What to Do When You Receive a Tax Warrant?

A tax warrant is one of the most important terrible tax documents you can receive. Also referred to as a tax judgment or tax lien, a tax warrant provides the Tax Department many options to take collection action against you or your business.

Some examples of collection action which stem from the issuance of a tax warrant include but are not limited to the placement of liens against property, the levy of funds from a bank account and the retention of your tax refund. A tax warrant can also lead to an involuntary income execution whereby your employer is forced to withhold (garnish) a portion of your paycheck and remit it to the Tax Department.

While the statute of limitations can vary depending on the tax warrant, tax warrants generally last up to 20 years.

Furthermore, a tax warrant negatively impacts your credit score and usually remains on your credit report for an additional 7 years after the tax liability is paid in full. A tax warrant is also public record, which will show up on searches for any individual’s or business’s information.

Sales Tax Defense LLC offers a variety of services to help you if a tax warrant has been issued. We can help you obtain a satisfaction of judgment if the liability which generated the tax warrant was paid. If you believe the tax warrant was issued in error, we can help you get the tax warrant vacated (“erased”). Having a tax warrant vacated erases the tax warrant altogether. And if the tax warrant has expired we will work with the Tax Department to get it “extinguished.”

Whether you are trying to resolve a tax warrant or need help resolving the underlying tax liability, contact Sales Tax Defense LLC and we can help you!