Florida DR-46 Intent to Garnish: Taxpayer Relief Guide

Receiving a Florida DR-46 Intent to Garnish notice can be unsettling for any taxpayer or business owner. This document signals that the Florida Department of Revenue intends to collect unpaid taxes by garnishing wages, seizing bank accounts, or levying other assets. While the notice may appear urgent or intimidating, understanding its purpose and the available options can help individuals and businesses respond effectively and protect their financial stability.

The state utilizes the DR-46 Intent to Garnish as a component of its official procedure for collecting delinquent accounts. Typically, it follows earlier notifications or correspondence from the department regarding unpaid taxes or unresolved returns. Taxpayers who fail to comply with their obligations on time may face enforcement actions, additional fines, and interest. However, the notice also provides an opportunity to request a payment plan, submit any missing tax returns, or contact the department to resolve the issue before further action is taken.

This guide explains the meaning of the Florida DR-46 Intent to Garnish, the reasons behind its issuance, and the steps taxpayers can take to prevent it from getting worse. It describes the laws that grant the department the authority to take specific actions, outlines how to check and respond to notices, and details the available remedies. To avoid future collection events, readers will learn how to submit documents, request agreements, and maintain compliance with relevant regulations.

What Is the Florida DR-46 Intent to Garnish?

The Florida Department of Revenue formally notifies a taxpayer that it intends to use garnishment to collect unpaid taxes by issuing the Florida DR-46 Intent to Garnish. To settle an outstanding balance owed to the state, the department may take action to seize wages, bank accounts, or other funds. Usually, the notice is sent following unsuccessful attempts to collect the debt.

Key Details About the DR-46 Intent to Garnish

• Purpose: The notice serves as a final warning before enforcement begins. It notifies the taxpayer that the department intends to garnish assets or income if the amount due is not paid or resolved within the stated period.
  
  
• Legal Basis: Florida Statutes, Chapter 213, and the Florida Administrative Code, Rules 12-21.204 and 12-21.205, grant the department the authority to issue this notice and initiate garnishment proceedings.
  
  
• Response Window: Taxpayers typically have 30 days from the date of the notice to take action before garnishment begins. During this time, they may pay the balance, request a payment plan, or file a dispute if they believe the amount is incorrect.
  
  
• Information Included: The notice typically contains the taxpayer's name, account number, payment amount, due date, and instructions for submitting payments or contacting the department by phone or mail.

Understanding this notice helps taxpayers take timely action to avoid the seizure of funds or property. By carefully reviewing the document, confirming its accuracy, and communicating with the department, individuals and businesses can agree or make payment arrangements to resolve the issue and restore compliance.

Legal Authority and What the Law Says?

According to state law, the Florida Department of Revenue can send out a DR-46 Intent to Garnish. These laws and rules specify the circumstances under which the department may use garnishment or levy actions to collect unpaid taxes. If taxpayers are familiar with these legal terms, they will have a better understanding of their rights and responsibilities during the collection process.

Key Legal References

• Florida Statute 213.67 (Levy on Assets): This law grants the department the authority to seize assets to collect unpaid taxes, including deposits, wages, and other property. It also sets the conditions and procedures for levies.
  
  
• Florida Statute 213.68 (Garnishment Procedures): This law outlines the procedures for garnishing funds from bank accounts or wages and explains the rights of all parties involved.
  
  
• Florida Administrative Code Rule 12-21.204 (Notice Issuance): This rule governs the process for issuing a Notice of Intent to Levy or Garnish, ensuring that taxpayers receive written notice before any enforcement action.
  
  
• Florida Administrative Code Rule 12-21.205 (Levy on Frozen Assets): This regulation outlines the department's actions when funds or property are temporarily frozen during the collection process.

These legal authorities ensure the department follows specific procedures when enforcing payment collection. They also guarantee that taxpayers receive notice, have the opportunity to respond, and can request a review before any funds are seized.

Why Did You Receive a DR-46 Intent to Garnish?

A DR-46 Intent to Garnish is typically issued after other collection attempts have failed. It indicates that the taxpayer or business has not settled an outstanding balance or has been unable to comply with state tax laws. The department issues this notice to prompt corrective action before garnishment begins.

Common Reasons for Receiving This Notice

• Unpaid tax balance: A taxpayer may owe money from previously filed or unfiled tax returns, audit assessments, or unpaid penalties and interest. If the balance remains unresolved, the department initiates collection action.
  
  
• Unfiled tax returns: Failure to file required returns can result in the department estimating the tax owed based on available information. Continued noncompliance may result in a notice and potential garnishment.
  
  
• Defaulted payment agreements: Taxpayers who previously entered into a payment plan but failed to meet the required terms may receive a DR-46 notice due to nonpayment or missed installments.
  
  
• Data matching programs: The department may review federal tax returns, business registrations, or reports from third parties to identify discrepancies that indicate unreported income or unpaid taxes.

