Wisconsin Tax Relief: OIC, Payment Plans & Warrants

Owe Wisconsin state taxes or received a notice from the Wisconsin Department of Revenue (WIDOR)? Do not guess your next move. Wisconsin has an Offer in Compromise program, but strict rules, an 18% interest rate, and aggressive collection tools, including continuous wage attachment up to 25% and 20-year tax warrants. We review your Wisconsin tax balance, notice, deadline, and options so you know what to do next.

No guarantee of outcome. We will tell you if settlement is not realistic. A review by phone: (888) 260-9441
Reviewed by William McLee, Enrolled Agent
Last reviewed: June 27, 2026
Reviews content for accuracy against official sources. About our review process
Received a tax warrant, bank levy, wage attachment notice, refund offset, or assessment letter from Wisconsin?
These are not normal bills.
Deadlines and collection risk matter.
Speak with a tax relief specialist: (888) 260-9441

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Wisconsin Tax Relief Overview

Owing Wisconsin state taxes is different from owing the IRS. The Wisconsin Department of Revenue (WIDOR) has its own rules, deadlines, and collection tools — some of which are more aggressive than federal standards. Understanding your options starts with understanding how Wisconsin operates.

Critical Wisconsin Facts

  • High delinquent interest — 18% per year on delinquent taxes (reducible to 12% in some cases), one of the highest rates in the country.
  • Broad levy authority — no property is exempt from levy; WIDOR has broader collection authority than many states.
  • Long-lasting warrants — tax warrants last 20 years and are filed with the Clerk of Circuit Court as public records.
  • Continuous wage attachment — up to 25% of gross pay, continuous until the debt is paid in full.
  • Successor liability — business purchasers can be liable for the seller's unpaid sales tax.

Unlike many states, Wisconsin does have an Offer in Compromise program under Wis. Stat. secs. 71.92(3) and 73.13. This allows qualified taxpayers to settle tax debt for less than the full amount. But the program has strict requirements and a 3-year reopening period.

Depending on your situation, you may need one or more of the following:

  • An Offer in Compromise — to settle for less than the full amount.
  • A payment plan — to pay over time ($20 fee via Form A-771).
  • Interest reduction — from 18% to 12%.
  • An appeal — if you disagree with WIDOR's decision (60-day deadline).
  • Penalty relief — if penalties make the balance impossible to pay.
  • Tax warrant or levy resolution — if collection action has started.
  • Filing help — if you have unfiled Wisconsin tax returns.

If you run a business in Wisconsin and owe sales tax or withholding tax, the stakes are higher. Wisconsin has broad responsible person liability and successor liability rules that can create personal liability for business tax debt.

Wisconsin Tax Relief Options at a Glance

Option What It Does Best For Key Deadline / Cost
Offer in Compromise Settle tax debt for less than the full amount Cannot pay in full; limited income/assets 3-year reopening period; paid within 10 days if lump sum
Payment Plan Pay balance over time via Form A-771 Can afford monthly payments $20 fee; file and pay all future returns on time
Interest Reduction Reduce interest from 18% to 12% Can pay a reduced amount in full within 30 days Written request required; decision not appealable
Penalty Relief Request waiver of penalties for reasonable cause Penalties are large; had illness, disaster, or records loss Written request; burden on the taxpayer
Appeal Challenge the assessment at the Tax Appeals Commission You disagree with the amount owed and have proof 60 days from receipt of WIDOR decision; $25 fee
Tax Warrant Release Satisfy or partially release a tax warrant Warrant filed, but balance paid or compromise accepted ~30 days after full payment; 45 days after OIC
Levy/Wage Attachment Help Respond to bank levy or wage attachment Bank account frozen or wages being attached Act immediately

What Wisconsin Tax Notice Did You Receive?

Select your notice type for a quick explanation of what it means and your options.

Not Sure Where to Start?

We can review your Wisconsin tax notice, balance, interest rate, and deadlines — and explain your options in plain English. Call (888) 260-9441 or request a free review. We will tell you if the settlement is not realistic.

No pressure. No guarantee. Just a clear review of your options.

What the Wisconsin Department of Revenue Can Do to Collect

If you owe Wisconsin state taxes and do not address the balance, WIDOR has a broad range of collection tools. Under Wis. Stat. sec. 71.91, no property of any person is exempt from levy and sale for Wisconsin income/franchise tax collection — one of the broadest collection authorities in the country.

