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
If a taxpayer receives this notice, they should respond to this notice immediately. A response includes:
Review our video playlist for more videos on paying a bill or notice, requesting an installment payment agreement, and more.
Review our information on collecting past due taxes, or call 1-877-252-4967 (toll-free) if there are additional questions.
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
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.
- 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.