The notice provides taxpayers with an opportunity to correct errors, submit required forms, or arrange for payment before enforcement begins. Addressing the issue promptly can prevent additional penalties, interest, and the loss of access to personal or business funds.

What Happens If You Ignore This Notice?

Ignoring a DR-46 Intent to Garnish can result in significant financial and legal consequences. Once the response period expires, the department has full authority under Florida law to take collection actions without further warning.

Consequences of Ignoring the DR-46

• Bank account levy: The department may seize money directly from a taxpayer's deposit accounts, including checking and savings accounts. Once funds are frozen, the taxpayer cannot access them until the debt is paid in full.
  
  
• Wage garnishment: The department may direct an employer to withhold a portion of the taxpayer's wages or commissions to settle the outstanding balance. This process continues until the full debt, including interest and penalties, is paid.
  
  
• Seizure of property: The department may place a lien on real estate, vehicles, or business property and eventually sell those assets to cover the outstanding amount.
  
  
• Additional charges: If the balance remains unpaid after 90 days, a 10% administrative collection fee will be added to the total due, along with ongoing interest and penalties.
  
  
• Professional and business impact: Taxpayers who hold professional licenses, business permits, or sales tax registrations risk suspension or revocation for continued noncompliance.

Failure to respond to the notice can result in more severe enforcement measures, damage to your credit, and long-term financial hardship. Taking immediate steps to contact the department, verify the balance, and request a resolution helps avoid further collection actions and restores compliance with state requirements.

How to Respond to the DR-46 Intent to Garnish?

A DR-46 Intent to Garnish must be addressed promptly to prevent the Florida Department of Revenue from seizing your funds or assets. It is recommended that taxpayers carefully read the notice, verify all the information, and take action within the allotted time. Before the start of the collection, the department offers several solutions to the problem.

Step-by-Step Response Process

1. Review the notice carefully: Ensure that the name, account number, payment amount, and due date are accurate. Ensure the tax type and period match your records and that the balance reflects recent payments, if any.
   
   
2. Gather documentation: Collect recent tax returns, proof of payment, correspondence with the department, and financial records. Having accurate documentation supports any disputes or requests that may arise.
   
   
3. Verify the accuracy of the balance: Taxpayers can verify the accuracy by comparing the notice details with their records. If payments were made but not credited, please contact the department immediately to provide the necessary evidence.
   
   
4. Contact the department: Taxpayers may call the telephone number listed on the notice or visit a local service center. Department representatives can provide additional information and explain payment or dispute options.
   
   
5. Submit a response or payment: If the balance is correct, the taxpayer may pay in full, request a payment plan, or submit the required forms and documents by mail. Those disputing the amount can request an administrative review or hearing.

Taking these steps ensures the department reviews the account before enforcing garnishment. Taxpayers who respond quickly demonstrate good faith and can often avoid immediate collection action.

Options for Resolving Your Tax Debt

There are several options available for taxpayers who are unable to pay the entire amount at once to settle their debt and avoid garnishment. The Florida Department of Revenue offers relief programs and structured agreements tailored to meet the unique financial needs of each taxpayer.

Payment Plans

• Purpose: A payment plan gives taxpayers the option to make payments over time when they are unable to pay the entire amount immediately.
  
  
• Requirements: The department typically requests an initial payment and consistent monthly installments until the total amount due—including any interest and penalties—is fully paid.
  
  
• Process: Taxpayers must contact the department to request a plan, submit their income details, and sign a formal agreement. If the terms are not met, the department may proceed with immediate enforcement actions.

Penalty Abatement

• Purpose: Penalty abatement provides relief by reducing or eliminating penalties when a taxpayer can demonstrate reasonable cause, such as illness, natural disasters, or administrative mistakes.
  
  
• Eligibility: To qualify, taxpayers must have filed all current tax returns and made all required payments up to date.
  
  
• Process: A written explanation, accompanied by supporting evidence, must be submitted to the department for review and approval.

Financial Hardship Relief

• Purpose: Financial hardship relief applies to taxpayers who cannot make full payments without facing severe financial strain.
  
  
• Options: The department may offer temporary relief by extending deadlines, postponing collection efforts, or lowering the required payment amounts.
  
  
• Documentation: Applicants are required to provide evidence of income, expenses, and assets to confirm eligibility.

Offer in Compromise

• Purpose: This option lets taxpayers pay off their debt for less than the full amount if they can't pay it all at once because of financial problems or other unusual situations.
  
  
• Process: Taxpayers must complete a detailed financial disclosure and submit a written proposal. The department will review the submission and decide whether to accept the offer.

Professional Representation

• Purpose: Taxpayers may hire a tax professional, such as an attorney or enrolled agent, to handle communication with the department.
  
  
• Benefit: Professionals can assist in negotiating agreements, submitting documentation, and ensuring compliance with state requirements.

By selecting the appropriate resolution method, taxpayers can safeguard their assets, prevent garnishment, and reinstate their accounts to good standing with the department.

