North Carolina Tax Payment Plan is a program that North Carolina taxpayers can use to pay their North Carolina taxes in monthly installments.
The North Carolina Tax Payment Plan allows North Carolinians to spread out the cost of North Carolina tax payments over twelve months, which helps keep them from incurring late penalties and interest on their North Carolina taxes.
Is it possible to join a North Carolina state income tax payment plan if you owe taxes to another jurisdiction Through the North Carolina Department of Revenue, it is feasible to establish an Installment Payment Agreement (DOR).
However, the state’s notification procedure for payment plans is one-of-a-kind. North Carolina also has one of the longest periods of time that individuals have to pay off their bills in installments, according to data from the National Conference of State Legislatures (NCSL).
Let’s look at your options for a state tax payment plan in North Carolina.
Can You Make Payments on North Carolina State Taxes?
Yes, if you obtain permission from the state’s DOR, you may set up a tax payment plan in North Carolina. You can only start a state of North Carolina tax payment plan after receiving an official notification regarding unpaid taxes.
You will then be permitted to request an Installment Payment Agreement to avoid collection action.
Can You Pay North Carolina State Taxes in Installments?
Yes. You can pay your taxes in installments if you have been granted an extension by the IRS to file your tax return and pay what you owe.
The North Carolina Department of Revenue offers several payment plans for state income tax payments, including monthly installments, quarterly payments at year’s end, or annual payments during January each year.
Here’s the breakdown for North Carolina Installment Payment Agreements for individual taxpayers:
- Less than $1,000: 15 months.
- $1,000 to $6,999: 30 months.
- $7,000 to $49,999: 40 months.
- $50,000 or more: 50 months.
All installment contracts given to businesses have a 12-month payback period. This is true regardless of the amount owed.
Keep in mind that you can only apply for one of these installment plans after receiving formal notification from the North Carolina Department of Revenue.
What Are the Conditions of the North Carolina Tax Payment Plan?
We’ve already gone over that you’ll need to get an official letter notifying you that you owe taxes.
If you want to start a North Carolina tax payment plan, there is one more requirement.
All tax returns must be current. Thankfully, if this problem is preventing you from obtaining relief, you can simply submit all outstanding returns with the help of a tax professional. Here’s a closer look at the remaining conditions you’ll need to agree to:
- You must have a bank account.
- You must file and pay all new taxes during the term of your agreement.
- You must agree to enroll in automatic payments.
- You must agree to provide any information that is requested by the Department of Revenue.
In North Carolina, only automatic electronic debits via bank accounts may be used to make installment payments.
That means that you must have a checking or savings account in order to enroll.
If your application is accepted, you must fulfill the conditions of your plan or face penalties such as wage garnishments and tax warrants if you don’t make payments or keep to the provisions.
Who’s Eligible for a North Carolina State Tax Payment Plan?
Anyone who owes taxes may apply for a payment plan. Businesses and individuals in North Carolina can take advantage of installment payment agreements. In most situations, no minimum or maximum tax debts are needed.
What Is the Process for Arranging a Tax Payment Plan in North Carolina?
The North Carolina Department of Revenue offers a form for requesting an Installment Payment Agreement. However, you may be required to submit additional information.
Individuals can use the Collection Information Statement for Individuals (Form RO-1062). Businesses should use the Collection Information Statement for Businesses (Form RO-1063).
When you submit financial information to the North Carolina Department of Revenue, it’s a good idea to seek advice from a tax expert.
How Can We Help?
Get your North Carolina state tax payment plan application completed with the help of a licensed tax professional.
A licensed tax professional will help you review all of your options and comply fully with North Carolina’s requirements for tax payment plans.
They’ll work tirelessly to assist you in completing the procedure as quickly and efficiently as feasible while avoiding further tax fines. Get started right away!