What is a Tax Warrant?

What is a Tax Warrant?

A tax warrant is very much like a Tax Lien, it is a request to levy upon and/or sell any personal property owned by a taxpayer to satisfy a tax debt. It is issued to a taxpayer that has failed to pay tax, penalty, interest, and fees that the state taxing authority has assessed. The warrant is typically served by the Sheriff of the county where the taxpayer's property or business is located and is often the equivalent of a civil judgment. When a tax warrant is filed with the Superior Court in the county where the taxpayer owns real or personal property, it creates a lien. The following states issue tax warrants (New York, Indiana, Oklahoma, Michigan, Wisconsin, Washington, Florida, Texas, and Kansas. The remainder of the state issue a Tax Lien.

How does the process work?

In states that issue Tax Warrants, failure to timely resolve your tax debt, will result in your past due tax debt becoming fixed and final. The State Taxing Authority may file a tax warrant against you. Before they file a tax warrant, they will send you notice(s) of the debt and allow you to resolve it.

When the state files a tax warrant, they will send you a copy of the warrant to the taxpayer. If the taxpayer fails to resolve your warranted balance, the state will proceed with further collection action. Although a tax warrant will not likely result in your arrest, it will likely appear on your credit report and title searches, in local newspapers and business journals, and perhaps on the tax authority's website. All of this is in addition to potential property loss as a result of asset sales. Additional collections actions may also include wages garnished, property seizure and sale at public auction, and having your bank accounts levied. Interest, penalties, and collection costs are also added to the original tax debt. To avoid a tax warrant, proactively contact the state and resolve any outstanding tax balances as soon as possible. If a tax warrant exists, the state will remove the lien once the tax debt is paid in full.

Can I go to jail for a Tax Warrant?

Ttax fraud and tax evasion are most common tax crimes. A Tax Warrant does not result in an arrest warrant. It is, however, a wake-up call! You can only go to jail for tax law violations in which criminal charges are filed against you, you are prosecuted and sentenced in a criminal tax proceeding.

What can be seized?

Any assets of the taxpayer owns are potential subject to seizure. This includes any real property (land and any buildings attached) or personal property (anything considered personal effects or movable property, i.e., not real property), are subject to seizure.

What happens if the balance is not satisfied with a tax warrant asset sale?

The balance will remain due, and the State Taxing Authority may issue another warrant or take other collection actions )include wages garnished, property seizure and sale at public auction, and having your bank accounts levied) to collect the taxes owed.

If I receive a tax warrant, whom should I contact?

Review the warrant to determine who served the warrant.

If the State Department of Revenue personnel served the tax warrant, contact the State's Collection Division. Before you make that phone call. Ask yourself if you are prepared for their questions. You will likely have to disclose all of your financial information. After that phone call, the state will have every possible way to collect from you. Understand that you have the right to seek tax representation and should consider doing so.

Track Your Refund

Refer a Friend

Track Your Refund

Newsletter

Client Login

Refer a Friend