If you receive a bill, Notice of Assessment, which states the date of the assessment, the amount of tax assessed, and any accrued penalties as well as 30 days interest, you have 30 days to pay the debt. If you fail to pay, the Department of Revenue will issue a Demand for Payment. If the assessed tax is not appealed and no payment is mailed within 10 days, any one of the following actions may occur: the account may be subject to automated collection efforts; the account may be referred to the Department of Revenue's Collections Bureau; or the account may be referred to an outside collection agency. The Department can also file a notice of tax lien on a taxpayer's property, or it can levy an asset. A tax lien on a property impedes the sale or transfer of the property until the debt is settled and makes it virtually impossible for the buyer to obtain a mortgage. A levy withdraws money from a taxpayer's assets - for example, from a bank account or from wages or a salary - to satisfy the debt. In certain circumstances, the Department may let a taxpayer pay a liability through a short-term payment agreement that allows installment payments. If a taxpayer is entitled to a refund either from another type of tax or from a different tax period, that refund may be applied to the overall liability.
In some cases, usually after all else fails, the Department will be forced to seize assets, such as cars or businesses, in order to satisfy the debt. Most taxpayers will receive a certified letter warning them that their property will be seized if a settlement is not reached within 10 days. Sometimes, the Department of Revenue will not send a warning letter if there is a possibility that the taxpayer may hide or transfer an asset to avoid seizure. Seizures are generally a matter of public record, and the Department of Revenue routinely publicizes them.