North Dakota Wage Garnishment Checklist: State Tax
Enforcement
What This Issue Means
A wage garnishment order means the North Dakota Office of State Tax Commissioner has instructed your employer to deduct money from your paycheck to pay your tax debt. Your employer must legally comply with this court order, and the garnishment continues until the debt is paid in full or the state releases it.
Why the State Issued This Order
North Dakota issues wage garnishment orders when a taxpayer has an unpaid state income tax liability and standard collection methods have not resolved the debt. State law requires at least ten days’ written notice before garnishment under the North Dakota Century Code, which provides specific judicial remedies for tax collection. If you did not receive this mandatory notice before garnishment, contact the tax office immediately because the garnishment may be void.
What This Does Not Mean
A wage garnishment does not mean you have lost your job or that criminal charges have been filed against you. It does not mean the state has seized your bank account through bank levies or other personal property, as those are separate collection actions. The garnishment specifically affects only your future wages and does not automatically terminate your employment.
What Happens If This Is Ignored
If you do not respond to the wage garnishment, the garnishment will continue until the debt is satisfied. Ignoring the garnishment does not stop the garnishment process or reduce the amount owed on the debt. The state may pursue additional collection actions, including tax liens, tax levies, or referrals to legal counsel. Addressing the underlying tax debt directly is the most effective course of action.
Understanding How Garnishment Works
The garnishment process begins when the state issues a garnishee summons to your employer, requiring income withholding from your disposable earnings each pay cycle. North Dakota wage garnishment laws follow the North Dakota Century Code provisions that govern judicial remedies for debt collection.
Unlike garnishments for child support, student loans, or consumer debt, state tax garnishments are not subject to standard federal minimum wage exemptions. Your employer must provide written answers through a disclosure form confirming the garnishment and withholding amounts.
Step-by-Step Checklist: What to Do After Receiving a
Wage Garnishment Order
Step 1: Confirm You Received the Garnishment Order
Verify that your employer informed you about the garnishment and request a copy of the garnishee summons if you do not have one. Check your pay stubs to confirm amounts are being withheld from your disposable income, and note the date you became aware of the garnishment.
Step 2: Locate Your Garnishment Documentation
Find any notice before garnishment or a letter from the North Dakota Office of State Tax
Commissioner about the income withholding order, and gather information about the tax year involved. Identify the total amount owed if stated in the notice, and keep all correspondence and case activity records from the state in one organized place.
Step 3: Verify the Tax Debt Information
Review the amount shown as owed on the court order and check if the tax year or years listed match your records. Look for any penalties or interest amounts included in the total and note any discrepancies between what you believe you owe and what the garnishment order states.
Step 4: Contact the North Dakota Office of the State Tax Commissioner
Call the office at the number listed on the garnishment order or official correspondence and provide your name, Social Security number, and tax year in question. Request a breakdown of the current account balance and inquire about the collection steps taken before the administrative garnishment was issued.
Step 5: Review Your Payment Options
Ask the state if you can pay the full amount owed to release the garnishment immediately, or inquire about debt relief options, including payment plans. Request any payment terms in writing before sending money, and confirm how payments will be applied to your account balance toward resolving the consumer debt.
Step 6: Determine If You Have Grounds to Challenge the Garnishment
Verify that the tax debt is actually yours and the amount is correct by reviewing your tax records and any previous correspondence. Check if the mandatory ten-day notice before garnishment
was properly served because failure to provide this notice renders the income withholding order void under North Dakota Century Code provisions.
Step 7: Request Garnishment Release or Modification If Applicable
If the debt has been paid in full, ask the state to release the garnishment immediately and provide written confirmation. If a payment plan has been approved, ask whether the income withholding will be suspended or released, and ensure your employer receives official notification through proper channels.
Step 8: Monitor Your Pay Stubs
Continue checking your pay stubs for garnishment withholdings from your disposable earnings each pay cycle, and verify that withholdings stop once the garnishment is officially released.
Keep all pay stubs as proof of compliance and payment toward the debt, and report any errors to both your employer and the state immediately.
Step 9: Document All Communication
Keep a detailed record of all phone calls, including dates, times, and names of state employees you spoke with during the garnishment process. Save all letters, written answers, and notices from the state, along with copies of any agreements or payment arrangements in writing.
- Not contacting the state immediately: Waiting or hoping the garnishment goes away
- Ignoring the garnishment order: Your employer is legally required to comply with the
- Not verifying the debt amount: Before paying, confirm the exact amount owed and the
- Making informal payment arrangements: Agreements with the state must be
- Not requesting written confirmation: Always ask for written confirmation when a
- Confusing tax garnishments with other types: State tax garnishments follow different
- 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: Follow Through on Any Agreement Made With the State
Make all payments on time if a payment plan was established, and contact the state immediately if you cannot make a scheduled payment. Keep the state informed of any changes in employment or income that might affect the agreement and request written proof when the income withholding order is released.
Common Mistakes to Avoid will not stop the debt collection process, and contacting the state early allows you to explore all available debt relief options. income withholding order, and ignoring it does not change this legal obligation or reduce the debt. tax year or years involved because errors can occur in tax records and case activity. documented in writing because verbal agreements are not sufficient to protect your
rights or stop collection actions. garnishment is released or modified to ensure your employer receives proper notification to stop withholding. rules than garnishments for child support, federal student loans, or consumer debt under wage garnishment laws.
Frequently Asked Questions
How much of my paycheck can the state take for tax debt?
For state or federal tax debts, North Dakota wage garnishment laws exempt them from the standard restrictions that apply to consumer debt. The typical 25% cap based on disposable income and the minimum wage exemption does not apply to tax collection under the North
Dakota Century Code. Contact the North Dakota Office of the State Tax Commissioner for specific information about your garnishment amount.
Can my employer fire me because of the wage garnishment?
North Dakota Century Code provisions prohibit employers from terminating employees due to wage garnishment for one debt under state and federal wage garnishment guidelines. However, if you have income withholding orders for two or more separate debts, federal protection does not apply, and termination is not prohibited.
What happens to the money withheld from my paycheck?
The money withheld from your disposable earnings is sent directly to the North Dakota Office of
State Tax Commissioner and credited to your tax account. It is applied first to the principal tax debt, then to any assessed penalties and accrued interest on the account balance.
How does this differ from other types of garnishment?
State tax garnishments follow different rules than garnishments for child support, federal student loans, or consumer debt under federal wage garnishment guidelines. Tax garnishments are not subject to the federal minimum hourly wage exemption or the standard twenty-five percent limit on disposable income that applies to most other debts.
Can I get help resolving this issue?
You may consult with a private attorney who specializes in tax law or debt relief to review your case activity and explore options. Free legal aid services may also be available, depending on your income level, to help you understand the garnishment process and your rights.
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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