If you’re living in Georgia and you owe taxes, you may be wondering how you will pay them.
The Georgia Tax Payment Plan may be a good option for you. This article will tell you all about the plan and how to use it when you owe taxes.
Keep reading for more information on qualifying for a Georgia state tax payment plan.
Georgia State Taxes Payment Agreement (Installment Agreement)
The Georgia Department of Revenue (DOR) offers debt repayment programs to individuals who owe state income taxes. These payment agreements are also known as Installment Agreements by the DOR.
These agreements give filers the option to pay off their tax debt in installments over time.
Payment plan agreements are usually for a maximum of 60 months, and they must fulfill penalties and interest obligations.
Taxpayers can apply for a payment plan, but there are instances when one will not be accepted.
Who qualifies for a Georgia tax payment plan?
The Department of Revenue, like most state tax payment arrangements, has a list of instances when it will not approve a payment agreement or installment agreement.
For the DOR to consider a request for a Payment Agreement, the following conditions must be fulfilled:
- Not in bankruptcy
- Not have a pending Offer-in-Compromise application filed
- All state tax returns required to be filed must be filed
- Delinquent taxes owed must not have been assigned to a private collection firm
- Must agree and meet all future tax obligations
If you’re unsure why you can’t apply for a Georgia tax payment plan, or if you’re worried obstacles are preventing you from doing so, it’s crucial to contact a tax professional.
It’s conceivable that submitting all past late tax returns may put you in a position for acceptance. It’s also probable that your file has errors and is the reason for the rejection.
Steps to Request and Set Up a Georgia Tax Payment Plan
Individuals and organizations that owe the state of Georgia may set up a payment plan in various ways.
The state requires that you submit a minimum payment of $25 per month.
There appears to be no limit imposed by the DOR in requesting a tax payment plan (like the IRS does).
Furthermore, taxpayers should constantly evaluate other possibilities since interest and late payment penalties accumulate.
1. Hire a Tax Professional that is Licensed
Taxpayers who have difficulties with Georgia’s Department of Revenue may seek help from a qualified tax professional.
Using a tax professional may save the taxpayer time and produce better outcomes.
2. Send a Request Through the Georgia Tax center
The DOR provides taxpayers the option to submit a payment agreement request online. Georgia Tax Center members may apply for their payment plan online.
Individuals and companies can propose a payment amount and schedule once they have been authenticated into the system.
DOR charges a $50 administration fee to create the payment agreement when payment is made via electronic funds transfer (EFT).
If you choose to make monthly payments by paper check, the setup fee will be $100.
The DOR may reduce the fee to $25 if the taxpayer is low-income. The fee is non-refundable and must be subtracted from the total tax balance when determining monthly payment amounts.
3. Send a Paper Application
The Georgia Department of Revenue encourages taxpayers to request a payment plan through the Georgia Tax Center.
However, they will also accept paper applications that taxpayers can mail.
Even though the paper application doesn’t have the new 60-month duration threshold, taxpayers can still use it.
Taxpayers can find the application to file here.
After completing the form, taxpayers may send it to:
Georgia Department of Revenue
PO Box 740396″
Atlanta, GA 30374-0396
How to know if Your Georgia Tax Payment Plan Was Accepted
If the DOR approves or rejects a payment plan, they will notify the taxpayer using either an online or paper application.
According to the DOR, taxpayers should expect to hear back from the DOR within 30 days after submitting an application for a Payment Agreement.
If the DOR accepts the offer, the taxpayer is contacted by mail. The letter will state how long (the number of monthly payments) it will take.
It will also provide the taxpayer information about each monthly payment and when the first payment is due.
keep in mind
If you don’t pay your taxes, the state or federal government may take your refunds to pay what you owe. And, interest will continue to accrue on the amount you still owe.
If the taxpayer follows the terms of the payment agreement, then all other forms of enforced collection will be stopped.
Can You Modify An Existing Georgia Tax Payment Plan
If a taxpayer’s account balance grows or they are unable to make the monthly minimum payment on their existing agreement, DOR generally requires them to sign a new agreement.
In this situation, the DOR charges a new setup fee to the taxpayer.
However, if taxpayers need to update their bank account and routing number, they must contact DOR at 404-417-2122 no later than five days before the next draft.
Cure/In Grace letter for Insufficient Funds
If the taxpayer’s payment is returned for insufficient funds, they will receive a “Cure/In Grace” letter.
The letter will notify them that payment is required and an extra $25 return charge to avoid the contract falling into default.
Georgia is one of the more difficult states to create payment plans due to the lack of forgiveness for penalties and interest. Furthermore, attempts to collect your debt might not be avoided by a plan.
A tax advisor will walk you through preparing and submitting your application. They can also advise you on keeping your plan’s conditions in mind to avoid additional fines. To get started, call today!