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ADOR Advises Taxpayers to be Aware of Third-Party Tax Collection Letters

May 28, 2020
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The Arizona Department of Revenue (ADOR) wants taxpayers to know if they receive a letter from a third-party collections agency that uses the title “Distraint Warrant,” the department does not sanction this notice and does not currently use third-party tax collectors.

The Distraint Warrant letter advises the recipient of unpaid taxes to the State of Arizona and that the “State of Arizona uses the warrant in collection actions, such as garnishment of wages, bank accounts, property seizures, federal tax refund offset, and creation of a property lien.” The notice then provides a deadline to call a 1-800 number.

The Department of Revenue has been made aware of taxpayer concerns regarding the letter’s aggressive tone.

Before considering more formal enforcement action, the department will work with a taxpayer to arrive at voluntary compliance including utilizing options such as an appropriate payment plan.

If the Department of Revenue determines formal enforcement actions are required, written notices will clearly include department letterhead, taxpayer information, and outline next steps.  An ADOR written notice will not use the term, “Distraint Warrant.”

Taxpayers with questions about ADOR correspondence can contact the department at www.azdor.gov/contact-us.

For additional information on the Arizona Department of Revenue visit www.azdor.gov.

 

 

Thursday, May 28, 2020