The CNMI Division of Revenue and Tax’s Collection …

1 Publication 594CM (Rev. 8/99)1 Division OF Revenue AND TAXATIONCOMMONWEALTH OF THE NORTHERN MARIANA ISLANDSPost Office Box 5234 CHRBS aipan , MP 96950 Tel. (670) 664-1000 What You Should Know AboutThe CNMI Division of Revenue and Tax s Collection ProcessKeep this publication for future reference Publication 594 CMWe usually send this publication to taxpayers along with a final bill for taxes they owe. Ifyou owe the tax shown on the bill we sent you, please arrange to pay it immediately. If youbelieve the bill is incorrect, call us now so that we may correct the mistake. We urge youto settle your tax account now so that we don't have to take any further action to collectthe taxes you publication tells you the steps the CNMI Division of Revenue and Tax may take tocollect overdue taxes. It also includes a summary of your rights and responsibilities concerningpaying your CNMI you will find a number of titles of CNMI forms and publications that apply to the varioussituations discussed.

2 For copies of these documents, please call us, write to us, or visit theDivision of Revenue and Tax. Please contact us right away; we will work with you to solve yourtax note that the information in this document applies to all taxpayers- for example,individuals who owe income tax and employers who owe employment tax. Special rules thatapply only to employers are in separate sections at the document is for information only. Although it discusses the legal authority that allows theDivision of Revenue and Tax to collect taxes, it is not a precise and technical analysis of the law. Publication 594CM (Rev. 8/99)2By law, you have the right to be treatedprofessionally, fairly, promptly, and courteously byRevenue and Tax employees. Among otherthings, you have the right to:<disagree with your tax bill,<meet with a Revenue and Tax managerif you disagree with the Revenue andTax employee who handles your taxcase,<appeal most Revenue and Taxcollection actions,<be represented by someone whendealing with Revenue and Tax matters,and<receive a receipt for any payment details about your rights, see Publication 1CM,Your Rights as a Taxpayer.

3 You received a copyof it ,with your first you disagree with our you disagree with the decision of aRevenue and Tax employee at any time during thecollection process, you can ask that employee'smanager to review your you ask for a review, the employee willrefer you to a manager. The manager will eitherspeak with you then or will return your call by thenext work you disagree with the manager's decision,you have the right to file an appeal under theCollection Appeals Program. This programenables you to appeal most Collection actions wemay take, including filing a lien, placing a levy onyour wages or bank account, or seizing yourproperty. If you want someone to represent dealing with the Division of Revenueand Tax, you may choose to represent yourself, oryou may have an attorney, a certified publicaccountant, an enrolled agent, or any person enrolled to practice before the IRS represent example, you may want your tax preparer torespond to a tax bill that vou believe is your representative appears without you, heor she must file a Form 2848CM, Power of Attorneyand Declaration of Representative, or Form 8821,Tax Information Authorization, before being allowedto receive or inspect confidential items to The Division of Revenue and Tax can shareyour tax information - By law, the Division ofRevenue and Tax can share your taxinformation under strict legal guidelines withIRS, Guam, the Attorney General s Office andother CNMI Agencies.

4 We may contact a third party - The law allowsus to contact someone else, such as neighbors,banks, employers, or employees, to investigateyour case. If you are involved In bankruptcyproceedings- Contact the Division of Revenueand Tax. While the proceeding may noteliminate your tax debt, it may temporarily stopRevenue and Tax s enforcement action fromcollecting a debt related to the bankruptcy. Spousal defenses - In some cases, you maynot be liable for taxes, interest, and penalties ona joint income tax return. Contact Revenue andTax for more Information You Should KnowWe have a special program to help you with taxproblems that cannot be resolved through normalDivision of Revenue and Tax Problem Resolution Program ensure thattaxpayer s problems are handled promptly andproperly. If you ve made repeated attempts to workout your tax problems with the Division of Revenueand Tax but have been unsuccessful, first ask anyRevenue and Tax employee or manager to help the problem continues, ask an employee from theTechnical Research and Appeals Branch who willdetermine if you qualify for the Problem 594CM (Rev.)

5 8/99)3 What to Do When You Owe TaxesPay Your Taxes - or Tell Us Why You Can tWhen you file your tax return, we check to see ifthe math is accurate and if you have paid thecorrect amount. If you have not paid all you owe,we send a bill called a Notice of Tax Due andDemand for Payment. (You may have alreadyreceived it if you did not pay your taxes or if yourpayment was incorrect.) The bill includes the taxes,plus penalties and interest. We encourage you topay your bill by check or money order as quickly you have received a bill for unpaid taxes, youshould pay the entire amount - or tell us right awaywhy you cannot. Call the office that sent you thebill. There are several different ways that you you do not pay the taxes you owe and if youmake no effort to pay them, we can ask you to takeaction to pay your taxes, such as selling ormortgaging any assets you have or getting a you still make no effort to pay your bill or to workout a payment plan, we may also take more seriousaction, such as seizing your bank account, levyingyour wages, or taking your other income or you cannot pay all that you owe now, there's stillsomething you can you cannot pay all your taxes now, pay as muchas you can.

