1. State Debt Collection Overview - What is State Debt Collection?
2. Collection Process - What can I expect in the collection process?
3. Payment - How can I make a payment?
4. Collection Authorities - How does DOR collect?

1. What is State Debt Collection?

   Wisconsin Act 28 (2009) authorizes the State Debt Collection (SDC) program. This act allows state agencies to partner with the Department of Revenue (DOR) in collection of debt. A debt means any amount owed to a government agency where the debt has been reduced to a judgment or the debtor has been notified and has been given an opportunity to be heard with regard to the amount owed.

2. What can I expect in the collection process?

   The referring agency sends a Notice of Referral to you at least 30 days prior to referring a debt to DOR. The notice provides an opportunity for you to contact the agency to resolve the obligation prior to referral. The agency does not confirm receipt of this notice.

   If you do not contact the agency, the debt is referred. DOR creates a collection case for the debt and adds a collection fee. The fee is 15% of the amount referred (minimum $35). A Notice of Referred Debt is sent with contact information and a payment voucher. DOR does not confirm receipt of this notice. Once referred, the debt is considered final, and DOR is unable to review disputes or appeals of the debt. All payments must be made directly to DOR.

   If an agency has suspended a license or privilege, they will often require payment in full before releasing the suspension. The release of a suspension is reviewed and processed by the referring agency, not DOR.

3. How can I make a payment?

   Payments can be made online at My Tax Account by selecting Pay Online (under Individuals), then Pay Non-Tax Debt (Statewide Debt Collection).

   To use this payment application, you must have your 15-digit account number and period information located on either a Notice of Referred Debt or a Statement of Account. This application will display one or more debts owed to one agency. You may choose to make payment in full or a partial payment. If you owe debts to more than one agency, you must repeat the payment request for each agency. Payments made in this application will require you to enter your routing and account number from your financial institution.

   If you are unable to pay online, you may mail your payment using the voucher provided or at an office location.

   If you are unable to pay the balance in full, you may request a payment plan.

4. How does DOR collect?

   DOR is authorized to use the same collection authorities used to collect delinquent taxes. These measures include, but are not limited to:

   • Payment plans
   • Refund intercepts
   • Wage attachment orders
   • Bank levies
   • Records subpoena

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of October 19, 2023: secs. 71.01, 71.80, 71.91, 71.92, 71.93, 73.03, 73.0301, and 77.62, Wis. Stats., and sec. Tax 1.12, Wis. Adm. Code.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100040

October 19, 2023