We may file a lien or take other action to collect a past-due tax debt. Filing a lien will have a negative impact on your credit rating. If we file a lien on your real estate or personal property, in most cases you cannot sell or transfer your property until you pay your past-due amount. You will also be responsible for paying any applicable filing and release fees associated with the lien before the department will release the lien. This lien is enforceable for 20 years. If we issue a lien in error, we will issue a release.
We have the authority to seize your real estate and personal property (such as automobiles and business assets) in order to collect past due tax, penalty, and interest. However, we will notify you of the amount you owe at least 10 days before we seize your property. Most seized property cannot be sold for at least 20 days (perishable items may be sold within 24 hours).
We have the authority to levy against your wages and your assets.
We may levy against your wages, salaries, bonuses, and commissions. Your employer must deduct up to 15 percent of the gross amount to pay your past due tax. We will notify you of the amount you owe at least 10 days before we send a wage levy to your employer. A wage levy can remain effective until your tax liability is paid. We will send your employer instructions that outline the responsibility to send funds from your paycheck to us. Your employer must continue to withhold the additional amount until we release the levy.
We may levy against your bank accounts, requiring the bank to hold for 20 days all monies in your account up to the total past due tax, penalty, and interest. After 20 days, the bank will forward these monies to us. This type of levy can also apply to other assets, including certificates of deposit, interest or dividends from an insurance policy, contractual payments, interest on bonds, and rental money due to you. We will notify you of the amount you owe at least 10 days before we send a levy.
Revoke, suspend, or hold your business certificate or professional license
If you owe past due tax and have a business or professional license, we may notify you and the appropriate licensing authority to begin revocation or suspension proceedings or to stop the issuance or renewal of your business or professional license.
Hold you personally responsible for business taxes We have the authority to assess the tax, penalty, and interest owed by a business against its officers or others responsible for filing and paying sales and withholding taxes. If you are found personally liable, you have 60 days from the date of the notice to protest the tax, penalty, and interest assessment.
Revoke your sales tax business certificate
If your business collects sales tax and makes sales tax payments to the Illinois state government, you must have a valid sales tax business certificate. We may request a hearing to revoke your sales tax business certificate if you owe the Illinois state government past due sales tax or have not filed your sales tax returns.
We will notify you that an administrative law judge will hold a revocation hearing and that you may be present to explain your position. If the judge issues an order revoking your business certificate, you must stop making taxable sales in Illinois until we reissue a valid business certificate. If you make retail sales in Illinois after we revoke your business certificate and you have not been issued a new business certificate, you may be charged with a Class A misdemeanor. The department may also revoke your sales tax business certificate if the department finds you have knowingly sold contraband cigarettes.
If your certificate is revoked, the department may post a revocation notice at your business location that indicates that your certificate is revoked and your business may be operating illegally.