Charge 18% Interest
Wisconsin charges 18% per year (1.5% per month) on delinquent income and franchise taxes. This is among the highest state delinquent interest rates. Interest accrues until the balance is paid in full. A reduction to 12% may be requested.
Add Penalties
A 6.5% delinquent collection fee or $35 (whichever is greater) is assessed on delinquent accounts. A 25% negligence penalty applies to incomplete or incorrect returns. A 100% fraud penalty applies to intentional tax evasion.
Send Collection Notices
WIDOR sends a series of notices before taking enforced collection action. A tax becomes "delinquent" when the due date of an assessment passes, after the expiration of any statutory appeal rights. Ignoring these notices leads to more serious steps.
Offset Refunds
WIDOR intercepts Wisconsin state tax refunds and applies them to delinquent balances. Under Wis. Stat. sec. 71.93, WIDOR can also certify delinquent debts to the Department of Administration for setoff against amounts the state owes to vendors.
File a Tax Warrant
A tax warrant acts as a lien against real and personal property. Warrants are filed with the Clerk of Circuit Court as public records. For warrants entered after May 5, 2004, they last 20 years and are subject to renewal.
Levy Bank Accounts and Wages
WIDOR can issue continuous bank levies and continuous wage attachments up to 25% of gross pay. Under Wisconsin marital property law, a non-liable spouse's pay may also be subject to collection.
Financial Institution Record Matching
Under Wis. Stat. sec. 71.91(8), WIDOR operates a financial record matching program with financial institutions to locate assets of delinquent taxpayers.
Post Delinquent Taxpayer List
WIDOR posts a list of delinquent taxpayers whose seller's permits have been revoked on the Internet, updated quarterly.

Wisconsin Offer in Compromise (OIC)

Unlike many states, Wisconsin does have an Offer in Compromise program under Wis. Stat. secs. 71.92(3) and 73.13. This allows qualified taxpayers to settle tax debt for less than the full amount owed. But the program has strict requirements, and acceptance is not automatic.

Two OIC Forms

Form A-212 — for wage earners and self-employed individuals, including sole proprietors and disregarded single-member LLCs.

Form A-213 — for business entities such as corporations, partnerships, and LLCs.

How the Wisconsin OIC Works

The department cannot compromise non-tax debt certified to WIDOR for collection by state agencies and local governments. If accepted, the OIC must be paid in full within 10 days (lump sum) or according to an approved installment payment schedule. Collection actions initiated before receipt of an OIC are not ceased until the offer is accepted in writing, paid in full, and all terms are met. WIDOR will satisfy outstanding tax warrants within 45 days of full satisfaction of all compromise requirements, and the debtor's name is temporarily removed from the Delinquent Taxpayers Internet Posting within 5 days of receipt of the OIC application.

3-Year Reopening Period

If, within 3 years of the date of the compromise order or the date of final payment (whichever is later), WIDOR determines the taxpayer has sufficient income or property to pay the remainder, the matter may be reopened and full payment ordered.

Wisconsin OIC: Key Facts

Feature Details
Available Yes — Wis. Stat. secs. 71.92(3) and 73.13
Individual Form Form A-212 (wage earners, self-employed, sole proprietors, disregarded SMLLCs)
Business Form Form A-213 (corporations, partnerships, LLCs, etc.)
Excluded Debts Non-tax debt certified by state agencies/local governments
Payment Terms Full payment within 10 days (lump sum) or approved installment schedule
Collection Stoppage Collection actions continue until the offer is accepted in writing AND paid in full
Warrant Satisfaction Within 45 days of full satisfaction of the compromise terms
Reopening Period 3 years from the compromise order or the final payment (whichever is later)
Internet Posting Name removed within 5 days of OIC application receipt

Source: Form A-212 Offer in Compromise | Form A-213 Offer in Compromise (Business) | Wis. Stat. sec. 71.92(3). Approval is discretionary. No guarantee of acceptance.

See If a Wisconsin OIC Makes Sense

An Offer in Compromise may help if you cannot pay in full and have limited assets. The right move depends on your balance, income, assets, and whether collection has already started. We will tell you if an OIC is not realistic for your situation.

