Tennessee Final Notice / Intent to Enforce Checklist
What a Tennessee Department of Revenue Collection
Notice Means
A Tennessee Final Demand Letter or Intent to Levy notice signals that the Tennessee
Department of Revenue has exhausted standard collection efforts and plans to use enforcement tools to collect unpaid taxes. This notice arrives after earlier correspondence, typically a Notice of Proposed Assessment, has gone unanswered, or the balance remains unpaid.
The state formally announces its intention to proceed with legal collection procedures, such as wage garnishment, bank levies, or property lien filings. Receiving this notice means the matter has escalated beyond routine billing and requires immediate attention.
Why Tennessee Issues This Notice
Tennessee tax law grants the Department of Revenue specific collection authority when taxes remain unpaid or returns go unfiled beyond prescribed deadlines. This collection notice is issued after a Notice of Proposed Assessment is sent and the taxpayer has not responded or paid within 30 days.
Consequences of Ignoring the Notice
Ignoring this notice typically results in immediate enforcement action as described in the letter.
Possible actions include
- Wage garnishment directs your employer to withhold a portion of your paycheck.
- A bank can freeze and seize funds from your accounts.
- Property seizure involves the seizure of personal property or real estate.
- Tax lien filing creates a public record claim against your assets.
The longer you delay response, the more expensive and complicated the resolution becomes.
Penalties and interest continue to accrue daily on unpaid balances.
What This Notice Does Not Mean
This notice does not mean your wages have already been garnished or your bank account has been frozen. It does not indicate that criminal charges have been filed against you. The notice warns that these actions are pending, not that they have already occurred. You retain the right to respond and potentially avoid or minimize enforcement action.
Steps to Take After Receiving the Notice
Read and Document the Notice Immediately
Locate the notice and read every page, including all attachments. Identify the tax year or years involved, the total amount owed, and the specific deadline for response. Note the enforcement action the state plans to take, such as a levy or lien. Keep the original notice in a safe place and make copies for your records.
Verify the Information Listed
Check that your name, address, and taxpayer identification number appear correctly on the notice. Confirm the tax type listed, such as sales tax or franchise and excise tax. Review the amount owed and compare it to your records. Search your files for prior notices or bills related to these tax years.
Determine Your Deadline and Response Requirements
Find the date the notice was issued and the specific deadline for payment or response. A Notice of Proposed Assessment allows 30 days to resolve the issue before a Final Demand Letter is created. Final Demand Letters typically require compliance within 10 days before collection action begins. Mark the deadline on your calendar and set reminders.
Gather Supporting Documentation
Collect all tax returns, payment confirmations, and correspondence for the tax years in question.
Locate bank statements, canceled checks, or electronic payment receipts proving any payments you made.
Contact the Department Promptly
Call the Tennessee Department of Revenue at 615-253-0600 for Nashville area and out-of-state callers, or 1-800-342-1003 for toll-free in-state calls. Explain that you received a Final Demand
Letter or Intent to Levy notice. Provide your name, taxpayer identification number, and the tax years involved. Ask for clarification about the debt and your options for resolution.
Respond Before the Deadline
Submit payment in full by the deadline, including the account number from the notice. Request a payment plan in writing if you cannot pay the full amount immediately. Tennessee allows payment plans ranging from two to 60 months for eligible taxpayers. Apply online through
TNTAP for immediate approval decisions.
What Happens After You Respond
The department reviews your response and notifies you in writing of the next steps. Payment in full resolves the matter and stops enforcement action.
Approved payment plans prevent new collection actions as long as you remain current with installment payments. The state sends written confirmation of payment plan terms, hearing schedules, or decisions on disputes.
Avoiding Common Errors
Many taxpayers ignore the notice, assuming another warning will arrive, but no additional notice is required before enforcement begins. Others pay without including the reference number from the notice, which delays the correct crediting of the payment.
Missing the stated deadline often results in an immediate levy or lien action. Always save receipts, confirmation numbers, and tracking information proving you responded on time.
Record Retention Requirements
Tennessee law requires taxpayers to maintain tax records for three years from December 31 of the year in which the return was filed. This retention period aligns with the three-year statute of limitations for tax assessments.
Keep all notices, correspondence, payment confirmations, and supporting documents organized in a dedicated file. Save documentation proving you responded to collection notices and any agreements you reached with the state.
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.
We help with
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
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