In order to request a monthly installment plan, you must comply with the following:
- You cannot incur any new liabilities
- Payments must remain current
- Payment Plans are subject to review at any time and may require updated financial information or additional documentation.
- No more than two previous “defaulted” or “change in terms” payment plans unless extraordinary circumstances occur
In certain circumstances, you can have longer to pay or your agreement can be approved for an amount that is less than the tax you owe.
- You may be asked to provide detailed financial information, including your income and employer, spouse’s income and employer, number of dependents, monthly expenses, banking information, and other pertinent information to determine your ability to pay the liability.
- You could be asked to provide a complete written Financial Statement - Personal or Business.
- You could be asked to provide a complete written Financial Statement - Personal or Business (Non-Fillable).
- While establishing payment arrangements, you must be in tax filing compliance before the terms of the agreement will be in effect.
- When making full or partial payments to the department, always include the tax identification number on the check or money order.
- All payments must be made on time and no future liabilities may arise during the repayment period.
- If you cannot make a payment as scheduled, contact the department and advise a collections representative when you will be making the payment.
- If the terms of the arrangements are not kept, the department will consider enforcement action, such as the filing of a tax lien or levying your wages, bank accounts, or other assets.
- Depending upon the amount you owe and the length of time it will take to repay your liability, a tax lien may be filed.
- Once the account is paid in full, the lien will be released.
- In order to expedite the release of a lien, all payments within 60 days of payoff must be by
cash or certified funds.
- If payment is made by personal check, it could delay the release of lien by up to 60 days.