No guarantee of acceptance. WIDOR makes the final decision.

Wisconsin Tax Payment Plans

If you cannot pay your Wisconsin state tax balance in full, a payment plan (installment agreement) may be an option. Wisconsin offers payment plans for taxpayers unable to pay in full, administered through Form A-771.

Important: Refund Offsets Continue During Payment Plans

Even while your Wisconsin payment plan is active, WIDOR continues to intercept any refunds or payments due to you. A payment plan does not stop refund offsets. Additionally, WIDOR may file a tax warrant even if you have an active payment plan, and the warrant filing fee ($10) will be added to your account.

Key Conditions for Wisconsin Payment Plans

Requirement Details
Plan Fee $20 for all payment plans
Form Form A-771 Request a Payment Plan
How to Apply Online via My Tax Account, by phone at (608) 266-7879, or by submitting Form A-771
Current Filing Must file and pay all future tax returns on time
Refund Offset WIDOR continues to intercept refunds and payments due during the plan
Tax Warrant WIDOR may file a tax warrant even with an active payment plan; $10 filing fee added
Default Risk WIDOR may end the plan if you give wrong/false information or fail to follow the terms. Collection actions may then resume without further notice.
EFT Requirement WIDOR may require an electronic funds transfer for installment payments
Payment Application All payments are applied first to costs, penalties, and interest; the balance to the tax principal

Under Wis. Stat. sec. 71.92(2), collection proceedings are withheld during plan compliance, but failure to pay an installment allows the department to collect the unpaid portion by law.

Source: Form A-771 Request a Payment Plan. Approval is discretionary.

See If a Wisconsin Payment Plan Makes Sense

A Wisconsin payment plan may help if you cannot pay in full. The right move depends on your balance, notice status, income, assets, and whether collection has already started. We will tell you if a payment plan is your best option.

No guarantee of approval. WIDOR makes the final decision.

Wisconsin Interest Reduction: From 18% to 12%

Wisconsin's 18% delinquent interest rate is among the highest in the country. However, taxpayers may request a reduction from 18% to 12% under Wis. Stat. secs. 71.82(2)(b) and 77.62.

Requirements for Interest Reduction

Submit a written request explaining why the reduction is fair and equitable. Be current on all other returns and payments. Pay the reduced amount in full within 30 days if the request is accepted. The decision is not appealable.

Interest Reduction Is Not Automatic

The department has discretion to approve or deny interest reduction requests. Being current on all filings and demonstrating why the reduction is fair and equitable are critical. The 30-day full payment requirement means this option is best for taxpayers who can borrow or otherwise access funds to quickly pay the reduced balance.

Source: WIDOR Request Reduction of Interest

Wisconsin Penalty Relief

Penalty relief differs from a payment plan or an interest reduction. Penalty relief asks Wisconsin to reduce or remove penalties when allowed under state rules.

Types of Wisconsin Tax Penalties

Penalty Rate Applies To
Delinquent Collection Fee 6.5% or $35 (whichever is greater) All delinquent accounts
Negligence Penalty 25% Incomplete or incorrect returns; incomplete/incorrect deposit or withholding reports
Fraud Penalty 100% Incorrect report or failure to report with intent to evade tax
Late Filing — Withholding 5% per month (max 25%) Late withholding reports
Levy Non-Surrender Value of property + 18% interest + 50% penalty (if without reasonable cause) Failing to surrender property subject to levy

Penalty Relief for Reasonable Cause

Wisconsin allows the Secretary of Revenue to waive or abate penalties if the taxpayer demonstrates reasonable cause for their actions, acted in good faith, and made adequate disclosure of relevant facts. Under Wis. Stat. sec. 73.16(4), the department shall not impose negligence penalties unless it shows that the taxpayer's action or inaction was due to willful neglect rather than reasonable cause.

Penalty Relief vs. Payment Plan vs. OIC

These are separate processes. A payment plan does not automatically remove penalties. Penalty relief must be requested separately and approved based on reasonable cause. Even if penalties are waived, the underlying tax and interest must still be paid. An OIC may address the total liability, including penalties, but has different requirements.

