Delinquent Tax

What is the delinquent account process?
Are there other costs that may be added to a tax liability after it becomes delinquent?
Where do I send a check or money order?
Can I use my credit card to make a payment on my delinquent tax liability?
How do I request an installment agreement to pay my taxes?
Can I use automatic withdrawals from my bank account to pay my delinquent taxes?
I received a Notice of Informal Hearing. What does it mean?
What is a wage certification?
What is a bank levy?
What is a tax warrant and when does the Department file a tax warrant?
What is a partial release of warrant?
Why does the credit bureau show a tax warrant is open and outstanding after my delinquent tax is paid?
How does a divorce decree affect my tax debt?
What address do we use for the Wisconsin Department of Revenue on our bankruptcy creditor mailing list?
Why is a collection agency contacting me?
What is the Delinquent Taxpayers Internet Posting?

What is the delinquent account process?

The Wisconsin Department of Revenue considers a tax "delinquent" when the due date of a specific Department assessment has passed and by statute any appeal rights have expired. Once this has occurred the assessment is certified as delinquent to the Department's Delinquent Tax System and is subject to collection action.

When an assessment is certified as delinquent, a delinquent collection fee is imposed on the account. The delinquent collection fee is equal to 6 1/2% of the balance outstanding or $35, whichever is greater. All delinquent liabilities are also subject to having a tax warrant filed. Tax warrants are liens against real or personal property; they also are public records and may affect a taxpayer's credit rating. In addition, if a taxpayer has a delinquent balance outstanding, future state and federal tax refunds are subject to offset the outstanding balance, regardless of any payment arrangement that may be in place.

To avoid enforced collection action, it is important that the taxpayer either pay the liability immediately or, if unable to pay in full, contact the Department of Revenue to request assistance in satisfying the outstanding liability. Options available for payment are:

Payment with a credit card
Installment agreement
Petition for compromise
Wage assignment

Enforced collection actions available to the Department include, but are not limited to:

Wage attachments
Levies
Seizures of property
Referrals to a private collection agency
License or permit revocations
Corporate responsible person assessments

Taxpayers may contact the Wisconsin Department of Revenue to request assistance in resolving their delinquent taxes in several ways:

By Mail:	In Person:
Wisconsin Department of Revenue P.O. Box 8901 Madison, WI 53708-8901	(or for Overnight Delivery) Wisconsin Department of Revenue 2135 Rimrock Road Madison, WI 53713
By E-mail:	By Telephone:
delnqtax@revenue.wi.gov	(608) 266-7879 (7:45 a.m. - 4:30 p.m. weekdays)

When making any type of inquiry related to a delinquent account please provide the following information:

The name and mailing address of the account holder.
A telephone number where you may be contacted between the hours of 7:45 a.m. and 4:30 p.m. CST.
A social security number (SSN), federal employer identification number (FEIN), or delinquent account number from a Department of Revenue notice.
Copies of all supporting documentation or records related to your inquiry.

When making tax payments, please make your check or money order payable to the "Wisconsin Department of Revenue" and include your identification number or a copy of a Department notice with your payment.

Are there other costs that may be added to a tax liability after it becomes delinquent?

A delinquent tax collection fee will be added to the total amount due when it becomes delinquent. The fee is the greater of 6 1/2% of the amount due or $35.

Interest at the rate of 18% per year is charged on the balance of tax due.

If you enter into an agreement with the Department to pay your delinquent taxes in installments, a $20 installment agreement fee will be charged.

All expenses associated with any legal collection actions that may be taken by the Department will be added to the amount due. Some examples of expenses are lien fees, garnishment fees, supplemental hearing fees, and other court costs.
Where do I send a check or money order?

If you have received a notice from the Department with an address indicated for mailing payments, please use that address along with the payment voucher if one has been provided. If you do not have a notice or payment voucher please mail your payment to:

Central Collection Section
Wisconsin Department of Revenue
P.O. Box 8901
Madison, WI 53708-8901

Be sure to include either your social security number or federal employer identification number on all payments. If you have additional questions regarding making payments, please call the Central Collection Section at (608) 266-7879.
Can I use my credit card to make a payment on my delinquent tax liability?

