Can You Make Payments on Arizona State Taxes?
Yes, Arizona allows taxpayers to pay tax liabilities via full or partial payments. This is handled through the Arizona Department of Revenue (ADOR). Once accepted, you must make all payments on time without exception. You may be subject to enforcement actions by ADOR if you fail to make a payment on time. Penalties can include levies and wage garnishments.
Can You Pay Arizona State Taxes in Installments?
The Arizona Department of Revenue’s tax payment plan works very similarly to the IRS Installment Agreement (IA) plan that many people know about. No payment plan will be granted to someone owing $100 or less. You must pay your debt in full if you owe $100 or less. Here is the payment schedule for all other debt amounts:
- $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)
It’s possible that you’ll need to negotiate with the Arizona Department of Revenue if you owe more than $5,000. You’re generally given 24 months to pay off larger debts under an Arizona state income tax payment plan. However, you may be able to set up an extended individualized payment plan with the help of a tax professional.
What Are the Conditions of the Arizona Tax Payment Plan?
The main condition to be aware of is that you will be expected to make full payments on time. ADOR reserves the right to automatically cancel your arrangement for returned payments or insufficient funds. A $50 Return Payment Penalty will be added to your account. A tax lien targeting your wages, bank accounts, and additional assets could be filed if you’re delinquent on a state of Arizona tax payment plan. Your payment plan can also be canceled if you accrue new tax debt or fail to file a tax return on time. An Arizona state tax payment plan cannot be extended once it’s in place. You will not be permitted to add future tax balances to an existing agreement.
Who’s Eligible for an Arizona State Tax Payment Plan?
A tax payment plan Arizona taxpayers can use to pay back debts is open to all taxpayers. However, ADOR may deny you a payment plan after reviewing your application and accompanying financial details. ADOR may request that you make a payment in full if your financial information shows that you can reasonably secure a loan to pay off your tax liability.
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 (Arizona Form 140-IA). ADOR may ask you to complete a Collection Information Statement (CIS) if you request a state installment agreement. 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 are applying as a business owner, it will be necessary to fill out the designated Collection Information Statement for Businesses. This is a comprehensive document that requests details regarding business operations and financials. It’s recommended that you complete this document with the help of a tax professional. The terms of business installment agreements are similar to individual agreements. However, the length of an agreement is based on the amount owed.
How Can Tax Group Center Help?
Tax Group Center will guide you through applying for an Arizona state tax payment plan. We’ll explore your options for payment based on the amount owed and your personal circumstances. If applicable, we can help you to apply for a Taxpayer Assistance Order (TAO) to prove that you’re facing significant hardship that prevents you from paying your tax bill. Our team will work hard to get you on the path to a payment plan or relief option as quickly and easily as possible. Call our office today!