New Jersey Active Collections Timeline Checklist

and the debt remains unpaid for a defined period. Enforcement is part of standard state collection procedures used to recover all types of unpaid taxes: income tax, sales tax, business taxes, and other obligations.

Under New Jersey law (N.J.S.A. 54A:9-12), the Director of Taxation must provide notice and demand for payment. If payment is not made within 10 days, the Director may issue a Certificate of Debt and pursue enforcement actions. The state does not typically move to enforcement immediately; instead, it follows a sequence of notices and requests before taking collection action.

However, official New Jersey guidance does not publicly specify the exact number of notices required before enforcement begins, so that these details may vary by case type.

What Happens If This Is Ignored

Continuing to ignore enforcement or failing to respond to enforcement notices typically results in escalation. The state may add more accounts to collection action, expand

garnishment amounts, or pursue additional collection methods. Liens placed on property can remain enforceable for up to 20 years from the date of filing and may be renewed under New Jersey law.

The longer enforcement remains unaddressed, the more difficult and costly the situation becomes. In some cases, failure to respond can result in civil court proceedings, judgments, or referral to debt collectors or collection agencies. Standard administrative practice shows that unresolved enforcement accounts continue to accumulate penalties and interest over time.

What This Does NOT Mean

State enforcement does not mean criminal charges have been filed against you. Tax debt collection in New Jersey is a civil matter, not a criminal one. Enforcement also does not automatically mean all of your assets will be seized or that you will lose your job (wage garnishment has legal limits under the Statute of Limitations and consumer protection laws). Being under enforcement does not mean you have no options or ability to address the situation. Many taxpayers in enforcement have successfully negotiated payment plans or other arrangements. Enforcement is serious, but it is not a permanent, unchangeable status.

New Jersey Active Collections Timeline: What to Do

Use this checklist as a procedural reference if you are currently under state enforcement or have received enforcement-related notices.

Step One: Locate and Review All Enforcement Notices

• Find every notice, letter, or document the New Jersey Division of Taxation has

sent you regarding this debt.

• Read the heading and first page carefully for the notice type (examples: "Notice

of Levy," "Notice of Wage Garnishment," "Notice of Lien").

• Identify the tax type (income tax, sales tax, corporate tax, business tax, etc.) and

note the original tax year or period the debt relates to.

• Write down any account number or reference number listed on the notice and

identify any deadline mentioned in the letter.

• Keep all documents organized in one folder for easy reference.

Step Two: Verify the Debt Is Actually Owed

• Contact the New Jersey Division of Taxation at (609) 292-6400 or visit

nj.gov/treasury/taxation to confirm the debt exists and is in your name.

• Request a current account statement showing the original debt, penalties, and

interest added since the original assessment.

• Ask the Division of Taxation to confirm the tax year, the original amount, and the

current balance.

• Obtain a written statement of the account status.
• If the debt relates to a business, confirm that the business name and entity type

are correct.

Step Three: Check for Collection Authority Issues

• Determine the tax year or period the original debt relates to.
• Under New Jersey law, once a Certificate of Debt is filed, liens can remain

enforceable for up to 20 years from the date of filing and may be renewed.

• Contact the Division of Taxation to confirm whether collection authority still exists

if the debt is ancient.

• Ask about the assessment period and whether any statutory timeframes apply to

your specific case, as the Statute of Limitations may affect collection authority in certain circumstances.

Step Four: Determine If Enforcement Actions Are Currently Active

• Request a list from the Division of Taxation of all current enforcement actions

against you (wage garnishment, levies, liens, refund intercept).

• Ask what percentage of your wages is being garnished through income

withholding, if applicable.

• Ask which bank accounts or assets have been levied, if applicable.
• Ask if a lien has been filed and against which property.
• Obtain copies of all enforcement documentation for your records.

Step Five: Gather Financial and Income Information

• Collect recent pay stubs (last two to three months) showing current wages and

any existing garnishments or income withholding.

• Gather recent bank statements showing account balances, direct deposit

records, and account activity.

• Compile a list of all assets in your name (property, vehicles, retirement accounts).
• Document current monthly household income from all sources, including support

payments or other regular deposits.

• List all monthly expenses (rent, utilities, food, insurance, child support, other debt

payments).

• Prepare a summary of any financial hardship or changed circumstances since

the original debt was assessed.

Step Six: Determine If Response Deadlines Apply

• Review all enforcement notices for any deadline to respond (typically 10 to 30

days from the notice date, but check your specific notice).

• Note whether the notice requires a written response, payment, or both.
• Confirm the mailing address where responses should be sent.
• If no deadline is clearly stated, contact the Division of Taxation directly to confirm

timing requirements.

• Mark response deadlines on a calendar and set reminders to ensure timely

compliance.

Step Seven: Research Your Options for Addressing the Debt

• Visit nj.gov/treasury/taxation and search for taxpayer relief, payment plan, or

hardship options.

• Note any published forms related to penalty abatement, payment arrangements,

or collection alternatives.

• Document the official names and descriptions of available options.
• Review any eligibility requirements or application procedures listed on the official

state website.

• Keep copies of this information for your reference and future communications.

Step Eight: Prepare a Written Response or Request

• Draft a letter on plain paper addressed to the New Jersey Division of Taxation.

• Include your full name, address, phone number, and any account or reference

number from the enforcement notice.