The Department of Revenue, in cooperation with Official Payments Corporation, allows you the option of making a full or partial payment on your delinquent tax liability by credit card. For more information, please go to our Pay by Credit Card page.
How do I request an installment agreement to pay my taxes?

If you cannot pay the full amount due with your tax return, file the completed Wisconsin tax form on time and pay as much as possible. You will receive a bill for the balance. By filing on time, you will avoid late charges and late filing negligence penalties.

You may contact the Department office closest to you or call the Madison office at (608) 266-7879 to request an installment agreement to pay your tax balance. A Revenue Agent will negotiate the payment terms with you. You will need to provide financial information, including your employer and financial institution. You can use our online Installment Agreement if you propose to pay your balance in full in one year or less. If your proposed payments will take longer than one year to pay the balance due, print the Form A-771 and mail it to the Department of Revenue. If you enter into an agreement with the Department to pay your delinquent taxes in installments, a $20 installment agreement fee will be charged.

As long as you honor the terms of the installment agreement (make installment payments and timely file and pay current liabilities), the Department will not take other collection action. However, the Department may file a delinquent tax warrant or intercept subsequent refunds even though you are honoring the terms of your agreement.

You should be aware that it is generally to your advantage to pay your liability in full rather than in installments. If your bill is not paid in full by the due date, you become liable for interest of 18% per year and a delinquent tax collection fee of the greater of $35 or 6 1/2% of the unpaid amount. Private loans generally offer more favorable terms.
Can I use automatic withdrawals from my bank account to pay my delinquent taxes?

Yes, you can have monthly payments automatically withdrawn from your checking or savings account. First you must request an installment agreement or have an existing installment agreement with the Department of Revenue. Once the department has approved your monthly installment agreement, you can choose to have your payment automatically withdrawn from your bank account and credited to your delinquent tax balance. In some situations the department will require that your installment agreement payments be made through EFT.

You may contact the Department office closest to you or call the Madison office at (608) 266-7879 to request an installment agreement to pay your tax balance. A Revenue Agent will negotiate the payment terms with you. You will need to provide financial information, including your employer and financial institution. You can use our online Installment Agreement if you propose to pay your balance in full in one year or less. If your proposed payments will take longer than one year to pay the balance due, print the Form A-771 and mail it to the Department of Revenue. If you enter into an agreement with the Department to pay your delinquent taxes in installments, a $20 installment agreement fee will be charged.

The Department implements automatic withdrawals on the 5th, 15th, and 25th days of the month. In order to participate in the Electronic Funds Transfer (EFT) program, your installment payment must be due once a month on either the 5th, 15th, or 25th day of the month. To request an automatic withdrawal, download Form A-771a to authorize EFT. Mail the completed form to the Central Collection Section, Wisconsin Department of Revenue, P.O. Box 8901, Madison, WI 53708-8901.

You can send the EFT authorization form with the installment agreement request or at any time while the agreement is in effect. If you have an existing agreement with a cycle and due date that does not meet the requirements for the EFT program, the cycle and due date will be changed when the Department receives your automatic withdrawal request.
I received a Notice of Informal Hearing. What does it mean?

A Notice of Informal Hearing is the initial formal collection notice issued when a taxpayer has not voluntarily made payment arrangements to satisfy a delinquent tax liability. It is sent by the Revenue Agent assigned to collect the outstanding balance. Its primary purpose is to initiate direct contact with the taxpayer to resolve the account and provide the taxpayer with a specific person or office to contact.

This hearing is not held in a court of law in front of a judge or other elected or appointed official. In most instances the only participants are the taxpayer and the Revenue Agent assigned to the account. It is intended to provide the taxpayer with a method to resolve the liability before enforced collection action is taken.
What is a wage certification?

It is an administrative action taken by the Department of Revenue to collect delinquent tax. When you have not taken steps to voluntarily resolve your debt, the Department of Revenue can require your employer to withhold a specified amount of your paycheck. This amount is not to exceed 25% of your gross pay. This action remains in place until your account has been paid in full.
- What is gross pay?
  Generally, gross pay is the amount you earn before any deductions, including state and federal withholding, social security, health benefits, and direct deposits. However, if child support payments are being withheld from your pay, or if another creditor has a garnishment action in place prior to our action, these amounts are not part of your gross pay.
  