Source: Wis. Stat. sec. 71.83(1) | Wisconsin Tax Bulletin 154

Wisconsin Tax Appeals

If you disagree with a tax assessment or decision from WIDOR, you have the right to appeal to the Wisconsin Tax Appeals Commission (TAC). The TAC is an independent agency entirely separate from WIDOR.

60-Day Deadline

An appeal must be filed within 60 days of your receipt of WIDOR's decision. A petition is timely filed if mailed by certified mail in a properly addressed envelope with postage prepaid by the 60th day. Missing this deadline can severely limit your ability to challenge the assessment.

About the Wisconsin Tax Appeals Commission

Location — 101 E. Wilson St., 5th Floor, Madison, WI 53703.

Phone — (608) 266-1391.

Filing fee — $25 per petition (no fee for earned income credit, homestead credit, and farmland preservation credit cases).

Copies required — an original plus four copies of the petition.

Jurisdiction — taxes and credits under Chapters 71 and 77, including income, franchise, gift, homestead credit, farmland preservation credit, withholding, sales and use, and excise tax matters.

Small Claims Procedure

A "small claims" case procedure is available where the total amount in controversy is less than $2,500. Small claims cases are decided by a single Commissioner within 2 weeks of the hearing and are not precedents.

Final Decision Timeline

The final decision or order of the Commission shall be issued within 90 days after the date on which the last document necessary to the decision is received or the date on which a hearing is closed, whichever is later, unless good cause is shown.

Frivolous Appeal Warning

If proceedings are instituted primarily for delay or the taxpayer's position is frivolous or groundless, the Commission may assess the taxpayer up to $1,000 in damages.

Stopping Interest During Appeal

A taxpayer may deposit the tax and interest being appealed with WIDOR to stop the accumulation of interest while the appeal is pending.

Source: Publication 507 How to Appeal to the Tax Appeals Commission | Wisconsin Tax Appeals Commission

Review My Wisconsin Notice

If you received a Wisconsin assessment or decision, review the 60-day appeal deadline before doing anything else. Missing an appeal deadline can limit your options.

This is not legal advice. Consult a qualified representative for your specific situation.

Wisconsin Tax Warrants

Wisconsin uses a "tax warrant" system rather than traditional tax liens. A tax warrant acts as a lien against real property owned in the county where filed, and against personal property. Warrants are filed with the Clerk of Circuit Court and are public records.

20-Year Duration

For tax warrants entered after May 5, 2004, liens continue for 20 years from the date the warrant is entered, subject to renewal or until the liability is satisfied, whichever comes first. This is significantly longer than many other states.

How Wisconsin Tax Warrants Work

Feature Details
Filing Filed with the Clerk of Circuit Court in any county where the taxpayer owns property
Filing Fee $10, added to the delinquent tax account
Public Record Yes — tax warrants are public records
Duration (post-May 5, 2004) 20 years from the date entered, subject to renewal
Lien Priority The perfected lien is effective at the time taxes are due or an assessment is made. WIDOR does NOT get priority over lienholders, mortgagees, purchasers for value, judgment creditors, and pledges whose interests were recorded before WIDOR's lien.
Satisfaction WIDOR notifies the Clerk of Court to satisfy the warrant within ~30 days of full payment
Partial Release WIDOR may issue a partial release when an asset is sold, and proceeds are insufficient to satisfy prior judgments and the tax warrant
Payment Application All payments are applied first to costs, penalties, and interest; the balance to the tax principal

Tax Warrants and Payment Plans

Important: WIDOR may file a tax warrant even if you have an active payment plan. The warrant filing fee will be added to your account. Having a payment plan does not prevent a warrant from being filed.

Tax Warrants and OIC

If your Offer in Compromise is accepted and all terms are satisfied, WIDOR will satisfy outstanding tax warrants within 45 days of full satisfaction of all compromise requirements — this is stated directly in the terms and conditions of Form A-212.

Source: WIDOR Delinquent Tax FAQ | Wis. Stat. sec. 71.91 | Form A-212

Wisconsin Bank Levy

WIDOR can levy funds from your bank account to satisfy a tax debt. Wisconsin allows either a one-time or a continuous bank levy — the latter remains in place until the amount is paid in full.

No Property Exempt from Levy

Under Wis. Stat. sec. 71.91(6)(f)6., no property of any person is exempt from levy and sale under Wisconsin income/franchise tax collection law. This is one of the broadest collection authorities in the country.

