This blog post will discuss what steps Illinois residents need to take to enroll in the Illinois Tax Payment Plan and how it works.
We will also cover who is eligible for Illinois Tax Payment Plan and ways you can avoid penalties if you are unable to make a payment on time.
Do you have an issue with late or unpaid state taxes in Illinois? An Illinois tax payment plan may be able to help you.
Due to the fact that it has a “nearly” automatic acceptance policy if you fulfill specific thresholds, Illinois is one of the friendlier states for tax payment plans.
However, penalties aren’t necessarily out of the question if you’re accepted into an Illinois state income tax payment plan.
Take a look at what you need to know.
Can You Make Payments on Illinois State Taxes?
Yes, if you have tax delinquency with the Illinois Department of Revenue, you can establish a payment installment plan.
The key thing to know about this alternative is that you must have finished all of your tax filings. The Department of Revenue may also conduct an inquiry into your financial position.
Can You Pay Illinois State Taxes in Installments?
Yes, the Illinois Department of Revenue allows those who are unable to pay their tax obligations as a result of financial hardship to make installment payments. In Illinois, the typical length of time for a tax payment plan is 12 months.
In certain situations, it’s feasible to have a plan extended to 24 months. The length of your payment plan and monthly totals are determined by your financial position.
What Are the Conditions of the Illinois Tax Payment Plan?
The majority of people who are ordered to pay back their debt within a year do so. The Illinois Department of Revenue, on the other hand, can demand you to repay the whole amount if it assesses that you are able to do so after reviewing your financial records.
If the Department of Revenue decides you are able to repay your tax debt in a single payment, it will take that into account.
That implies you will be expected to borrow to pay off a lender after repaying the state in full.
Unfortunately, once you’re accepted into an Illinois state income tax payment plan, you aren’t necessarily safe from liens. If the Department of Revenue believes for whatever reason that you can’t be trusted to pay your installments, it may place a lien on your property and assets.
The Department of Revenue has the power to attach a lien to an existing Illinois tax payment plan at any time.
Who’s Eligible for an Illinois State Tax Payment Plan?
Taxpayers who have filed their taxes and are current on them may apply for an Illinois tax payment plan. If you owe $5,000 or less in state income taxes, an installment agreement is typically automatically approved.
If you have a balance owing of more than $5,000, it’s likely that you’ll be asked to submit comprehensive information and documentation regarding your income, assets, and liabilities.
What Is the Process for Arranging a Tax Payment Plan in Illinois?
Individuals must complete and submit the Financial and Other Information Statement for Individuals (Form EG-13-I) if they want a payment plan. Businesses seeking installment plans must fill out the Financial and Other Information Statement for Businesses (Form EG-13-B).
The Illinois Department of Revenue does not offer many specifics regarding the criteria it uses to make judgments about approval. However, applicants are encouraged to offer “good faith” down payments to demonstrate their commitment to following through with the installments.
Need help with an Illinois Tax Payment Plan?
The only way you can profit from submitting your application correctly and completely is if it’s done so. Your chances of having your appeal accepted without any liens or fines being added are greater.
Our professional tax partners are familiar with Illinois taxpayers’ tax payment plan to pay back tax debts over time. They’ll work hard to help you get on the road to getting your tax debt paid off.
They can assist you in correctly preparing and filing all late tax returns to qualify for an Illinois tax installment agreement if necessary. They may also look at all feasible alternatives for state tax debt relief.
Please don’t wait any longer to call us right now to get the process started.