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Stages of Collection

Past Due Tax Resolution Process: 1. If the Department of Revenue assesses additional tax owed or reduce credits, DOR sends a Portestable Notice (AR-80/NOPA) (Customer has 60 days to appeal or pay the balance). 2. If the balance goes unpaid or unacknowledged after 60 days, DOR sends a Demand for Payment (AR-40/DFP) (Customer has 20 days to pay the balance). 3. If the balance goes unpaid, DOR sends it to the County Clerk to create a tax warrant: Clerk Tax Warrant (WAR-C). 4. After warrant is registered with the County, DOR sends to either a Sheriff or to an outside collections agency for collection efforts (Sheriff Warrant (WAR-S) or Agency Warrant (WAR-A)).Notice of Proposed Assessment

The notice of proposed assessment lists the tax type, tax period, due date, and amount due. It includes an explanation for the billing with line-by-line clarification of the changes made (audit summary report).

Always review each element on the proposed assessment. The bill should be verified against your records, and any discrepancies should be addressed as quickly as possible by filing a protest or amended return with proper documentation to support your claim.

You may protest a proposed assessment from DOR by sending a written request and a copy of the bill to the department within 60 days of the bill date. The protest request letter should detail the reason for your protest and be signed and dated.

To protest only the penalty, use the same process. The protest letter should also include the specific reason for protesting the penalty only.

If you do not contact DOR by the due date, Indiana law requires DOR to advance the collection process. You waive your right to protest if you do not respond at the proposed assessment stage.

If you file a tax return and indicate a balance is owed, but don't pay that amount, the collection process will begin with a demand notice.

A Demand for Payment

If you file a tax return and indicate a balance is owed but don't pay that amount, DOR’s collection process begins with a demand for payment. In addition, if you do not timely protest a proposed assessment or your protest of a proposed assessment is denied in whole or in part, you will receive a demand for payment for the balance due.

This stage of the process allows only 20 days to respond. If you are unable to pay your tax bill, you must contact DOR before the due date to discuss payment arrangements to avoid moving to the next stage of collection. If you believe you have a significant reason why you cannot make the payment by the due date, please contact DOR before the due date to discuss possible remedies available to you. If you fail to pay or contact DOR by the due date, the liability becomes a collectable judgment against you.

If you want to make payment arrangements or need to address an issue related to the demand for payment, you can create or log in to your INTIME account to set up a payment plan or securely contact DOR to submit a question or get your issue resolved easily and efficiently. Once you are logged in, get started with INTIME messaging by selecting the “All Actions” tab followed by clicking on the “Messages” section.

Alternatively, you may call DOR Customer Service at 317-232-2240 or by writing to:

Payment Services
Attention: Correspondence
Indiana Department of Revenue
P.O. Box 595
Indianapolis, IN 46206-0595

Any correspondence with DOR must occur within the 20-day response period. The demand notice for payment does not give a customer the right to dispute the underlying tax liability. If you wish to dispute the tax liability on the demand notice for payment, you must pay the amount owed before the 20-day period expires and request a refund for the disputed amount.

In some situations, customers will be offered extended payment options over ninety (90) days. Paying one-third of the total amount due within the 20-day response period, will provide a new notice with a new 20-day due date. Paying one-half of that notice within the 20-day response period will provide another new notice to pay the balance in full within the 20-day time frame.

Tax Warrant for Collection of Tax

If your account reaches the warrant stage, you must pay the total amount due or accept the expense and consequences of the warrant. Although this is not a warrant for your arrest, the information will appear on a credit report or title search and becomes a lien on your property. The warrant is filed with all county clerk’s offices in which you have assets.

The warrant can go to either a sheriff or collection agency.

The sheriff will collect your total balance, which could include:
  • The tax due
  • Penalties assessed
  • Interest assessed
  • Clerk’s costs
  • Collection Fee
  • Agency fees
The sheriff may choose any of the following methods of collection:
  • Sell your property at an auction
  • Garnish your wages
  • Levy your bank account
The collection agency will collect your total balance and may choose the following methods of collection:
  • Garnish your wages
  • Levy your bank account

Any customer (business or individual) who has outstanding liabilities that have been filed as a lien in the county clerk’s office will have DOR tax liens placed on any and all vehicle titles, which are titled in his or her name and/or Social Security number or Federal Employer Identification number. For more information regarding a state tax lien on a vehicle title, you may contact the Compliance Check Unit at 317-232-5977.

The Department understands there may be times that a lien should be released due to special circumstances. If you believe you meet one of the following situations, please provide the information described below to the Titles and Clearances area for assistance. Email information to CollClearance@dor.in.gov or fax it to 317-615-2736.

  • Salvage situations
    • What is needed:
      • Insurance and/or salvage company letter on letterhead stating the vehicle is no longer operable and is being salvaged, and must include information regarding a settlement, claim and where the money is being distributed.
      • VIN# from vehicle
  • Deceased customer with a lien
    • What is needed:
      • Notarized affidavit of heirship & Letter of circumstance
      • VIN# from vehicle
      • Warrant information from public record
      • Copy of the Death Certificate for original owner
      • Copy of documentation showing the approximate value of the vehicle and a recent picture of the vehicle (example: Kelly Blue Book value)
      • Copy of state issued picture identification for individual making the request (copy of driver’s license)
  • Privately purchased vehicle, lien discovered afterwards
    • What is needed:
      • Copy of dated sales receipt showing purchase price
      • Notarized affidavit of purchase circumstance (where did you purchase the vehicle: from family or friend, classified ad, used car lot, sign on street, etc.).
      • VIN# from vehicle
      • Warrant information from public records
      • Copy of documentation showing the approximate value of the vehicle and a recent picture of the vehicle (example: Kelly Blue Book value)
      • Copy of state issued picture identification for individual making the request (copy of driver’s license)

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