DOR Tax Warrant and Collections Process Information

Pursuant to IC § 6-8.1-8-2, the Department must issue a demand notice for payment of a tax plus any penalty and interest if a taxpayer files a return without including full payment. A demand notice may also be issued after the Department rules on a protest and determines that a taxpayer still owes tax. IC § 6-8.1-8-2(a).

A demand notice will include the following information:

1. That the taxpayer has twenty (20) days from the mailing date of the notice to either pay the amount due or show reasonable cause for not paying.
2. The statutory authority for issuing the warrant.
3. The earliest date on which the tax warrant may be filed and recorded.
4. The statutory authority for the Department to levy a person’s property held in a financial institution (i.e., a bank or credit union).
5. The remedies available to the taxpayer to prevent filing and recording the judgment.

Id.

If a taxpayer does not pay the amount due or show reasonable cause for not paying within twenty (20) days, the Department may issue a tax warrant. IC § 6-8.1-8-2(b). The amount of the tax warrant will include the base tax due, interest, penalties, collection fee, sheriff’s costs, clerk’s costs, and other fees established under Indiana Code. Id. The Department also adds a collection fee of ten (10) percent. Id.

Once the warrant is issued and at least twenty (20) days have passed from the day the demand notice was mailed to the taxpayer, the Department may file the warrant with the circuit court clerk. IC § 6-8.1-8-2(c). The warrant can be filed in any county in which the Taxpayer owns property. Id. If the Department cannot determine where a taxpayer owns property, then the warrant can be filed with the circuit court clerk of Marion County, Indiana (i.e., filed in Indianapolis, Indiana where the Department’s main office is physically is located). Id.

When the circuit court clerk records the warrant, the judgment record will include 1) name of the person owing tax; 2) amount of tax, interest, penalties, collection fee, sheriff’s costs, clerk’s costs, and fees owed; and 3) the date the warrant was filed with the clerk. IC § 6-8.1-8-2(d). When the warrant is recorded, the tax warrant becomes a judgment against the taxpayer, and a lien is created for the State against any real or personal property the person owns in the county. IC § 6-8.1-8-2(e).

Generally, a warrant is valid for ten (10) years from the date the judgment is filed and can be renewed by the Department for an additional ten (10) year period. IC § 6-8.1-8-2(f)(1) and (3). The judgment shall be released by the Department when the warrant is fully satisfied (i.e., paid). IC § 6-8.1-8-2(g).

If a Taxpayer does not pay the issued tax warrant, then the matter may be sent to collections. The Department currently contracts with United Collection Bureau, Inc. (UCB) for assistance with delinquent tax warrants. Collections notices issued by UCB include the following information:

• Warrant Docket Number
• Liability Number
• UCB Reference Number
• Balance Due

The UCB notice also references the Indiana Department of Revenue, cites Indiana Code § 6-8.1-8-4, and includes three ways for a taxpayer to pay the liability – online via the UCB website, by phone (877-837-0724), and by mail. The notice also includes information on the partnership between the Department and UCB and directs taxpayers to https://www.in.gov/dor/3887.htm for additional information. Further, a taxpayer may receive a notice directly from the county sheriff’s office if the tax liability remains unpaid. Notices from the sheriff always include the warrant number (which is the same warrant number on documents received from UCB), the tax period at issue, and information for payment directly to the sheriff’s office.

The Department periodically receives examples of scam tax warrants. Distinctions to look for between legitimate notices discussed above or any communication sent from someone other than the Department, its authorized collection agency (currently UCB), or an official subdivision of the State such as the sheriff and the scam warrants include:

• Scare tactic phrasing such as “Notice of Intent to Levy Assets,” this is a “Distraint Warrant,” “Do Not Disregard,” and “Your Property Will Be Seized”
• No reference to the Indiana Department of Revenue
• Payments due in shorter times than provided for under Indiana Code (i.e., fifteen days instead of twenty days)
• Use of “judgement,” a traditional British spelling, instead of the more accepted American spelling of “judgment”

If in doubt, the Department encourages taxpayers to verify any information before responding to a notice or tax warrant purported to be issued by the Department, UCB, or the county sheriff’s office. Taxpayers can always confirm that they owe a specific liability, including amounts owed pursuant to a warrant, by logging into their INTIME account. Taxpayers can also send secure messages to Department staff via INTIME. Finally, Taxpayers can contact the Department by phone (317-232-2240) Monday to Friday between 8 a.m. and 4:30 p.m. Eastern Standard Time.