State Debt Collection Initiative (SDC) - Debt Referred to Department of Revenue (DOR) for Collection

1. Collection Authorities - How does DOR collect?
   
   
2. Collection Process - What can I expect in the collection process?
   
   
3. Payment - How can I make a payment to restore privileges that have been suspended?
   
   
4. Bankruptcy - Who do I notify if I have filed bankruptcy?
   
   

1. 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
     
     
2. What can I expect in the collection process?

   The referring agency is required to send a Notice of Referral to you at least 30 days prior to sending a debt to DOR. The notice provides an opportunity for you to contact the agency to resolve the obligation prior to referral.

   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.

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

3. How can I make a payment to restore privileges that have been suspended?

   Once the debt is referred to DOR, all payments must be made to DOR. We will apply payments to debts referred by agencies in the order the debts were received, first to debts referred by state agencies and then to debts referred by county and municipal governments.

   Reinstatement of a license or privilege: If an agency has suspended a license or privilege until the debt is paid in full, payment can be made in person at an office Location or you can pay online with My Tax Account under "Quick-Links" and "Pay Non-Tax Debt".

   To use this payment application, you must have the 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.

   The payment application is specific to debts owed through the State Debt Collection Initiative. Payments to DOR tax obligations using this application will not be accepted.

4. Who do I notify if I have filed bankruptcy?

   Notify DOR and the referring agency in the event that bankruptcy is filed. DOR will stop collection actions until the bankruptcy has been discharged. If the debt survives bankruptcy, DOR will resume collections.

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of October 12, 2020: Sections 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 October 12, 2020, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to October 12, 2020, that is contrary to the information in this document is superseded by this document, pursuant 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 12, 2020