Key Facts About Wisconsin Bank Levies

Broad reach — WIDOR can levy upon any property, real or personal, tangible or intangible, after the tax becomes delinquent and 10 days pass without payment.

Continuous levies — levies on commissions, wages, or salaries are continuous; other levies may be continuous or noncontinuous.

Failure to surrender — if a person fails to surrender property subject to levy, they are liable for a sum equal to the value of the property not surrendered (up to the tax amount), plus 18% interest; a 50% penalty may also apply if surrendered without reasonable cause.

Protected Funds

The following protected funds are not subject to levy:

  • Social Security/SSI
  • Veterans' benefits
  • Federal railroad retirement benefits
  • Civil service/federal employee retirement benefits.

If your account has been levied, you need to act quickly. No guarantee of release.

Source: WIDOR Delinquent Tax FAQ — Bank Levy | Wis. Stat. sec. 71.91

Wisconsin Wage Attachment for Tax Debt

Wisconsin uses "wage attachment" (the statutory term) rather than "garnishment." WIDOR can require an employer to withhold up to 25% of the employee's gross pay.

Continuous Wage Attachment

A wage attachment remains in place until the account is paid in full. If the employee terminates employment, the employer must withhold all amounts due (up to the total owed) and pay it to the department. This is not a one-time deduction — it continues every pay period.

Key Facts About Wisconsin Wage Attachment

Feature Details
Maximum Withholding Up to 25% of gross pay per pay period
Duration Continuous until the account is paid in full
Termination Employer must withhold all amounts due (up to the total owed) upon termination
Employer Liability An employer who willfully fails to withhold or remit is liable for the total amount plus delinquent interest
Marital Property Under Wisconsin marital property law, tax debt is marital debt — a non-liable spouse's pay may be subject to collection

Wage Attachment vs. Bank Levy

Feature Wage Attachment Bank Levy
Target Your paycheck Your bank account
Amount Up to 25% of gross pay Full account balance (up to liability)
Duration Continuous each pay period until paid One-time or continuous until paid
Notice Required Employer receives notice; employee may not get advance warning Bank receives levy; account holder may not get advance warning

If you have received a wage attachment notice, do not ignore it. Once the attachment starts, the money is taken before you receive your paycheck.

Source: WIDOR Delinquent Tax FAQ — Wage Attachment | Wis. Stat. sec. 71.91(7)

Get Help With a Wisconsin Collection Notice

If Wisconsin has filed a tax warrant, frozen a bank account, started wage attachment, or sent a serious collection notice, waiting usually makes the problem worse — especially with 18% interest continuing to accrue. Get the notice reviewed before making random payments or ignoring the deadline.

No guarantee of outcome. We review your facts and explain your options. We will tell you if the settlement is not realistic. Call (888) 260-9441

Wisconsin Unfiled Tax Returns

If you have not filed Wisconsin tax returns for one or more years, that can block most resolution options. WIDOR may estimate your tax and issue assessments based on those estimates — sometimes higher than what you actually owe.

Filing accurate returns can sometimes reduce an incorrect balance. But do not rush or file bad returns. It's better to get the returns prepared correctly with the right income, deductions, and Wisconsin credits.

Why Filing Matters

Blocks eligibility — unfiled returns block payment plan eligibility.

Inflated estimates — WIDOR may issue substitute returns with higher tax than you actually owe.

Required for relief — penalty relief and OIC applications generally require all returns to be filed.

Required for interest reduction — interest reduction requests require being current on all returns.

Wisconsin Business, Sales Tax, and Payroll Tax Debt

Business tax debt is a higher risk than individual income tax debt. Sales tax and withholding tax are trust fund taxes — money you collected or withheld that belongs to the state. WIDOR takes these very seriously.

Responsible Person Warning: Personal Liability for Sales Tax

Under Wis. Stat. sec. 77.60(9), any person required to collect, account for, or pay sales/use tax who willfully fails to do so is personally liable if the principal is unable to pay. Personal liability survives dissolution of the business — this is stated explicitly in the statute itself, not merely inferred from how the provision is structured.

"Person" includes: an officer, employee, or other responsible person of a corporation or business association, or a member, employee, or other responsible person of a partnership, LLC, or sole proprietorship who is under a duty to perform the act.