  For example, if your gross pay is $1,000 and you have $250 taken for child support payments, $750 of your pay is used to determine the maximum amount that may be withheld. In this example, the maximum amount that the Department can require your employer to withhold is $187.50.
- What will happen if I terminate employment?
  Under Wisconsin law, once your employer becomes aware that you will leave, all amounts due to you, up to the total amount you owe, are to be withheld and paid to the Department of Revenue.
- Why does the notice to withhold show an amount so much larger than what I owe?
  This could happen for several reasons, but the usual reason is that we have projected the interest that will accrue during the time it will take to pay your account in full. We do monitor accounts and send amended notices to employers as needed.
- My spouse has a debt with the Department of Revenue, but I do not. Why is my pay being attached?
  Under Wisconsin marital property law, tax debt is considered a marital debt and your income a marital asset. This allows the Department of Revenue to collect this debt from your pay.
- I cannot afford to have this much taken out of my check. What can I do?
  You can contact the Revenue Agent whose name and telephone number is listed at the bottom of your copy of the notice. The agent will inform you of the financial information needed to determine if the amount or percentage can be reduced. See the Form A-772 for the type of information that you may need to provide.
What is a bank levy?

A bank levy is an administrative action taken by the Department of Revenue to collect delinquent tax. When a person has not taken steps to voluntarily resolve a tax debt, the Department of Revenue can send a notice to the person's financial institution to attach to all money in any accounts the person has access to. The Department of Revenue will be entitled to receive up to the amount indicated on the levy notice.
- How long will this levy stay in place?
  The Department's levies are a single action. They allow us to take only the amount in the accounts at the time the financial institution receives the levy. If the accounts do not have sufficient funds to pay the amount listed in full, the Department of Revenue would need to issue another levy to attach to amounts deposited after the bank received the first levy.
- Does this mean that if the levy does not pay my debt in full, I will be levied again?
  The Department of Revenue prefers to resolve delinquent accounts by voluntary actions. If your account still has a balance and you contact the agent listed on the levy, you will be able to discuss other options to resolve your account. These options can include a payment plan.
- How can you levy a joint account?
  If the person with the debt to the Department of Revenue has access to the account, all amounts in the account are generally available to the Department.
- The debt is based on estimates. I know the actual amount is less. Can anything be done?
  The Department of Revenue has a small window of time to make adjustments and amend the levy. If you are able to file acceptable returns and the bank has not yet transferred the funds to the Department of Revenue, we will make every effort to determine your actual liability and amend our levy if you owe less than the estimates. You will need to contact the Revenue Agent listed on your copy of the levy notice.
What is a tax warrant and when does the Department file a tax warrant?

A tax warrant acts as a lien against real property you own in the county in which it is filed, and against your personal property. The warrant is filed with the Clerk of Court and is a public record of the amount you owe. It could affect your ability to obtain credit or sell real estate. The cost of filing and satisfying the warrant will be added to the delinquent tax account at the time the warrant is filed. Currently the cost is $10.

The Department may file a tax warrant after a tax bill is not paid in full by the due date of the bill.
What is a partial release of warrant?

A partial release of warrant may be issued by the Department of Revenue when an asset is sold and it is clear that the proceeds from the sale are insufficient to satisfy prior judgments and our warrant. The partial release removes our warrant only from the specific piece of real estate or personal property that was sold. You may request a partial release of warrant from the nearest Department of Revenue office or by calling the Madison office at (608) 266-7879.
Why does the credit bureau show a tax warrant is open and outstanding after my delinquent tax is paid?

Within approximately 30 days of receipt of full payment, the Department of Revenue notifies the Clerk of Court to satisfy a delinquent tax warrant. The Department waits approximately 30 days to ensure personal checks are not returned from a financial institution for insufficient funds or dishonored for some other reason.

Credit bureaus regularly search public records to look for tax warrants and warrant satisfactions. Occasionally, warrant satisfactions are missed by the credit bureaus.

If your credit bureau report shows an open tax warrant in error, for a small fee you may obtain a copy of the warrant satisfaction directly from the Clerk of Court in the county where the warrant was filed. If necessary, the Department of Revenue will write the credit bureau a letter stating that the tax warrant was resolved.

