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The Connecticut Department of Revenue Services 30-day Collection Notice is your FINAL warning.
Then there are notices that will cause something really bad to happen to bank accounts, to wages. For the IRS, the really bad notice is the Final Notice of Intent to Levy. For the State of Connecticut, the really bad letter is the CT DRS 30-Day Collection Notice. This article will discuss what the Connecticut Department of Revenue Services (DRS) 30-day notice is, and what action to take if you received one.
What happens next if you don't act: The legal effect of a CT DRS 30-day Collection Notice
The state, like the IRS, can levy wages or bank accounts without a court order. In order to do so, the Connecticut DRS must first issue the 30-day Collection Notice.
In the case of bank levies: The DRS is incredibly reluctant to release the funds. Compare this with the IRS: If a hardship could be shown (which is true in most cases — take away all of someone's money and bank accounts and most people will have a hardship) and a collection alternative can be proposed within 20 days, the IRS will release everything held in a bank account levy. However, the DRS will likely not return the money.
In the case of wage levies. The IRS will be far more lenient. An IRS wage levy can be released as long as a hardship can be shown and a collection alternative is proposed. However, with the case of the wage levy with the Connecticut DRS, the state will automatically levy 25% of gross pay. No matter what. While that 25% can be negotiated down, it is far more difficult to do so, and, unlike the IRS, the amount will never be zero. No matter how much of a hardship it is causing. That is, you could be homeless, using all of your money for your child's cancer treatment, and the DRS would still levy your pay.
And one more fact: The amount of taxes and interest on the CT DRS 30-day collection notice is the amount you will pay. Unlike IRS debts which will expire after the Statute of Limitations expires, Connecticut state tax debts never expire.
How to get immediate help with a CT DRS issue
The most important thing is to deal with a Connecticut state tax problem on your own terms — prior to a levy, which means responding to a DRS 30-day collection notice — NOW! If you do so, you will receive a far more lenient repayment schedule, or even perhaps be able to negotiate an Offer of Compromise with the State of Connecticut.
Our main office is located in Wallingford. Contact us for a free consultation about your case. We can help you like we have done for thousands of other Connecticut residents.