Notice of Collection – Amount Shown Due But Not Paid In Full

 

This notice is sent if a taxpayer's tax debt (tax due, penalties, and interest) is final and collectible, but has not been paid in full. The notice ID is N0002401 or N0002402.

About Your Notice

What should I do?
Why did I get this notice?
Where can I get more information?

Common Questions

What if I ignore this notice?
What if I already paid the total liability?
What are the penalties and interest?

What should I do?

If a taxpayer receives this notice, they should respond to this notice immediately. A response includes:

 

Why did I get this notice?

Review our video playlist for more videos on paying a bill or notice, requesting an installment payment agreement, and more.

 

Where can I get more information?

Review our information on collecting past due taxes, or call 1-877-252-4967 (toll-free) if there are additional questions.

 

What if I ignore this notice?

If a taxpayer does not respond immediately, the Department will begin forced collection actions, and the taxpayer may be charged a 20% collection assistance fee. Examples of forced collection actions could include:

  • Deducting 10% of the taxpayer's wages paid before deductions
  • Freezing funds in the taxpayer's bank account
  • Issuing certificates of tax liability (liens)
  • Seizing personal or business assets

 

What if I already paid the total liability?

If a taxpayer has already paid the amount shown due on their return, the taxpayer may have received this notice for one or more of the following reasons:

  • The payment may have been charged to the taxpayer's bank account, but not applied to their account with the Department.
    • Call 1-877-252-4967 for more information.
  • The taxpayer may still owe penalties, fees, and interest, even if the tax due has already been paid.
    • Any amount already paid is shown under the Less Paid section of the notice.
  • The taxpayer's total liability is for a previous period. The period is listed above the Tax column on the notice.

 

What are the penalties and interest?

Common penalties and interest on a Notice of Collection include:

  • Penalty for failure to pay the tax due
  • Penalty for failure to file a return
  • Interest on the underpayment of estimated income tax
  • Interest on unpaid taxes

Penalties and interest are based on the tax due shown on the Pay This Amount line of the taxpayer's return, or under the Tax heading on the notice. Review the Explanation section of the notice for more information about penalties and interest.

 

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