If you have paid or satisfied a tax warrant in full and would like the Department to write a letter, you may call us at (608) 266-7879 or write to the Central Collection Section, P.O. Box 8901, Madison, WI 53708-8901. You will need to provide us with the name and address of the credit bureau, your name, social security number or business account number, tax warrant number, and the approximate date of payment.

Please wait at least 30 days after payment by personal or business check before requesting a letter of satisfaction from the Department. Upon request, we will prepare the satisfaction letter immediately if you submit proof your payment was in the form of guaranteed funds, such as a cashier's check or money order, or if you provide the Department with a copy of your cancelled check.
How does a divorce decree affect my tax debt?

If the debt owed to the Department of Revenue is from a joint income tax return, the Department of Revenue will honor the terms of the decree. However the Department of Revenue can only honor the terms of the decree after we have received a copy of the complete divorce decree.

Taxes other than income taxes, such as sales and withholding taxes, may be assessed against individuals. For these other taxes, a divorce decree can mandate which former spouse is responsible for the payment or how the payment must be shared between the former spouses. However, the court does not have the authority to change to whom the debt is assessed or to stop the Department of Revenue from collecting from the party assessed.
- What happens to payments applied to debts based on joint income tax returns before the Department of Revenue receives a copy of the decree?
  The Department of Revenue only becomes bound by the agreement upon receipt of a copy of the decree. Prior to that time, an amount due is considered owed to the Department of Revenue by both former spouses and no refunds or allocation of payments will be made.
- What happens to payments applied to debts based on other types of tax?
  As mentioned above the decree does not control the collection action by the Department of Revenue. If a former spouse is not complying with the order and the Department of Revenue collects from you, your remedies are against your former spouse.
- How do I notify the Department of Revenue of my divorce decree?
  If your account is delinquent and includes income tax, you should contact the Revenue Agent assigned to your account. The agent's name and number are listed on the delinquent statement you receive. If you do not have a statement you may contact the Central Collection Section at (608) 266-7879 to request who the assigned agent is.
What address do we use for the Wisconsin Department of Revenue on our bankruptcy creditor mailing list?

Special Procedures Unit
Wisconsin Department of Revenue
P.O. Box 8901
Madison, WI 53708-8901

Please use the address above to contact us on other bankruptcy related questions or call (608) 267-0833.
Why is a collection agency contacting me?

The Wisconsin Department of Revenue may refer your account for collection to a private collection agency.
- I would like to discuss the details regarding the liability that I owe the Wisconsin Department of Revenue. Who can I talk to about this?
  Since your account has now been assigned to a collection agency you will need to contact that agency directly. The Department refers accounts to one of the following collection agencies:
  
  West Asset Management
  Spotsylvania Avenue, Suite 200
  Fredericksburg, VA 22408
  1-800-854-9602
  
  NCO Financial Services
  P.O. Box 191208
  Mobile, AL 36619
  1-800-303-1410
  
  Diversified Collection Services (DCS)
  333 North Canyon Parkway, Suite 100
  Livermore, CA 94551-7661
  1-800-866-5317
- Can I have another person talk to the Collection Agency about my taxes?
  Yes. You can have another person contact the collection agency. However, before the collection agency can talk to anyone, other than you, you must complete a POWER OF ATTORNEY, (Form A-222), in duplicate. Send one copy to the collection agency and one to the Department of Revenue at the following address.
  
  Attention: Special Procedures
  Wisconsin Department of Revenue
  Mail Stop 3-252
  P.O. Box 8901
  Madison, WI 53708-8901
  (608) 267-0833
- Can I pay the Department directly, or do I need to pay through the collection agency?
  Payment is to be sent directly to the collection agency. Be sure to include your identification number on any payment you remit.
What is the Delinquent Taxpayers Internet Posting?
See the Delinquent Taxpayer page for more information.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Central Collection Section
P.O. Box 8901
Madison, WI 53708-8901
Phone: (608) 266-7879
Fax: (608) 261-8978
E-Mail Additional Questions

Last updated December 6, 2007

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FOR MORE INFORMATION PLEASE CONTACT: