Check For Active Tax Warrants
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Check For Active Tax Warrants 🔷
State Tax Warrants Explained
A tax warrant is no small legal matter, it issued for failure to pay your taxes and can result in significant legal complications. If you owe back taxes and the debt goes unresolved for long enough, the government can enforce the payment of your back taxes owed by filing a warrant to officially secure funds from your assets and bank accounts.
While getting a tax warrant be quite overwhelming, it doesn’t mean you’re out of options. In many cases, tax warrants can be resolved through payment plans, negotiated settlements, or professional assistance. This guide will cover what a tax warrant is, why it’s issued, how it’s enforced, and what you should do if one is issued against you.
What Is a Tax Warrant?
A tax warrant is a financial legal claim issued by a specific government agency, such as a state’s department of revenue, IRS, local tax collector, stating that a person or a business owes back taxes. These are not usually issued by the IRS, only state or county specific agencies. The IRS will use legal tools such as a lien or levy.
As a whole, a these financial debt driven warrants are quite similar to a judgment or a formal public filing that gives the government full authority to collect the debts they’re owed. Depending on your state of residence, and the type of tax that is owed, the warrant may be filed with the county clerk, recorder, or another respective public records offices.
These court-ordered tax collection methods are issued for unpaid tax obligations such as the following:
State income taxes
Business payroll taxes
Sales and use taxes
Property taxes
Certain municipal or local taxes
Other government assessments and fees tied to taxation
Important note: These are civil violations, not criminal violations. The large majority of tax warrants only use civil enforcement tools, and not criminal charges to enforce them. Although, criminal charges and penalties can be issued in rare situations involving fraud, or tax evasion.
How Are Tax Warrants Enforced
Once the warrant is issued and filed for a person’s overdue taxes, the government can begin using stronger collection methods to recover the money owed to them. The specific enforcement process can varies by state and county, but the most common outcomes include the following:
Tax Liens on Property
The most common collection method results in a tax lien, which is a claim against your property or assets. This lien is usually attached to:
Your home, if you own it
Land deeds that are in your name
Vehicles that you own, not lease
Business properties and equipment
Future proceeds from the sale of your property
A lien can make it difficult to sell or refinance any personal or business property because the government usually needs be paid before the transaction can close. Banks will consider this a high-risk situation and will typically not allow financing or re-financing for such property.
Bank Account Levies
The majority of states and respective tax authorities can issue a levy against someone’s bank account. Once this takes effect, the government takes funds directly from a bank account to satisfy the unpaid debt owed to them.
Garnishing Wages
Another instrument that tax agencies can use to collect taxes is by garnishing a person’s wages. This means that a portion of that person’s paycheck is directly sent to the respective government agency until the debt is paid.
Seizing of Assets
In the most severe cases of tax delinquency, enforcement agencies can seize a person’s physical and financial assets, such as:
Business inventory
Business equipment
High-value assets that can be auctioned
This is an extreme situation but does tend to occur when the debt is high and unresolved. Once the respective tax collection agency has exhausted all other collection methods, they will take to these measures.
Taking Tax Refunds
The IRS and State may allow the government to intercept tax refunds before they are sent out to reclaim unpaid debts. However, it depends on the specific agency and the debt type for when these are intercepted.
Damage to Credit or Financial Standing
While tax laws can vary from state to state, when a lien is placed upon a person’s financial assets, it can create major financial disruptions including:
Difficulty qualifying for new loans
Banks denying business financing
Issues with renting or leasing property or vehicles
Complications with professional licensing for some industries
What to Do If You Have a Tax Warrant
If you find out a that a tax court-ordered collection has been issued against you, you’ll want to act swiftly. Waiting never helps the situation as it will likely become more expensive and harder to fix.
1). Confirm the Details Immediately
Start by verifying the tax delinquency amount, and the agency involved in collection. Determine the tax reporting periods, and the respective delinquencies and penalties assessed. You may also want to confirm if there is an active lien against you by contacting your state department of revenue, franchise tax board, or the IRS. The majority of time, you’ll receive a notice in the mail but it’s also a good idea to do your own research as some notices can slip through the cracks.
2). Don’t Ignore Any Legal Notices
The majority of time, you’ll receive a notice in the mail but it’s also a good idea to do your own research as some notices can slip through the cracks. Tax enforcement agencies will usually escalate tax delinquencies when notices are ignored. Even if you can’t pay immediately, responding ASAP may help you qualify for more flexible payment options.
