If you owe taxes in Colorado, you might be wondering what your alternatives are for establishing a tax payment plan. Yes, if you’re unable to pay your tax bill in total, there are options.
However, consider that penalties and interest may become a factor when you’re accepted for a Colorado Department of Revenue payment plan.
Can You Make Payments on Colorado State Taxes?
Yes, if you are unable to pay your outstanding tax debt in Colorado, you may request a payment plan through the state’s Department of Revenue.
You will need to speak with a collection representative based on things like how much debt you owe and your present financial position.
In order to assist you in resolving your tax problem, the Colorado Department of Revenue will try to get your debt paid as swiftly as possible.
Can You Pay Colorado State Taxes in Installments?
Yes, once you’ve been approved for a payment plan, you’ll be able to make payments through an installment contract.
In Colorado, an installment agreement generally permits you to make monthly payments until your debt is paid off in full.
The credit card maximum monthly payment that you can pay is $25, but it’s strongly encouraged that you try to pay as much as possible.
What Are the Conditions of a Colorado Tax Payment Plan?
During the duration of your installment agreement, interest will continue to accumulate on a prorated basis.
Any tax refunds you claim will be applied to your debt immediately. This is why paying the greatest amount possible each month in each installment benefits you.
To maintain your payment plan effective, you must make all monthly payments owing on the due date.
You must also file and pay any current and future tax returns when they are due in order to keep your payment plan valid.
Who’s Eligible for a Colorado State Tax Payment Plan?
Anyone who is unable to pay a tax bill may apply for a payment plan through the Colorado Department of Revenue.
This is actually one of the simplest states for obtaining approved for a tax payment program as long as you act quickly.
If you and your lender can agree on a fair monthly payment amount, the Colorado Department of Revenue will send you agreement paperwork.
What Is the Process for Creating a Tax Payment Plan in Colorado?
Individuals in Colorado who seek to pay their taxes via a tax payment plan can do so either online or by phone once they receive their tax bills.
If you owe money on your individual income tax bill for this year, you can request a payment plan before getting your bill if you submit your request by April 15.
Tax payment plans for business tax debt are also available in Colorado.
However, the only way to request it is by speaking with a compliance agent over the phone.
Need help with tax debt Help?
Colorado is a state that considers each payment option on a case-by-case basis. This can work in your favor if you take the necessary actions to obtain tax debt relief for Colorado citizens who owe money over time.
Our tax professionals help individual taxpayers and business owners find solutions for getting a Colorado revenue payment plan in place with as few penalties or extra fees tacked on as possible.
We’re a team of accountants, attorneys, and tax experts with over 30 years of expertise.
Don’t let the repercussions of failing to pay your state taxes end up making your tax situation worse than it has to be! Give us a call right now to get started on taking action!