Pennsylvania Final Notice / Intent to Enforce Checklist
What This Notice Means
Pennsylvania tax collection notices signal that the Department of Revenue intends to pursue enforcement action for unpaid tax debt. The state has determined you owe taxes, and previous payment requests remain unresolved.
Specific official notices, such as the Official Notice of Administrative Wage Garnishment Order and the Notice of Intent to Garnish Wages, are employed by the Department of Revenue. These notices precede enforcement actions such as wage garnishment, bank account levy, or property lien filing.
Why Pennsylvania Issues Collection Notices
Collection notices arrive when initial tax assessments remain unpaid past response deadlines.
Pennsylvania law authorizes the state to collect delinquent taxes through administrative enforcement without court approval.
Act 46 of 2003 grants the Pennsylvania Department of Revenue authority to garnish wages by ordering employers to withhold earnings directly from paychecks. Before enforcement measures are implemented by the state, collection notices function as formal legal notifications.
Consequences of Ignoring Collection Notices
Failing to respond to Pennsylvania tax collection notices triggers enforcement action. The
Department of Revenue can issue an Official Notice of Administrative Wage Garnishment Order requiring employers to withhold exactly 10 percent of your gross wages each pay period until the tax debt is satisfied.
A bank may freeze or seize funds in financial accounts to satisfy outstanding tax liabilities. The state establishes legal claims against assets and property through the filing of tax liens.
Pennsylvania will not stop active garnishments or bank attachments, even if a payment plan is requested after enforcement begins. Wage garnishment continues until you receive an official termination notice from the Department of Revenue, or the total amount due, plus accrued interest and penalties, is fully paid.
Understanding Wage Garnishment Under Pennsylvania
Law
Pennsylvania wage garnishment for tax debt operates under specific legal requirements established by Act 46 of 2003. The Pennsylvania Department of Revenue can withhold up to 10 percent of gross wages without obtaining court orders.
- Employers must implement garnishment within 60 days of receiving the Official Notice of
Administrative Wage Garnishment Order.
- Gross wages are subject to garnishment before tax withholding or other deductions.
- Employers are permitted to retain 2 percent of garnished wages as an administrative
processing fee.
- The Department of Revenue issues a Notice of Intent to Garnish, providing taxpayers 30
days to address liabilities before garnishment begins.
Steps to Take After Receiving a Collection Notice
Step 1: Review Your Notice
Examine your notice immediately for accuracy and identify the tax type, tax periods involved, amount owed, and any stated deadlines. Gather tax returns, payment records, and supporting documents for the years listed in the notice.
Step 2: Contact the Department of Revenue
Reach out to the Pennsylvania Department of Revenue using the phone number or address provided on your specific notice. Request confirmation of your current balance and any applicable deadlines during your contact with the representative.
Step 3: Determine Your Payment Option
Consider whether you can pay the full amount or need a payment arrangement. Request accepted payment methods and obtain receipt confirmation after submitting any payment.
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
Step 4: Request a Payment Plan if Needed
Standard payment plans are available for balances under $50,000 that can be paid within 12 months. Extended payment plans for amounts over $50,000 or terms exceeding 12 months require direct contact with the Department of Revenue. All previous tax returns must be filed before the state approves any payment plan. Pennsylvania will not pause or stop active wage garnishments or bank attachments to establish a payment plan.
Appeal Rights and Dispute Procedures
Taxpayers who dispute tax assessments can file a Petition for Reassessment using Form
REV-65 with the Board of Appeals. Personal income tax assessments allow 90 days from the mailing date to file appeals, while most other tax types maintain a 60-day appeal deadline.
This extended 90-day period for personal income tax became effective January 27, 2025.
Petitions can be filed electronically through the Board of Appeals Online Petition Center or submitted by mail.
Payment Plan Requirements
Pennsylvania offers payment plans for taxpayers unable to pay tax debt immediately. Standard plans require balances under $50,000 and repayment within 12 months or less.
Taxpayers owing more than $50,000 or needing terms beyond 12 months must contact the
Department of Revenue directly to establish extended payment plans. Before requesting any payment plan, ensure all required tax returns are filed and include any known balances not yet in collections by completing Form REV-638.
Payment plans do not automatically stop enforcement actions already in progress. Interest and penalties continue accruing during payment plan periods.
Defaulting on payment plan terms may result in immediate resumption of full collection enforcement, including wage garnishment and bank account levy. The Department of Revenue clearly states it will not stop active garnishments or bank attachments to set up payment plans.
Frequently Asked Questions
What percentage of wages can Pennsylvania garnish for tax debt?
Pennsylvania law authorizes the Department of Revenue to garnish up to 10 percent of gross wages under Act 46 of 2003. This garnishment applies to gross pay before any deductions.
Employers must withhold this amount each pay period and remit payments to the Department of
Revenue within three business days of each paycheck. Employers can retain 2 percent of the garnished amount as an administrative processing fee.
Can I appeal a Pennsylvania tax assessment?
Taxpayers can appeal by filing Form REV-65 with the Board of Appeals. Personal income tax assessments allow 90 days from the assessment mailing date to file appeals. Most other tax types have 60-day appeal deadlines. Appeals can be filed electronically through the Board of
Appeals Online Petition Center or submitted by mail to the Board of Appeals.
Will a payment plan stop wage garnishment?
Payment plans do not stop active wage garnishments or bank attachments already in place.
The Pennsylvania Department of Revenue explicitly states it will not halt enforcement actions to establish payment plans. Contact the Department of Revenue before garnishment begins to arrange payment terms and avoid enforcement action.
How long does Pennsylvania have to collect tax debt?
Pennsylvania can continue collection efforts and maintain tax liens for extended periods. Tax liens remain valid for five years from docketing and can be revived and continued by the
Department of Revenue. Early resolution prevents prolonged collection activity and additional interest accumulation on your outstanding balance.
What happens to my tax refund if I owe back taxes?
Pennsylvania automatically offsets tax refunds to pay outstanding tax debt. The state applies refunds directly to delinquent accounts without separate notice. This refund offset occurs independently from other collection actions like wage garnishment or bank levy.
Facing State Enforcement or Payroll Tax Issues?
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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