• State clearly the reason for your letter (disputing the debt, requesting a payment

plan, reporting financial hardship, etc.).

• Include only factual information; avoid emotional language or accusations.
• If requesting a payment plan, include your financial summary from Step Five

showing income, direct deposit information, and monthly expenses.

• Keep a copy of everything you send to the state for your records.

Step Nine: Submit Your Response Before Any Deadline

• Follow the submission instructions on the enforcement notice (mail, fax, or online

portal if available).

• If no instructions are provided, send your letter by certified mail with a return

receipt requested to ensure delivery proof.

• Verify the current mailing address on your specific notice or by calling (609)

292-6400, as different types of correspondence may have different P.O. Box addresses.

• Do not assume email is acceptable unless explicitly stated in the notice.
• Keep the certified mail receipt as proof of submission and document the date

sent.

Step Ten: Document All Communication with the State

• Keep a record of every date you contact the Division of Taxation (phone calls,

emails, letters).

• Note the name of any person you speak with and what was discussed during

each conversation.

• Collect confirmation numbers, reference numbers, or case numbers provided.
• Save copies of any emails received from the Division of Taxation.
• Maintain this documentation for at least three to five years after the debt is

resolved, as these records may be necessary for future reference.

Step Eleven: Monitor Your Account and Enforcement Status

• Check your bank accounts regularly to confirm what amounts are being withheld

or levied.

• Review your pay stub monthly to confirm the amount of wage garnishment or

income withholding.

• Contact the Division of Taxation monthly (or as directed) to request updated

account information.

• Track any changes in the enforcement action (amounts changing, enforcement

stopping, new enforcement starting).

• If enforcement action stops, request written confirmation that it has been

discontinued.

What Happens After This Is Completed

After you submit a response, request, or documentation to the Division of Taxation, the state typically reviews your submission and decides whether to proceed with the enforcement action, modify it, or suspend it pending further review. The processing

timeframe is not clearly published in official New Jersey guidance, but administrative review typically takes 20 to 45 days.

The state may request additional information, contact you by phone or mail, or send a notice of decision. Enforcement actions do not automatically stop when you submit a request; the Division of Taxation must formally approve a change in status. You may receive multiple notices during the review process, and it is vital to respond to each one by the stated deadline to maintain compliance.

Common Mistakes to Avoid

• Ignoring enforcement notices or deadlines: Failing to respond by the deadline

in the notice significantly reduces options and may result in immediate enforcement escalation.

• Assuming enforcement will go away on its own: Enforcement actions remain

active and typically worsen over time if unaddressed, unlike time-barred debts, which may have different rules.

• Sending incomplete or unclear information to the state: Always include your

account number, tax year, name, and a clear explanation of your request or situation.

• Making partial payments without a formal agreement: Paying some of the

debt without a documented payment plan may result in penalties or interest rather than reducing the principal debt.

• Providing false or misleading information about income or assets: The

Division of Taxation may verify information you provide; inaccuracy can delay resolution and create additional problems.

• Failing to keep copies of everything: Without documentation, you cannot

prove what you sent or when you sent it.

• Assuming the debt has been paid off without written confirmation: Always

request and retain written proof that the debt has been satisfied.

• Not reading the entire enforcement notice: Important instructions, deadlines,

and contact information are typically included in the full letter.

Frequently Asked Questions

How much of my wages can the state garnish for unpaid taxes?

New Jersey law sets limits on wage garnishment through income withholding, but the exact percentage depends on the type of tax debt and other factors. Contact the

Division of Taxation at (609) 292-6400 to confirm the garnishment amount on your account.

If I set up a payment plan, will the enforcement action stop?

In many cases, enforcement actions may be suspended or modified if a formal payment plan is approved. However, this is not automatic; the Division of Taxation must explicitly agree in writing to suspend enforcement.

How long does a lien remain enforceable?

Under New Jersey law, once a Certificate of Debt is filed, liens can remain enforceable for up to 20 years from the date of filing and may be renewed. The lien remains until the tax debt is paid in full and a release is filed correctly.

Can the state take money from my retirement account?

New Jersey can levy certain retirement accounts to collect state tax debts, though some federally protected benefits are exempt. The rules are complex and depend on the type of account. Contact the Division of Taxation to confirm what types of accounts may be subject to levy under New Jersey law.

What happens if I do not have the money to pay the debt right now?

Contact the Division of Taxation at (609) 292-6400 to discuss options. Payment plans or other arrangements may be available, but these are not guaranteed and depend on your specific situation.

Can I dispute the debt if I believe it is incorrect?

Yes. You can submit a written request to dispute the debt, but you must do so promptly.

Contact the Division of Taxation to learn the correct procedure for filing a debt dispute.

Will this enforcement action affect my credit score?

Tax liens and state tax enforcement actions are no longer reported to consumer credit bureaus as of 2018. However, Certificates of Debt are public records that may be discovered by lenders or others conducting public record searches.

How do I prove the debt has been paid off?

Request a Certificate of Release or an account clearance letter from the Division of

Taxation. Do not assume the debt is paid solely because enforcement has stopped; obtain written confirmation.

Are there consumer protections for tax debt collection?

While the Consumer Financial Protection Bureau and the Federal Trade Commission regulate private debt collectors, state tax collection is governed by different rules under

New Jersey law. However, taxpayers have the right to dispute debts, request payment plans, and appeal decisions.

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.

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• State enforcement notices and responses
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