioner plans to use enforcement tools to collect an unpaid tax debt. This notice arrives after you have received either a balance due notice or a notice of proposed deficiency determination that has become final, and it informs you of the total amount owing, including tax, penalties, interest, and costs.

Why Nebraska Issues This Notice

The Tax Commissioner issues a Demand for Payment when a taxpayer fails to respond to prior notices or to pay a confirmed tax debt under the revenue laws. According to Nebraska regulations, the Department must first mail either a balance due notice or a notice of deficiency, and collection actions cannot commence until one of these initial notices becomes final and the

Tax Commissioner subsequently mails a Demand for Payment.

What Enforcement Actions May Follow

If you do not address the Demand for Payment, the Tax Commissioner may proceed with various collection actions authorized under the Nebraska Revenue Act of 1967 and the Uniform

State Tax Lien Registration and Enforcement Act. The Department has the authority to issue a notice of levy against wages, bank accounts, or other income sources, and state tax liens may be recorded with the Secretary of State or register of deeds, creating a claim against your real property, personal property, and property rights.

Property seizure and sale may occur through administrative action or by the county sheriff; tax refunds may be intercepted; and license suspension or revocation may be pursued through a separate formal hearing process with a hearing officer. These enforcement tools operate independently, meaning the use of one method does not prevent the state from pursuing other collection procedures simultaneously.

What This Notice Does Not Mean

Receiving a Demand for Payment does not mean your wages are currently being garnished or your bank account has been levied at that moment. The notice warns that enforcement is planned, not that it has already begun, and you have not lost the right to request a payment plan. However, payment agreements may be subject to Department approval based on your financial condition and whether a bankruptcy petition has been filed.

Immediate Steps to Take After Receiving This Notice

Review the entire notice carefully to identify the type of tax owed, the tax year or period involved, the total amount due, the Department contact information and case number, the response deadline, and the name of any assigned collection officer. Determine whether you agree with the amount owed by reviewing your tax records, prior filings, any amended return you submitted, and any correspondence with the state, and gather all relevant documents before contacting the Department.

Contact the Nebraska Department of Revenue immediately using the contact information provided on the notice. Provide your case number, the tax year or period involved, and your identification number when you call or write. Explain your reason for contacting the Department clearly, and if you cannot pay the full tax payment amount immediately, ask about installment payment options while providing honest information about your financial circumstances and whether any federal change or state change affects your liability.

Payment Plan Options and Requirements

Nebraska offers payment arrangements under specific conditions outlined in the revenue laws.

You may pay any delinquency over a period of ninety days without a written payment agreement. Still, any arrangement to pay a delinquency over 90 days must be in writing and provide for electronic tax payment.

Individual income tax agreements that provide for electronic funds transfers satisfying the delinquency within twenty-four months do not require a financial statement. Any tax program other than personal income tax requires electronic funds transfers satisfying the delinquency within twelve months to avoid submitting a financial statement, but any payment agreement must require you to make timely payments and to file all future returns and pay all future taxes timely.

Settlement and Relief Options

The Department may consider settling a delinquent individual income tax account for less than the full amount through an offer in compromise or a hardship settlement request. You should inquire about eligibility for this option when discussing your financial circumstances with the

Department, ask what documentation is needed to evaluate your request, and always request written confirmation of any agreement reached, including payment amounts, payment dates, and a reference number for your records.

Your Procedural Rights Regarding Collection Actions

Nebraska regulations provide specific procedural rights when the state takes collection actions, including exemptions from levy for particular property types. For state tax liens, you may request in writing a determination that a lien is not valid against your interest in property within twenty days after the Demand for Payment is mailed. For levies or seizures, you may request in writing a determination that the action is not valid within twenty days after service of the notice or writ while claiming any applicable exemptions from levy.

The Department must respond to your request in writing within ten days of receipt and mail its response by first-class mail, and a Hearing Officer will review disputed matters. If you disagree with the Department’s decision, you may appeal under the Administrative Procedure Act before a Hearing Officer, and these procedural rights apply to the collection action itself. In contrast, appeal rights for the underlying tax assessment follow different procedures, including the right to file a petition for redetermination.

Exceptional Circumstances and Additional Protections

If you have filed a bankruptcy petition, the automatic stay provisions may temporarily halt collection actions, and you should notify the Department immediately. The Department may deposit excess funds from property sales with the State Treasurer as trustee if you are unavailable, who then holds these funds for your benefit or your heirs. Specific property qualifies for exemptions from levy under Nebraska law, including necessary clothing, household goods up to specified dollar amounts, and professionally prescribed health aids, and you must file a written list with the Department within twenty days to claim these exemptions.

Common Mistakes and Documentation Requirements

Do not ignore the notice or miss any stated deadlines, and read it carefully to ensure you understand all requirements. Always request written confirmation of any agreement rather than relying on verbal assurances, and make agreed-upon payments on time and in whole, since missing even one payment can breach the contract and trigger enforcement without further notice from the Tax Commissioner.

Keep detailed records of all communication with the Department, including dates, times, names of staff members, and content of conversations. Follow up phone conversations with written correspondence confirming what was discussed; save all correspondence received from the

State Treasurer or Department; and send payments by check, money order, or electronic transfer, creating a record and including your case number with the payment.

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.