You may be curious about your options for setting up a Colorado tax payment plan if you owe taxes. Yes, options are available if you’re unable to pay your tax bill in full. However, it’s important to be aware of how things like penalties and interest can enter the picture when you’re approved for a Colorado Department of Revenue payment plan.
Can You Make Payments on Colorado State Taxes?
Yes, Colorado allows you to request a payment plan through the Colorado Department of Revenue if you are unable to pay your outstanding tax debt. It will be necessary to discuss your options with a collections representative based on factors like how much debt you owe and your current financial situation. The Colorado Department of Revenue’s goal in working out a tax payment with you will be to get your debt paid as quickly as possible.
Can You Pay Colorado State Taxes in Installments?
Yes, you will be able to make payments through an installment agreement once you are approved for a payment plan. An installment agreement in Colorado generally allows you to make monthly payments until your debt is covered in full. While the minimum monthly payment allowed is $25, it’s strongly recommended that you try to pay the maximum amount possible.
What Are the Conditions of a Colorado Tax Payment Plan?
Interest will continue to accrue on a prorated basis during the lifespan of your installment agreement. In addition, any tax refunds that you claim will automatically be applied to your debt balance. This is precisely why paying the maximum amount possible in each monthly installment works to your advantage. You must make all monthly payments owed in full by the due date in order to keep your payment plan valid. In addition, you are required to file and pay any current and future tax returns when they are due in order to keep your payment plan in good standing.
Who’s Eligible for a Colorado State Tax Payment Plan?
Generally, anyone who is unable to pay a tax bill can request a payment plan through the Colorado Department of Revenue. This is actually one of the easier states for getting approved for a tax payment plan as long as you act quickly. The Colorado Department of Revenue will send your agreement paperwork once you’re able to agree on a fair monthly payment amount.
What Is the Process for Creating a Tax Payment Plan in Colorado?
Individuals seeking tax payment plans in Colorado can make requests online or by phone once they receive their tax bills. It’s possible to request a payment plan on this year’s individual income tax debt before you receive your bill as long as you wait until April 15 to make your request. Tax payment plans for business tax debt are also available in Colorado. However, this option can only be requested by speaking with a compliance agent over the phone.
How Can Tax Group Center Help?
Colorado is very much a state that approaches each payment plan on a case-by-case basis. This is something that can potentially work to your advantage if you take the right steps for tax debt relief Colorado taxpayers can use to pay what they owe over time. At Tax Group Center, we 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, lawyers, and tax professionals with more than 30 years of experience. Let Tax Group Center put our experience with creating a Colorado state income tax payment plan to work for you if you’re concerned about an overwhelming tax debt. Don’t let the consequences of not taking care of your state taxes turn your tax situation into a bigger problem than it needs to be! Give us a call today to take action!