Florida Tax Warrants and Asset Seizure for Unpaid Taxes

If you don't pay your Florida taxes, the Department of Revenue (DOR) has the right to collect the taxes involuntarily. The first step is filing a tax warrant in the counties where you live, own property, or run your business. The tax warrant creates a lien against your property, and it gives the state the right to seize your assets including wages, money, and real or personal property. 

To get help with Florida back taxes, use TaxCure to find a licensed tax pro who has experience with the DOR. 

What Is a Tax Warrant?

A tax warrant is another name for a tax lien. When the DOR files a tax warrant, it creates a legal claim to your assets. The warrant also lays the groundwork for the state to seize your assets or garnish your wages.

What to Expect When the FL DOR Files a Tax Warrant

If you don't pay your taxes, the DOR will send you a notice of assessment. If you don't respond, the agency will send you a demand for payment noting the penalties and interest on the account. If you still don't pay, the DOR will send a tax warrant to the sheriff in the county where you own property. The DOR has a right to file a tax warrant against you, regardless of how much you owe.

Before sending the warrant to the sheriff, the DOR will attach a list of the property they know you own. The warrant gives the sheriff the right to seize and auction off your property. If the proceeds of the seized assets exceed your tax liability including penalties, interest, and collection costs, you will get a refund of the remaining amount. 

The warrant also gives the sheriff the right to seize your assets held by other people or entities. For example, the state can seize the funds in your bank account or tell your employer to garnish your wages. If your business uses a credit card processor, the warrant gives the state the right to intercept those payments. Similarly, the DOR can also seize accounts receivables or any other funds owed to you or your business by other entities. 

Tax warrants often give the Florida DOR the right to pierce the corporate veil. In other words, your personal assets may be seized for certain business tax debts.

Delinquent Taxpayer List

The FL DOR publishes a list of taxpayers with tax warrants worth $100,000 or more. If no one has a tax warrant over that value in the county, the DOR posts the names of the taxpayers with the two highest liabilities. 

You will not appear on the list if you are in bankruptcy or have set up a payment agreement with the DOR. 

How to Get Rid of a Tax Lien

Once a tax warrant has been filed, the most effective way to get rid of it is to pay your taxes in full. Then, the sheriff will not be able to enforce the warrant, and the DOR will withdraw it from the public record. 

You may also be able to get a warrant removed by setting up a stipulated payment plan. This is a monthly payment plan where the terms clearly state that the state must remove the warrant. However, if you default on the payment plan, the DOR may re-issue the warrant and move forward with seizing your assets.

In some situations, you may not be able to get rid of the tax warrant. Instead, you may need to look into lien subordination or discharge. The DOR may be willing to agree to these options in cases where doing so helps them to collect the tax. Lien discharge is when the state removes the lien from a specific piece of property. Subordination is when the DOR agrees to let another creditor's lien take priority over the state's lien.

How to Protect Your Property and Avoid Warrants

If you pay your tax in full plus all fees and interest, the sale of your property cannot move forward. Ideally, however, you should not wait to that point. Instead, when possible, use these strategies to avoid a tax warrant:

• Set up payments - If you can't afford to pay your tax bill, contact the Department as soon as possible to request payments. 
• Budget - Plan carefully for upcoming tax liabilities. If you collect sales tax, consider setting aside the collected tax at the time of sale so that you don't accidentally spend the funds. 
• Complete returns accurately - Make sure that you complete your returns accurately so that you don't understate or overstate your tax liability. 
• Update your address - Notify the Department if your address changes so that you don't miss any notifications.
• Stay up to date on tax changes - Make sure that you understand changes in tax codes, filing processes, and tax rates to reduce the risk of making a mistake.

To learn more about how to stay current with your Florida tax obligations, consider reaching out to a professional today. Using TaxCure, you can search for tax professionals in Florida. You can also narrow down your search so that you only see CPAs, tax attorneys, and enrolled agents who have experience with FL tax warrants.