State of Michigan Liens and Levies

Not paying your sales tax, income, corporate or other State taxes is serious. And the State resorts to actions that protect their ability to collect the taxes using liens and levies. Have you received a notice that reads “LIEN COLLECTION NOTICE?”

What just happened?

What is a Lien?

A lien is a means to secure a debtors interest in the event of default on payment of the debt. Most people already have at least one lien; a lien put on your home by the bank that has financed your mortgage. All liens become public record.

What is a Levy?

If you now have a tax lien on your personal assets (maybe business assets), historically you ignored many payment notices and have outstanding taxes owed. And the taxes have to be paid in full by a due date. Is MARCS calling you? The Michigan Accounts Receivable Collection System?


These notices now mean you are moving to a levy of assets. A Levy means the State is preparing to notify banks to send to them any money they have received on your behalf. Wage garnishments may also apply.

But, again, to have the State resort to this action, you have ignored assessment notices, lien notices, warrants and possibly ignored a Revenue Officer that came to your door. Do you want the State to garnish your wages and leave you with little to live on?

Liens and levies are time-sensitive, which means specific dates for action are referred to in the notices. We must act before the deadlines. You have 35 days to pay your final tax bill before the lien will be placed.

How can we assist you when you receive a lien or levy notice?

  • We will clearly explain to you what happened.
  • We will analyze historically the basis for the lien or levy. Can we find anywhere that the State may be wrong or have incorrect information? Are they missing returns?
  • We will contact the State and stop the levy and request “time” to resolve the issue. Such resolutions include the discussion at State of Michigan Tax Payment Plans. We will meet with a Revenue Officer if required.

We will do everything we can to allow you to live as normal as you can under these circumstances.

Call Christy at 586-323-2360 to start discussing how we can assist you.

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