Tax problems don’t always occur with Federal income taxes. If you’re having problems paying your Federal income taxes, you may also be having trouble with your state income taxes as well.
In Illinois, the procedure the Revenue Department uses to collect past due taxes is relatively simple.
The first thing the Illinois Department of Revenue will do if you do not pay your taxes on time is send you a bill. This bill will contain a detailed accounting of the taxes owed, any penalties and interest owed, and an explanation of why you owe the amount you are being billed. The Department of Revenue will only continue their collection activities if you don’t pay, just like any other collection agency, and in fact, your account may be turned over to a collection agency. Unlike the IRS, which stopped outsourcing collection activities, the Illinois Department of Revenue continues to outsource its collection activities.
If the Department of Revenue has to continue its collection activities against you, they have a variety of means at their disposal to collect on the debt. They are:
- Place a lien on your property.
- Levy or garnish your bank accounts and wages.
- Seizure of your real and personal property to collect the debt.
- Revoke any professional or business licenses.
- Revoke any sales tax permits or liquor licenses
- Contact the IRS and have your Federal income tax refund levied.
The best thing to do if you find yourself having problems with the IRS or State of Illinois tax debt, is to contact a reputable tax debt firm and get some help. An experienced and knowledgeable negotiator may be able to work out a payment plan that will help you get debt free.