What is the delinquent account process?
The Wisconsin Department of Workforce Development, Division of Unemployment Insurance considers a tax “delinquent” if the report and payment are not received by the assigned due date. Once this has occurred the assessment is subject to collection action. When a payment is delinquent, interest accrues on the unpaid tax at a rate of 1% per month. Penalties could also be assessed. All delinquent liabilities are subject to legal action. To avoid legal collection action, it is important that the debtor pay the liability immediately or arrange installment payments. Legal collection actions available to the Department include, but are not limited to: • Tax Warrants issued • Levies • Seizures of property, sale at sheriff’s auction • Denial of Lottery license • Individuals may be held liable for corporate liabilities.
The Wisconsin Department of Revenue considers a tax “delinquent” when the due date of a specific Department assessment has passed and by statute any appeal rights have expired. Once this has occurred the assessment is certified as delinquent to the Department’s Delinquent Tax System and is subject to collection action. When an assessment is certified as delinquent, a delinquent collection fee is imposed on the account. The delinquent collection fee is equal to 6 1/2% of the balance outstanding or $35, whichever is greater. All delinquent liabilities are also subject to having a tax warrant filed. Tax warrants are liens against real or personal property; they also are public records and may affect a taxpayer’s credit rating. In addition, if a taxpayer has a delinquent balance outstanding, future state and federal tax refunds are subject to offset the outstanding balance, regardless of any payment arrangement that may be in place. To avoid enforced collection action, it is important that
