If the Department has previously sent the taxpayer a Notice of Collection informing them that the total unpaid tax is final and collectible, but the taxpayer does not pay the full total tax liability, then this notice is sent to inform the taxpayer that the Department has taken a forced collection action.
About Your Notice
Watch a video to learn more about why the taxpayer received this notice.
Review our Paying and Responding to Your Notice playlist for more videos about paying a bill or notice, requesting an installment payment agreement, also known as a payment plan, and more.
There are three ways the taxpayer can respond to a garnishment:
- Pay the full total tax liability. The taxpayer can pay the amount shown due on the taxpayer's notice now to avoid accruing additional interest. The Department will send a garnishment release letter to the taxpayer's employer once the tax liability is paid in full.
- If the taxpayer has a bank garnishment, do not use the account that is being garnished. The taxpayer must pay using a different account.
- Set up an Installment Payment Agreement. The Department may consider releasing a garnishment if all four of the following requirements are met:
- The garnishment is attached to wages and/or salaries.
- The taxpayer has not defaulted a previous Installment Agreement on the same tax period(s).
- The taxpayer's requested Installment Payment Agreement amount is greater than or equal to 10 percent of your gross wages and/or salaries.
- A payment greater than or equal to the first payment is paid as a down payment.
- Leave the garnishment in effect. The taxpayer does not have to take any action if they cannot pay in full or set up an Installment Payment Agreement.
For more information, review the Garnishment FAQs. If there are additional questions, call 1-877-252-3252.
[video: Understanding a Garnishment Notice]
If a taxpayer receives a bank garnishment, then the taxpayer's bank or financial institution has frozen the funds in their account. They may not be able to access their account during this time.
The taxpayer's financial institution will withdraw funds up to the amount shown due on their notice. The taxpayer should contact their financial institution if they have questions about their account.
A taxpayer may have already received a garnishment this year, but they can still take steps to avoid receiving one next year.
Start now by using the Income Tax Estimator to estimate what a taxpayer may owe.
If they have a balance due, then they can adjust their NC-4 to increase the amount of tax withheld from each paycheck, or they can increase the amount of their quarterly estimated income tax payments.
If a taxpayer has a balance due the next time they file, they can file early and schedule payments up until the due date.