The CNMI Division of Revenue and Tax’s Collection Process

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.

2 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. 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.

3 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. 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.

4 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.

5 The Attorney General s Office andother CNMI Agencies. 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.

6 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. 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.

7 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.

8 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.

9 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. 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.

10 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. 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.