What to do if you receive a tax seizure notice from Hacienda

Hacienda defines the seizure of movable and immovable property as an instrument to secure collection of a tax debt when the taxpayer has breached the terms granted for paying it. It is not the first step in anything: it comes after a debt has been notified and after the term the law grants to appeal has expired. The Secretary is authorized to collect through seizure proceedings any debt that has been notified to the taxpayer once that term has passed. Every Hacienda seizure process begins with a notice sent to the debtor by certified mail with return receipt.

This guide applies to anyone who has received a seizure notice from the Department of the Treasury. If what you received is a Notice and Demand for Payment for a deficiency, that is an earlier and different procedure, with its own 30-day deadline to request reconsideration and an administrative hearing: there you are still at the stage of disputing the determination. A seizure arrives once that stage has passed.

• Acting within thirty (30) days: Hacienda states that from the date of the notice, the debtor has 30 days to satisfy the debt with Hacienda or to clarify the situation.Verified against the official source
• Contacting a representative at the nearest Collection District, or calling the Automated Call Center at 787-721-2020: that is what Hacienda says to do upon receiving a seizure notice.Verified against the official source

• The seizure notice you received by certified mail, with the return receipt: the date of that notice is what starts the 30-day period.
• Any earlier notice about the same debt, including the Notice and Demand for Payment if you kept it, because it shows where the collection comes from.
• Proof of any payment you have already made against that debt, if you believe the balance is not correct.

1. 1

   Step 1: Note the date on the notice and count 30 days

   Hacienda counts from the date of the notice sent to you by certified mail with return receipt. From there you have 30 days to satisfy the debt or clarify the situation, and once that term passes the Department has authority to proceed with the seizure of movable or immovable property. It is the shortest and most consequential deadline in this whole process, so the first thing is to know what day you are on.

2. 2

   Step 2: Call the Collection District or 787-721-2020

   This is what Hacienda says to do, in its own words: upon receiving a seizure notice, the taxpayer must contact a representative at the nearest Collection District office or call the Automated Call Center at 787-721-2020. Hacienda publishes the list of Collection Districts with their contact information in the Taxpayer Services section. Calling is not optional here: it is the route the agency points to for clarifying or resolving within the deadline.

3. 3

   Step 3: Verify the debt is yours and the balance is right

   Hacienda mentions two ways out within the 30 days: satisfying the debt, or clarifying the situation. That second one exists for a reason. If you already paid, if the debt corresponds to a year you disputed, if there are payments not credited, or if the taxpayer named is not you, that is exactly what to bring to the conversation with the Collection District, with the evidence in hand.

4. 4

   Step 4: Get professional help if the amount is serious

   A seizure reaches movable and immovable property. If the debt is significant, if you are unsure how it originated, or if the deadline is about to expire, a CPA or an attorney licensed in Puerto Rico is who can assess your real options with the agency. Hacienda also maintains the Office of the Taxpayer Advocate, attached to the Department, whose functions include handling taxpayers’ problems and claims and overseeing compliance with the Taxpayer Bill of Rights.

With the nearest Department of the Treasury Collection District, or by calling the Automated Call Center at 787-721-2020. Hacienda publishes the list of Collection Districts with their contact information within the Taxpayer Services section, which also lists the Collection Offices, the 360 Service Centers and the Office of the Taxpayer Advocate.

• Letting the 30 days pass hoping the situation resolves itself, when after that term Hacienda is authorized to seize movable and immovable property.
• Not collecting the certified mail, when the notice is sent precisely that way with return receipt and the deadline runs from its date.
• Assuming a seizure is the same as a deficiency notice: they are different stages, with different actions and different contact points.
• Paying without first verifying whether the balance is correct or whether payments are uncredited, when clarifying the situation is one of the two ways out Hacienda mentions.
• Facing a seizure for a significant amount alone, rather than consulting a CPA or attorney within the deadline.

These are the government pages this guide is based on.

• Departamento de Hacienda de Puerto Rico

  Hacienda

  hacienda.pr.gov

• What happens if I do not meet my tax responsibility?

  Hacienda

  hacienda.pr.gov