Key points:

  • Broader liability since 1998 — liability was expanded to include persons who willfully fail to collect or account for taxes, not just those who willfully fail to pay.
  • No 4-year limit — the time for making determinations against responsible persons is not limited by the general 4-year statute of limitations.
  • Three-part test — case law requires (1) authority to pay, (2) knowledge of the tax problems, and (3) intentionally breaching the duty by directing funds to other creditors.

Responsible Person Warning: Personal Liability for Withholding Tax

Under Wis. Stat. sec. 71.83(1)(b)2., any person required to withhold, account for, or pay over income tax withholding who intentionally fails to do so is liable to a penalty equal to the total amount of the tax not withheld, plus interest and penalties. Personal liability survives dissolution — this too is explicit statutory language, not an inference.

Successor Liability: Business Purchaser Beware

Under Wis. Stat. sec. 77.52(18), the purchaser of a business or stock of goods is personally liable for the seller's unpaid sales tax if the purchaser fails to withhold sufficient purchase price to cover taxes due. Successor liability is limited to the tax amount (no penalties or interest).

Protect yourself: a purchaser may request a Sales and Use Tax Clearance Certificate from WIDOR before completing a business purchase. Under Wis. Admin. Code Tax 11.91(3)(c)-(d), WIDOR generally has up to 90 days from receiving a completed request to issue either a clearance certificate or a notice of potential successor liability; if the department fails to respond within that 90-day window, the purchaser is relieved of liability.

Wisconsin Sales Tax Debt

Unpaid sales tax can lead to license revocation, penalties, aggressive collection action, and personal liability for responsible persons. The rules of the responsible person are broad and can reach officers, employees, members, and others with control.

Wisconsin Payroll / Withholding Tax Debt

Withholding tax that is not remitted can trigger 100% personal liability under the section. 71.83(1)(b)2. for responsible persons. The time limits for assessment against responsible persons are not limited by the general statute if the business is assessed within the time period.

Source: Wis. Stat. sec. 77.60(9) | Wis. Stat. sec. 71.83(1)(b)2. | Wis. Admin. Code Tax 11.91(3)(c)-(d) | WIDOR Clearance Certificates FAQ

Review My Wisconsin Business Tax Debt

Sales tax and payroll withholding tax problems can create personal liability for business owners under Wisconsin law. If WIDOR believes tax was collected or withheld but not paid, do not treat it like ordinary income tax debt. Successor liability may also affect business buyers.

No guarantee of outcome. We review your facts and explain your options. We will tell you if the settlement is not realistic.

Wisconsin Tax Relief Tools & Calculators

Use our Wisconsin calculators to estimate penalties, interest, or wage attachment amounts. Then request a review if the numbers show the balance is growing or collection is already active.

Wisconsin Tax Penalty & Interest Calculator
Estimate how much 18% interest and penalties have added to your balance.
Wisconsin Interest Reduction Calculator
See how much you could save if your interest is reduced from 18% to 12%.
Wisconsin Wage Attachment Calculator
See how much could be taken from your paycheck. Wisconsin allows up to 25% of gross wages.
My Tax Account (Wisconsin)
Access your Wisconsin tax account online to view balances, make payments, and apply for payment plans.
My Tax Account →
Wisconsin Tax Forms
Find Wisconsin state tax forms from WIDOR, including OIC Forms A-212 and A-213.
WIDOR Forms →
Wisconsin Tax Appeals Commission
Access appeal forms and filing information from the Tax Appeals Commission.
Tax Appeals Commission →

Wisconsin Government Resources

These are the official Wisconsin sources for tax information, payment plans, appeals, and rules. Always check the official source for the most current information.

Not Sure What to Do With Your Wisconsin Tax Situation?

Select the card that matches your situation to jump to the relevant section.

