Uncollected tax warrants; action by department
Sec. 8. After a tax warrant becomes a judgment under section 2 of
this chapter or a tax warrant is returned uncollected to the department
under section 3 of this chapter, the department may take any of the
following actions without judicial proceedings:
(1) The department may levy upon the property of the taxpayer
that is held by a financial institution by sending a claim to the
financial institution. Upon receipt of a claim under this
subdivision, the financial institution shall surrender to the
department the taxpayer's property. If the taxpayer's property
exceeds the amount owed to the state by the taxpayer, the
financial institution shall surrender the taxpayer's property in an
amount equal to the amount owed. After receiving the
department's notice of levy, the financial institution is required
to place a sixty (60) day hold on or restriction on the
withdrawal of funds the taxpayer has on deposit or subsequently
deposits, in an amount not to exceed the amount owed.
(2) The department may garnish the accrued earnings and wages
of a taxpayer by sending a notice to the taxpayer's employer.
Upon receipt of a notice under this subdivision, an employer
shall garnish the accrued earnings and wages of the taxpayer in
an amount equal to the full amount that is subject to
garnishment under IC 24-4.5-5. The amount garnished shall be
remitted to the department. The employer is entitled to a fee in
an amount equal to the fee allowed under IC 24-4.5-5-105(5).
However, the fee shall be borne entirely by the taxpayer.
(3) The department may levy upon and sell property and may:
(A) take immediate possession of the property and store it in
a secure place; or
(B) leave the property in the custody of the taxpayer;
until the day of the sale. The department shall provide notice of
the sale in one (1) newspaper, as provided in IC 5-3-1-2. If the
property is left in the custody of the taxpayer, the department
may require the taxpayer to provide a joint and several delivery
bond, in an amount and with a surety acceptable to the
department. At any time before the sale, any owner or part
owner of the property may redeem the property from the
judgment by paying the department the amount of the judgment.
The proceeds of the sale shall be applied first to the collection
expenses and second to the payment of the delinquent taxes and
penalties. Any balance remaining shall be paid to the taxpayer.
As added by P.L.23-1986, SEC.14. Amended by P.L.53-1987, SEC.2;
P.L.3-1990, SEC.26; P.L.71-1993, SEC.24; P.L.129-2001, SEC.26.
Last modified: May 28, 2006