The Arizona Tax Payment Plan is a monthly payment plan for paying delinquent taxes for Arizona taxpayers.
This program allows you to pay your tax liability over time and in affordable installments automatically withdrawn from your bank account every month.
The Arizona Tax Payment Plan helps Arizona taxpayers avoid penalties and interest charges by providing an easy way to make payments on their outstanding tax balances.
The Arizona Tax Payment Plan can help you get back on track with your obligations and reduce the stress of meeting those obligations!
Can You Make Payments on Arizona State Taxes?
Yes, Arizona allows taxpayers to make full or partial payments to satisfy their obligations. This is handled by the Arizona Department of Revenue (ADOR).
You must make all payments on time, without exception, after you’ve been accepted. If you don’t make a payment on time, ADOR may take action against you. Penalties can include fines and wage withholdings.
Can You Pay Arizona State Taxes in Installments?
The Arizona Department of Revenue’s tax payment plan is similar to the IRS Installment Agreement (IA) plan that many people are familiar with.
Someone owing $100 or less will not be offered a payment plan.
You must pay your debt in full if it is worth less than $100. The following table indicates the payment schedule for all other amounts of debt:
- $101 to $1,000: 6 months
- $1,001 to $2,500: 9 months
- $2,501 to $4,999: 12 months
- $5,000 or more: 24 months (varies by case)
You may need to negotiate with the Arizona Department of Revenue if your debt is more than $5,000.
In Arizona, you have 24 months to pay off higher obligations under an income tax payment plan. However, with the help of a tax professional, you may be able to set up an extended individualized payment arrangement.
What Are the Conditions of the Arizona Tax Payment Plan?
The most important thing to remember is that you will be required to make full payments on time.
ADOR reserves the right to cancel your arrangement for returned payments or insufficient funds automatically. A $50 Return Payment Penalty will be added to your account.
ADOR may cancel your arrangement for a returned payment or if you do not have enough money. If this happens, they will charge you $50 as Return Payment Penalty.
A tax lien might be filed against your wages, bank accounts, and other assets if you’re late on a state of Arizona income tax payment plan. If you accumulate new tax debt or fail to file a tax return on time, your payment plan can also be terminated.
Once you’ve secured an Arizona state tax payment plan, you can’t extend it. You won’t be able to add future taxes to an existing agreement.
Who’s Eligible for an Arizona State Tax Payment Plan?
All Arizona taxpayers are eligible for an installment agreement to pay off debts. However, ADOR may refuse you a payment plan after examining your application and financial information.
If your financial information shows that you can reasonably secure a loan to pay off your tax debt, the IRS may demand that you make a full payment.
What Is the Process for Arranging a Tax Payment Plan in Arizona?
You can apply for a payment plan by filling out an Individual Income Tax Installment Agreement Request form (Form 140-IA).
If you apply for a state installment agreement, ADOR may request that you complete a Collection Information Statement (CIS) if you need one.
ADOR typically assesses a taxpayer’s monthly income and expenses. In addition, your assets will be looked at to determine your ability to pay in full or obtain a loan.
If you’re applying as a business owner, you’ll need to complete the required Collection Information Statement for Businesses.
This is a thorough document that requests information on company activities and finances. It’s essential that you get help from a tax professional while completing this form.
The terms of business installment contracts are similar to those found in individual contracts. The length of the contract, on the other hand, is determined by the amount owed.
Need help with Arizona Tax Payment Plan
Tax payment plans are intended to assist you with paying your tax obligations as they come due. Our tax professionals will help you apply for an Arizona state tax payment plan.
They’ll look at your alternatives for payment based on the amount owing and your unique circumstances.
If necessary, they can assist you in applying for a Taxpayer Assistance Order (TAO) to demonstrate that you are experiencing extreme hardship and are unable to pay your tax obligation.
Call for a free consultation today!