Real-Life Example: How One Taxpayer Avoided Garnishment

A small business owner in Jacksonville received a DR-46 Intent to Garnish for unpaid sales tax totaling $12,000. The taxpayer had filed tax returns but fell behind on payments due to delayed customer invoices. Concerned about losing access to business funds, the owner took immediate action.

Actions Taken

• The taxpayer contacted the department within one week of receiving the notice to request a review of the account.
  
  
• They gathered all recent tax filings, payment records, and bank statements to verify the accuracy of the balance.
  
  
• A payment plan was requested, and the required financial documentation was submitted to support the request.
  
  
• An initial payment covering 25 percent of the total amount owed was made, followed by entry into a 12-month payment agreement for the remaining balance.

Outcome

The department authorized the payment plan, suspended garnishment activity, and reduced penalties for prompt communication. Future payments were made electronically while the taxpayer's business was open to stay in compliance.

This example shows how garnishment can be avoided and a manageable resolution facilitated by proper documentation, transparent communication, and departmental cooperation. By being proactive, taxpayers can safeguard their financial security and avoid unnecessary fines.

How to Prevent Future Garnishment Notices?

To avoid receiving garnishment notices in the future, it's essential to manage taxpayers’ finances effectively and always pay your taxes on time. They can prevent future enforcement actions by maintaining accurate records, meeting all filing deadlines, and promptly contacting the Florida Department of Revenue when issues arise.

Practical Steps to Maintain Compliance

• File all required tax returns on time: Late or unfiled returns are among the most common causes of garnishment notices. Filing on or before the due date helps prevent penalties and interest from accumulating.
  
  
• Pay the correct amount of taxes: Always verify the payment amount before submitting funds. Underpayment can create a balance that triggers collection action.
  
  
• Monitor department correspondence: Regularly review mail or electronic notifications from the department. Failing to respond to notices can result in enforcement without further warning.
  
  
• Maintain updated contact information: Ensure that the department has the correct address, phone number, and email so taxpayers receive important updates and instructions.
  
  
• Establish good recordkeeping practices: Keeping payment confirmations, filed returns, and correspondence helps resolve disputes quickly if discrepancies occur.
  
  
• Seek professional guidance: Consulting a tax professional or attorney can help taxpayers manage compliance, review agreements, and identify any potential risks before problems arise.

Consistent compliance not only prevents future garnishments but also helps taxpayers maintain access to funds, protect property, and avoid unnecessary charges.

Frequently Asked Questions

What should a taxpayer do after receiving a Florida DR-46 Intent to Garnish notice?

When a taxpayer receives a Florida DR-46 Intent to Garnish notice, it is essential to act before the due date listed on the form. The taxpayer should review the notice carefully, check the payment amount, and contact the department for additional information. If unable to pay in full, the taxpayer can request a payment plan or submit a written dispute. Taking timely action helps avoid penalties and interest.

Can the department garnish bank accounts or other assets for unpaid taxes?

Yes, under Florida law, the department may freeze and withdraw funds directly from a taxpayer's bank accounts or deposit sources to collect unpaid taxes. The taxpayer is notified before this action is taken and allowed to resolve the balance. Access to money may remain restricted until payment is received or a valid agreement is approved. Reviewing the account regularly helps avoid future issues.

How can a taxpayer request a payment plan with the department?

A taxpayer who cannot pay the total balance may request a payment plan by contacting the department using the telephone number or mailing address listed on the notice. The taxpayer must provide financial information, such as recent tax returns and proof of income, to create an agreement. Payments can be submitted by mail or through the department's secure site, identified by a locked padlock icon.

What if a taxpayer disagrees with the payment amount or balance listed on the notice?

If the taxpayer believes the balance or payment amount on the notice is incorrect, a written request for review must be submitted before the deadline. The department will review filed tax returns, payments, and account records. Any disputes should include supporting documentation, such as canceled checks or correspondence. Prompt submission enables the department to make a fair decision and resolve the issue promptly.

What happens if payment or communication with the department is delayed?

Failure to pay or respond by the due date may result in additional charges, interest, and enforcement actions. The department can garnish wages, seize property, or restrict access to bank accounts until the balance is resolved. Taxpayers should contact the department immediately if they are unable to pay to discuss possible options. Early communication often prevents more serious collection measures and maintains compliance.

How can businesses or individuals avoid future garnishment notices?

To avoid future enforcement events, taxpayers and businesses should ensure all tax returns are filed on time and payments are made in full. Maintaining compliance involves checking departmental mail or online updates, maintaining accurate records, and promptly addressing any notices received. Visiting the department's website for instructions and using secure online payment options, identified by a locked padlock icon, helps taxpayers remain in good standing.

Where can taxpayers find more information or contact the department?

Taxpayers can contact the Florida Department of Revenue by phone or mail for questions about a Florida DR-46 Intent to Garnish. The main telephone number is listed on the notice, and representatives are available Monday through Friday to assist. For forms, instructions, and updates, taxpayers may visit the department's official site. The page's last reviewed or updated date ensures that all information provided is current and accurate.

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