Pennsylvania Taxing Information
If you maintain a tax deficiency, the state may issue a bank levy against you, taking money directly from your accounts up to the amount owed. While the bank is legally obligated to comply with a levy, there is a holding period in which you may be able to prevent further action or, in some cases, get your funds back, if you promptly seek professional assistance.
Deferred Payment Plan for Individuals
If you have a tax liability, you may avoid an enforced collection process either by paying it in full or by making installment payments on it through a Deferred Payment Plan. The state will want all means of making full payment to have been explored before such a plan will be considered. The state is obligated to protect its interests, so you will need to comply with any terms and conditions given to you.
Notice of Intent
The state will notify you prior to any enforced collection actions. If you receive and fail to address a Notice of Intent, a lien may be issued. This will enable further collection actions.
Offer in Compromise
If you cannot pay your liability in full, you may be able to request an Offer in Compromise. An Offer will only be considered if it illustrates doubt regarding the liability, or if it promotes tax administration.
Priority One: Stopping Aggressive Enforced Collections
Payment Plan for Businesses
As with individuals, a business may qualify for a Deferred Payment Plan. The state will try to exhaust all means of full collection prior to considering a plan. The state is obligated to protect its interests, so a business will need to comply with any terms and conditions given to it, including having all tax filings and financial statements in order.
Power of Attorney
If you so choose, you may authorize a qualified professional to represent you before the state. This requires that you complete and submit the appropriate documentation prior to any discussion of tax matters.
Tax Collection Agencies
The state may employ a liability collection company to collect delinquent taxes. It is important to verify the identity of such a company upon contact, prior to providing any personal information. If a collection agency is given your account, any fees associated with their involvement may be added to your total liability.
If you are assessed by the state as having a tax deficiency, a tax lien may be filed against your property. This secures the state’s interests and enables future collection actions. A lien can affect your ability to engage in property-related transactions, and can affect credit ratings due to its nature as a public record.
Wage Garnishments and Offsets
One form of enforced collection action the state may take to resolve liability is the garnishment of wages. A garnishment legally obligates your employer to withhold a portion of your paycheck and remit it to the state, until your liability is fully paid. Similarly, the state may offset tax refunds due to you and apply them to your liability. If you are or believe you may be subject to garnishment, it is recommended that you seek professional advice.