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When does a tax amount due become "delinquent"?
The Wisconsin Department of Revenue considers a tax "delinquent" when the due date of an assessment passes, and after the expiration of any statutory appeal rights. Once delinquent, the debt is subject to collection action.
To avoid collection action, pay the liability immediately or, if unable to pay in full, contact us to request assistance in resolving your balance.
When contacting us about a delinquent account, have the following information available:
- Name and mailing address of the debtor
- Telephone number where you may be contacted from the hours of 7:45 a.m. to 4:30 p.m. CST
- Social security number (SSN), federal employer identification number (FEIN), or Wisconsin tax number
- Copies of all supporting documentation or records related to your inquiry
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Are there additional costs that may be added if a tax liability becomes delinquent?
We assess the following additional costs when a tax liability becomes delinquent:
- Delinquent tax collection fee of 6.5% of the amount due or $35, whichever is greater
- Interest monthly at the rate of 18% per year on the tax balance due
- A $20 payment plan fee if you enter into a payment plan with us to pay your delinquent taxes
- Expenses incurred with any legal collection actions taken by us. For example, lien filing fees, garnishment fees, supplemental hearing fees, and other court costs
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How do I pay?
Make a payment using any of the following options:
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How do I request a payment plan to pay my taxes?
- Request a payment plan by doing one of the following:
- Register for
My Tax Account.
- Add access to your accounts and request a payment plan by selecting "Manage My Collection"
- You can also track your collection balance
- Submit a completed
Payment Plan Request form by mail, fax or email to:
Wisconsin Department of Revenue
Compliance Bureau
PO Box 8901
Madison, WI 53708-8901
Phone: (608) 266-7879
Fax: (608) 224-5790
Email:
DORCompliance@wisconsin.gov
- Payment plan details
- If you enter into a payment plan with the department:
- You are charged a $20 fee
- You must file and pay all tax returns on time and make the expected payments. Meeting these terms avoids other collection actions.
- We continue to intercept any refunds or payments due to you from the federal government, Wisconsin, and other states
- We may issue a tax warrant to secure the debt
- Can't pay the full amount owed with your tax return?
- File your 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 avoid late filing fees and negligence penalties
- It is to your advantage to pay your liability in full rather than through a payment plan. If your bill is not paid in full by the due date, you become liable for interest of 18% per year and a delinquent collection fee of the greater of $35 or 6.5% of the unpaid amount. Private loans generally offer more favorable terms.
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What is a wage attachment?
If you do not take steps to voluntarily resolve your debt, we can require your employer to withhold from your paycheck. This amount cannot exceed 25% of your gross pay. This action remains in place until your account is paid in full.
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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.
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.
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What happens to my wage attachment if I terminate employment?
Under Wisconsin law, once your employer becomes aware that you are leaving, they must withhold all amounts due to you, up to the total amount you owe, and pay it to the department.
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My spouse has a debt with the Wisconsin Department of Revenue, but I do not. Why is money being withheld from my paycheck?
Under Wisconsin marital property law, tax debt is considered a marital debt and your income a marital asset. This allows us to collect this debt from your pay.
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I cannot afford to have this much taken out of my check. What can I do?
To consider a reduction of the current wage attachment, complete the Wage Attachment Reduction Request form by doing one of the following:
- Register for
My Tax Account.
- Add access to your accounts and request a reduction by selecting "Manage My Collection"
- You can also track your collection balance using May Tax Account
- Submit a completed Wage Attachment Review Request by mail, fax, or email to:
Wisconsin Department of Revenue
Compliance Bureau
PO Box 8901
Madison, WI 53708-8901
Phone: (608) 266-7879
Fax: (608) 224-5790
Email:
DORCompliance@wisconsin.gov
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What is a bank levy?
If you do not take steps to voluntarily resolve a tax debt, we can send a notice to your financial institution to attach or hold all funds you have access to. The funds the financial institution holds is the bank levy. We are entitled to receive up to the amount indicated on the levy notice.
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How long will this levy stay in place?
We may issue either a single action levy or a continuous levy.
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Single action levy – allows the department to take only the amount of funds you have access to at the time the financial institution receives the levy. If the funds you have access to are not sufficient to pay the amount listed in full, we must issue another levy to attach to amounts deposited after the bank received the first levy.
