New Hampshire Notice of Bank Levy Checklist
Understanding the Order to Withhold
An Order to Withhold from the New Hampshire Department of Revenue Administration directs your bank to freeze or transfer funds from your account to satisfy unpaid state tax obligations. This enforcement action represents a formal collection step that occurs after previous billing notices have gone unaddressed.
The state uses this legal mechanism to collect outstanding balances on business profits tax, business enterprise tax, meals and rooms tax, and other state taxes administered by the DRA. New Hampshire eliminated its interest and dividends tax as of January 2025 and maintains no general income tax or sales tax.
Authority and Scope of Collection Actions
The collections division operates under RSA 21-J:8 and possesses authority to distrain personal property and financial accounts under RSA 21-J:28-d. Your bank receives the order and must comply with the directive by holding the specified amount.
Enforcement applies only to the specific account named on the order and only for the amount stated in the documentation. The collection authority extends to business taxes, excise taxes, and other revenue obligations within the department’s jurisdiction.
Why the State Issues This Order
The DRA typically issues an Order to Withhold after a tax assessment becomes final and remains unpaid through earlier collection attempts. You likely received previous notices about the outstanding balance before the state moved to direct collection action.
Immediate Steps to Take
Contact your bank immediately upon receiving the order. Ask the customer service representative when the hold or transfer will take effect and whether the order applies to all accounts or only specific ones.
Review the order carefully to verify the following details:
- Verify that your correct name appears on the order along with your tax identification number.
- Confirm the tax year or period referenced matches the timeframe in question.
- Check the total amount the state claims you owe against your own records.
- Identify the financial institution named on the enforcement order.
- Note any deadline or contact information provided by the collections division.
Confirm the debt matches your own tax records for that period. Document any discrepancies in the name, identification number, or tax year immediately.
Contacting the Department of Revenue Administration
Locate the phone number on your Order to Withhold or visit the DRA website to find contact information for the collections division. Provide your name, tax identification number, and the specific tax year when you call.
Ask whether the debt calculation is correct and what documentation supports the assessment. Request information about available payment options during this conversation.
Document every interaction with the collections division by recording the date, time, representative’s name, topics discussed, and instructions provided. Keep copies of all written correspondence in a dedicated folder.
Understanding Your Appeal Rights
New Hampshire law provides taxpayers the right to appeal a tax assessment within 60 days under RSA 21-J:28-b. You must file your appeal with the DRA hearings bureau within this timeframe after receiving the notice of assessment.
This appeal right applies to the underlying tax assessment itself, not specifically to collection actions taken after an assessment becomes final. The statute does not provide for automatic suspension of collection activities during the appeal process.
Contact the hearings bureau immediately if you believe the original assessment was incorrect to determine whether you can still file an appeal. You may submit appeals directly through the Granite Tax Connect portal or by completing Form A-101.
An appeal must include the following information:
- Include your name, address, and tax identification numbers on the appeal form.
- Provide a statement of facts and issues that clearly describes your position.
- Specify the tax year in question in the appeal documentation.
- State explicitly the action you request from the department.
- Cite relevant legal authority supporting your position when applicable.
- Attach a copy of the assessment notice to your appeal submission.
Appeals sent by mail must be postmarked within the 60-day period to be considered timely filed.
Payment Options and Financial Hardship
The DRA may enter into written installment payment agreements under RSA 21-J:43 if it determines the agreement facilitates the collection of delinquent taxes, penalties, and interest. Payment plan approval remains discretionary, and requesting a plan does not automatically release the order.
Explain your financial situation honestly to the collections division representative if you cannot pay the full amount immediately. Request information about installment agreements and ask what documentation you need to provide.
Submitting the first proposed installment payment with your request may strengthen your application. Keep records of all payments made and obtain confirmation documentation showing amounts paid and dates received.
Protected Funds in Your Account
Federal law protects Social Security benefits, Supplemental Security Income, Veterans Affairs benefits, and certain other federal payments from garnishment. State law under RSA 282-A:159 exempts Social Security benefits from attachment.
Contact your bank to discuss whether any deposits in your account qualify as protected funds. Banks must review accounts for federal benefit deposits and may be required to protect amounts equal to two months of federal benefits. You may need to file documentation proving the source of protected funds to claim these exemptions.
What Happens After the Order Processes
Funds transfer to the state to satisfy your tax debt once your bank processes the Order to Withhold. Contact the collections division after the transfer to confirm whether the payment satisfied the entire balance or whether you still owe additional amounts.
Request written confirmation if the debt has been paid in full. Keep all documentation related to the order, including bank statements showing the withdrawal, confirmation letters from the DRA, and receipts for any direct payments you made.
Common Mistakes to Avoid
Missing the 60-day deadline to appeal the underlying tax assessment eliminates your administrative appeal rights. Failing to contact the collections division leaves you without information about potential payment arrangements.
Closing your bank account immediately after receiving the order does not prevent the state from pursuing other collection methods. Ignoring follow-up correspondence from the DRA or your bank may result in additional enforcement measures or missed opportunities to resolve the debt. Provide accurate financial information when discussing payment options, as incomplete disclosure may result in the denial of installment agreements.
Received a State Tax Notice?
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