3). Consider Paying You Debt in Full
If you’re able to pay the balance of your overdue taxes in full, this will usually the fastest way to stop payment enforcement actions and you can begin the process of clearing the warrant.
Then once you’ve paid in full, make sure to get written confirmation so that any claim against you can be released.
4). Apply for a Payment Plan
Many state tax agencies offer payment installment options. A payment plan will usually stop any payment enforcement as long as you continue to pay according to the plan. It will also release you from additional penalties or liens that may be considered. However, it’s important that you continue the payment plan as agreed upon until the debt is satisfied or you may still encounter additional penalties or fines.
5). Request a Settlement or Offer
In some situations, you may be able to negotiate a reduced amount based on certain factors such as: financial hardship, income limitations, medical issues, or any other situations that may limit your ability to pay. Not all agencies offer formal settlement programs, but it’s always a good idea to ask what is available to you for hardship options.
6). Work With a Tax Professional
If the amount of your tax debt is significant, or the situation is complicated, consider speaking with a tax attorney, a CPA, or and enrolled tax agent. They may be able to help you reduce penalties, avoid any potential mistakes, and offer guidance to the best strategy for your situation.
7). Ask How to Release or Remove the Warrant
Even after paying or resolving your debt, the warrant may not disappear on it’s own. You may need to file a petition to have it removed. This will require you to file the necessary paperwork confirming your debt has been satisfied. This is important for credit, lending, and public record cleanup.
What If I Ignore a Tax Warrant?
Ignoring a any type warrant is dangerous and will create escalating consequences, including:
1). Increased penalties, fines, and interest
2). Bank account levies or garnished wages
3). Property liens that limit refinancing or sales
4). Seizure of your assets or property
5). Long-term financial disruptions
Even if you don’t have the ability to pay right away, contacting the respective tax authority and creating a payment plan is always better than waiting or doing nothing at all.
Can You Prevent a Tax Warrant?
Absolutely, in most cases if you act early you can prevent a lien or warrant against you and your assets. Here are some important considerations when you have unpaid tax debts:
1). Make sure to file your taxes on time, even if you can’t pay on time.
2). Respond to any state or federal tax notices quickly
3). Set up a payment plan before collections ensue
4). Keep documentation of all of your payments and correspondence to all agencies
5). Work with a tax professional if the balance is growing
Tax Warrants - Frequently Asked Questions
Why are tax warrants issued?
These are issued as a legal claim to collect money owed by you to the state or federal government. It essentially gives the government stronger power to collect the debt, and can result in a judgment or lien against your financial accounts or property if it’s ignored.
Can I be arrested for a state issued tax warrant?
It’s very unlikely you’ll be arrested unless you’ve engaged in fraud or some type of criminal activity. Most tax warrants are civil violations, however, ignoring tax debt can still lead to aggressive collection measures including liens against your property or bank accounts.
Are warrants issued for unpaid taxes public record?
Yes, the majority of tax related warrants, judgments, and liens are considered public records that anyone can access online without needing permission. The only exception to this are records that have been sealed by the courts.
How can I find out if I have a tax warrant?
You can check with your state’s Department of Revenue, or equivalent agency, or the county clerk or recorder’s office. A third option is to use a third-party background check service or public records website which will give you an abstract of all your public records.
How long do a tax warrant last for?
They stay in effect until the overdue taxes are paid, or if there a settlement with the state or federal government. The courts will then either quash or remove the warrant, otherwise it stays in effect indefinitely.
What is the difference between a tax lien and warrant?
A warrant is the official legal action that supports the collection of overdue taxes. A tax lien on the other hand, is the claim against property or assets that may result from the warrant, which is used as a legal instrument for collection.
Can my wages be garnished for overdue taxes?
Yes, while this is an extreme case, your wages can be garnished if your taxes are unpaid for several years. State tax agencies do garnish wages to collect delinquent tax debt after several notices.
If I don’t pay my taxes, can the government take money from my bank account?
Yes, this is possible to have your bank account levied for unpaid taxes. Some tax authorities have the authority to levy bank accounts, which may freeze or seize funds to satisfy your unpaid taxes.
Can the government take my property for unpaid taxes?
Yes, in the most serious of cases the government can seize your property to reclaim the money owed to them. Enforcement may include liens against real estate or seizure of certain assets, especially when large unpaid tax balances.