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Continuous levy – stays in place until the amount is paid in full. If the funds you have access to are not sufficient to pay the amount listed in full upon receipt of the continuous levy, your bank continues to hold and send us any deposited funds until the amount is paid in full.
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If the levy does not pay my debt in full, will I be levied again?
We prefer to resolve delinquent accounts by voluntary actions. If your delinquent account still has a balance and you contact us, you can discuss other options, including a payment plan, to resolve your delinquent account.
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What are protected funds, and can they be taken in a bank levy?
Protected funds include:
- Social Security and Supplemental Security Income issued by the Social Security Administration
- Veterans' benefits administered by the U.S. Department of Veterans Affairs
- Federal railroad retirement unemployment and sickness benefits administered by the Railroad Retirement Board
- Civil Service Retirement System and federal employee Retirement System benefits administered by the Office of Personnel Management
Protected funds are not subject to our levy. If funds are not protected, the financial institution must honor the levy.
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If a financial institution has any overdraft charges, or collateral outstanding, can the financial institution offset these before sending the levied funds to the department?
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Overdraft protection – financial institution can offset funds from one account to cover an overdraft in another account if the account is identified as security
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Secured loan – financial institution can offset a loan or overdraft charges if the account is documented as security. Example: If an individual has a savings account that is security for a loan, only the funds in excess of that security can be seized.
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Delinquent loan – financial institution can transfer funds from a bank account to cover delinquent loan payments if the account is identified as security, if there is a loan default, or the financial institution took appropriate action to satisfy the delinquent loan with the funds in the bank account
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Certificate of deposit – financial institution can offset funds held in a certificate of deposit used as collateral for a loan up to the amount of the loan. Funds in excess of the loan are subject to levy. This also applies to perfected security interest.
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Can the department levy a joint account?
Yes. If the debtor has access to the funds at the bank, all accessible funds are generally available to us.
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The debt is based on estimates. I know the actual amount is less. Can anything be done?
We have limited time but can adjust and amend a levy. If you file acceptable returns and the bank has not yet transferred the funds to us, we make an effort to determine your actual liability and amend the levy if you owe less than the estimates.
Contact us at the email or phone number listed on your copy of the levy notice.
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What is a tax warrant and when does the Wisconsin Department of Revenue file a tax warrant?
All delinquent debt is subject to having a tax warrant filed. 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 is added to the delinquent tax account at the time the warrant is filed. Currently the cost is $10.
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What is a partial release of warrant?
We may issue a partial release of warrant when an asset is sold and it is clear 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 office or by calling (608) 266-7879.
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Why does a 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, we notify the clerk of court to satisfy a delinquent tax warrant. We wait 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.
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How does a divorce decree affect my tax debt?
If the debt owed to the Wisconsin Department of Revenue is from a joint income tax return, we honor the terms of the decree. However, we can only honor the terms of the decree
after we receive 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 us from collecting from the party assessed.
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What happens to payments applied to debts based on joint income tax returns before the department receives a copy of the decree?
We are bound by the agreement upon receipt of a copy of the decree. Prior to that time, any amount due is considered owed to the department by both former spouses and no refunds or allocation of payments are made.
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What happens to payments applied to debts based on other types of tax?
The decree does not control the collection action by the department. If a former spouse is not complying with the order and we collect from you, your remedies are against your former spouse.
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How do I notify the department of my divorce decree?
Submit a copy of the decree by mail, fax, or email to the contact information listed at the bottom of this page.
Wisconsin Department of Revenue
Compliance Bureau
PO Box 8901
Madison, WI 53708-8901
Phone: (608) 266-7879
Fax: (608) 224-5790
Email:
DORCompliance@wisconsin.gov
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What Wisconsin Department of Revenue address should I use for my bankruptcy creditor mailing list?
Special Procedures Unit
Wisconsin Department of Revenue
PO Box 8901
Madison, WI 53708-8901
Note: Use the address above for contact regarding other bankruptcy related questions or call (608) 267-0833.
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What is the Delinquent Taxpayers Internet Posting?
See the
Delinquent Taxpayer for more information.