Cannot Pay in Full — OIC May Be an Option
Wisconsin has an Offer in Compromise program (Forms A-212 and A-213). Review OIC requirements and the 3-year reopening period.
Jump to OIC Section →
Need a Payment Plan
Wisconsin offers payment plans with a $20 fee via Form A-771. Remember: tax warrants may still be filed and refunds offset during the plan.
Jump to Payment Plan Section →
18% Interest Is the Main Problem
You may qualify for an interest reduction from 18% to 12%. Requires being current on all filings and paying a reduced amount within 30 days.
Jump to Interest Reduction Section →
Penalties Are the Main Issue
Review penalty relief options. Wisconsin allows a waiver for reasonable cause, provided it is made in good faith and with adequate disclosure.
Jump to Penalty Relief Section →
Tax Warrant, Levy, or Wage Attachment Started
Act immediately. Wisconsin tax warrants last 20 years. Wage attachment is continuous at up to 25% of gross pay. No property is exempt from levy.
Need to Appeal a WIDOR Decision
You have 60 days to appeal to the Wisconsin Tax Appeals Commission. Missing this deadline can limit your options.
Jump to Appeals Section →
Business Sales or Payroll Tax Debt
Responsible persons face personal liability. Business buyers may face successor liability for unpaid sales tax. Get help before making random payments.
Jump to Business Tax Section →
Unfiled Tax Returns
Unfiled returns block most resolution options. File accurate returns before applying for a payment plan, OIC, or interest reduction.
Jump to Unfiled Returns Section →

Frequently Asked Questions About Wisconsin Tax Relief

Does Wisconsin have an offer-in-compromise program?

Yes. Wisconsin has an Offer in Compromise (OIC) program under Wis. Stat. secs. 71.92(3) and 73.13. Form A-212 is for wage earners and self-employed individuals (including sole proprietors and disregarded single-member LLCs). Form A-213 is for business entities. If accepted, the OIC must be paid in full within 10 days (lump sum) or in accordance with an approved installment schedule. The department cannot compromise non-tax debt certified to WIDOR by state agencies and local governments. Collection actions are not stopped until the offer is accepted in writing and paid in full. Wisconsin can reopen the matter within 3 years if the taxpayer's financial situation improves.

What is Wisconsin's interest rate on taxes?

Wisconsin charges 18% per year (1.5% per month) on delinquent income and franchise taxes under Wis. Stat. sec. 71.82(2)(a). This is among the highest state delinquent interest rates in the country. However, taxpayers may request a reduction from 18% to 12% by submitting a written request explaining why the reduction is fair and equitable, being current on all other returns and payments, and paying the reduced amount in full within 30 days if the request is accepted. The decision is not appealable.

Can Wisconsin garnish wages for taxes?

Yes. Wisconsin uses "wage attachment" (the statutory term) to collect delinquent taxes. WIDOR can require an employer to withhold up to 25% of the employee's gross pay. The wage attachment is continuous — it remains in place until the account is paid in full. If employment terminates, the employer must withhold all amounts due (up to the total owed) and remit to the department. Under Wisconsin marital property law, a non-liable spouse's pay may also be subject to collection. An employer who willfully fails to withhold or remit is liable for the total amount plus delinquent interest.

How long is a Wisconsin tax warrant?

For tax warrants entered after May 5, 2004, Wisconsin tax warrants continue for 20 years from the date the warrant is entered, subject to renewal, or until the tax liability is satisfied, whichever comes first. Tax warrants are filed with the Clerk of Circuit Court and are public records. The filing fee of $10 is added to the account. WIDOR notifies the Clerk of Court to satisfy the warrant within approximately 30 days of full payment.

Can I get a payment plan for Wisconsin state taxes?

Yes. Wisconsin offers installment agreements (payment plans) for taxpayers unable to pay in full. A $20 fee is charged for all payment plans via Form A-771. Payment plans can be requested online via My Tax Account, by phone at (608) 266-7879, or by submitting Form A-771. Under a payment plan, you must file and pay all future tax returns on time, and WIDOR continues to intercept any refunds or payments due. WIDOR may file a tax warrant even if you have an active payment plan. If you default, collection actions may resume without further notice.

Can Wisconsin levy a bank account for taxes?

Yes. WIDOR can issue either a one-time bank levy or a continuous bank levy. A continuous levy stays in place until the amount is paid in full. Under Wis. Stat. sec. 71.91(6)(f)6., no property of any person is exempt from levy and sale under Wisconsin income/franchise tax collection law. Protected funds not subject to levy include Social Security/SSI, veterans' benefits, federal railroad retirement benefits, and civil service/federal employee retirement benefits. If a person fails to surrender property subject to levy, they are liable for the value of the property plus 18% interest and potentially a 50% penalty.