6 By paying now, you reduce the amountof interest and penalty you will owe. Then,immediately call, write, or visit the Division ofRevenue and Tax to explain your you explain your problem, we may askvou to fill out a Collection Information Statement tohelp us compare your monthly income with yourexpenses and to figure out the amount you can can then help you work out a payment plan thatfits your problem. Based on your situation, we willwork with you to consider several different ways topay what you owe:<You may be able to make monthlypayments through an installmentagreement,What if you believe your bill is wrong?If you believe your bill is wrong, let us know assoon as possible. Call the number on your bill,write to the Division of Revenue and Tax, orvisit the Division of Revenue and Tax, if youprefer. To help us correct the problem, gathera copy of the bill along with copies of anyrecords, tax returns, and canceled checks,etc., that will help us understand why youbelieve your bill is you write to us, tell us why youbelieve your bill is wrong.

7 With your letter,include copies of all the documents yougathered to explain your case. Please do notsend original documents. If we find you arecorrect, we will adjust your account and, ifnecessary, send you a corrected 594CM (Rev. 8/99)4<You may be able to apply for an Offer inCompromise, or<You may qualify for a temporary delayor your case may be considered asignificant Up anInstallment AgreementInstallment agreements allow the full payment ofyour debt in smaller, more manageable agreements generally require equalmonthly payments. The amount of your installmentpayment will be based on the amount you owe andyour ability to pay that amount within the timeavailable to the Division of Revenue and Tax tocollect the tax debt from you. An installmentagreement is a reasonable payment option forsome should be aware, however, that aninstallment agreement is more costly to you thanpaying all the taxes you owe now and may be morecostly than borrowing funds to pay the amount youowe.

8 Why? Because the Division of Revenue andTax charges interest and penalties on the tax youowe, and charges interest on the unpaid penaltiesand interest that have been charged to your taxaccount. So, while you are making payments onyour tax debt through an installment agreement, theDivision of Revenue and Tax continues to chargeinterest and penalties on the unpaid portion of thatdebt. The interest rate on a bank loan or cashadvance on your credit card may be lower than thecombination of penalties and interest that theDivision of Revenue and Tax you would like to pay off your tax debtthrough an installment agreement <You owe less $10,000 or less in tax,just call the number on your bill to setup your plan now. We ll tell you whatyou have to do to begin today.<You owe more than $10,000 in tax,we may still be able to set up aninstallment agreement for you, but youmay have to fill out Form 433-F, Collection Information though you agree to an installmentagreement, we may still file a Notice of Tax Lien tosecure the government's interest until you make afinal payment.

9 However, we cannot levy againstyour property while your request for an installmentagreement is being considered, while youragreement is in effect, for 30 days after yourrequest for an agreement has been rejected, or forany period while an appeal of the rejection is beingevaluated by the Division of Revenue and you do arrange for an installmentagreement, you can pay with personal or businesschecks, money orders, or certified agreement is based on your financialsituation. If a change in your financial situationmakes it necessary to change your agreement, wewill send you a letter 30 days before we changeyour plan. If you have an installment agreement,you must pay on time. If you cannot, tell may end the agreement if you don'tgive us updated financial information when weask for it, or if you don't meet the terms of theagreement. Your agreement could end if youpay late, miss a payment, or don't file or payall required tax returns. In that case, we maytake enforced Collection for an Offer inCompromiseIn some cases, we may accept an Offer inCompromise to settle an unpaid tax account,including any interest and penalties.

10 With this typeof arrangement, we accept less than the amountyou owe when it is doubtful we will be able to collectall the debt in the near file for an Offer in Compromise, see Form656, Offer in Delaythe Collection ProcessIf we determine that you cannot pay any of your taxdebt, we may temporarily delay Collection until yourfinancial condition improves. You should know thatif we do delay collecting from you, your debt willincrease because penalties and interest arecharged until you pay the full amount. During aCaution!Publication 594CM (Rev. 8/99)5temporary delay, we will again review your ability topay. We may also file a Notice of Tax Lien toprotect the government's interest in your Revenue and Tax s Collection ActionsIf you have a significant case may be considered a significanthardship if paying your taxes would mean that youcannot afford to maintain the necessities to liveday to day, such as food, clothing, shelter,transportation, and medical addition, other cases may be consideredas significant hardship by law: an immediate threatof adverse action, a delay of more than 30 days inresolving taxpayer account problems, the incurringof significant costs (including fees for professionalrepresentation) if relief is not granted, andirreparable injury to, or long-term adverse impacton, the taxpayer if relief is not apply for emergency relief if you arefacing a significant hardship, call the Division ofRevenue and Tax or visit the Office in Saipan,Rota or Tinian.