Wisconsin Act 28 (2009) authorizes the State Debt Collection (SDC) program. This act allows state agencies to partner with the Wisconsin Department of Revenue (DOR) in collection of debt. A debt means any amount owed to a government agency where the debt was reduced to a judgment or the debtor was notified and was given an opportunity to be heard with regard to the amount owed.
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 referring agency to resolve the obligation prior to referral. The referring 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.
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
- Records subpoena
Source: SDC Common Questions