Can Wisconsin waive penalties?

Yes. Wisconsin allows the Secretary of Revenue to waive or abate penalties if the taxpayer demonstrates reasonable cause, acted in good faith, and made adequate disclosure of relevant facts. A 25% negligence penalty applies to incomplete or incorrect returns unless due to good cause and not neglect. A 100% fraud penalty applies to intentional tax evasion. Under Wis. Stat. sec. 73.16(4), the department shall not impose negligence penalties unless it shows the taxpayer's action was due to willful neglect and not reasonable cause.

Can I appeal a Wisconsin tax assessment?

Yes. An appeal to the Wisconsin Tax Appeals Commission (TAC) must be filed within 60 days of your receipt of WIDOR's decision. The TAC is an independent agency entirely separate from WIDOR. A $25 filing fee is required (no fee for earned income credit, homestead credit, and farmland preservation credit cases). An original plus four copies of the petition must be filed. Small claims procedures are available for amounts under $2,500. A taxpayer may deposit the tax and interest being appealed to stop interest accumulation during the appeal.

Can I get Wisconsin's 18% interest rate reduced?

Yes. Taxpayers may request a reduction of interest from 18% to 12% for delinquent tax liabilities. The request must: (1) be in writing explaining why the reduction is fair and equitable, (2) confirm you are current on all other returns and payments, and (3) commit to paying the reduced amount in full within 30 days if accepted. The decision is not appealable. This option is best for taxpayers who can quickly access funds to pay the reduced balance.

Can Wisconsin reopen my Offer in Compromise later?

Yes. If, within 3 years of the date of the compromise order or the date of final payment (whichever is later), WIDOR determines you have sufficient income or property to pay the remainder, the matter may be reopened and full payment ordered. This is an important risk to understand before accepting an OIC. Make sure your financial disclosure is accurate and complete.

What if my Wisconsin tax debt is from sales tax or payroll withholding?

Sales tax and payroll withholding debt are treated very seriously by Wisconsin. Under Wis. Stat. sec. 77.60(9), responsible persons who willfully fail to collect, account for, or pay sales/use tax are personally liable — and this liability survives dissolution of the business. Under Wis. Stat. sec. 71.83(1)(b)2., responsible persons who intentionally fail to pay over withholding tax are liable for 100% of the unpaid amount. Additionally, business purchasers may be liable for the seller's unpaid sales tax under successor liability rules (Wis. Stat. sec. 77.52(18)). Request a Clearance Certificate before buying a business.

Can I be liable for sales tax owed by a business I purchased?

Yes. Under Wis. Stat. sec. 77.52(18), the purchaser of a business or stock of goods is personally liable for the seller's unpaid sales tax if the purchaser fails to withhold sufficient purchase price to cover taxes due. This "successor liability" is limited to the tax amount (no penalties or interest). To protect yourself, request a Sales and Use Tax Clearance Certificate from WIDOR before completing a business purchase. WIDOR generally has up to 90 days to respond.

Does a Wisconsin payment plan stop collection action?

No. A payment plan does not prevent WIDOR from filing tax warrants, and state refunds may still be offset and applied to your balance. Collection proceedings are withheld during compliance with the plan, but if you default, collection action may resume immediately without further notice. The plan also does not stop interest from accruing at 18% on the unpaid balance.

What if I have unfiled Wisconsin tax returns?

Unfiled returns can block most resolution options. WIDOR may estimate your tax and issue assessments that are higher than what you actually owe. Filing accurate returns can sometimes reduce an incorrect balance. Do not rush or file bad returns — get them prepared correctly. All returns must be filed before applying for a payment plan, Offer in Compromise, or interest reduction.

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Sources Used

These are the official Wisconsin government sources used for this page. Always check the current official source for the most up-to-date information.

Disclaimer: This page provides general information about Wisconsin state tax collection procedures and is not legal advice. Tax laws and agency procedures change. Always consult the official Wisconsin Department of Revenue website or a qualified tax professional for advice specific to your situation. No guarantee of any particular outcome is expressed or implied. Approval for Offers in Compromise, payment plans, interest reduction, penalty relief, and other resolutions is discretionary.