Are you wondering if there’s a tax payment plan Georgia taxpayers can use when they owe state taxes? Payment options are available if you owe taxes in Georgia. A payment plan will generally stop all tax liens against you in Georgia. However, you may not be sheltered from other penalties and collection attempts. Let’s discuss it all while breaking down how to qualify for a Georgia state tax payment plan.
Can You Pay Georgia State Taxes in Installments?
Yes, Georgia’s Department of Revenue (DOR) offers state payment plans for taxpayers who are unable to pay tax debts in full. An agreement like this is called an Installment Agreement (IA). Your payment agreement allows you to cover your debt over time instead of paying a lump sum. A Georgia state tax payment plan can last for up to 60 months. Plans are available for both individuals and businesses.
What Are the Conditions of the Georgia Tax Payment Plan?
You must apply to qualify for a state of Georgia tax payment plan. However, a request for a payment plan can be denied or canceled at any point. Your Georgia state income tax payment plan could be nullified if you do not follow the terms of the plan. Additionally, some taxpayers are excluded from plans if certain conditions are in place. Here’s a look at what may disqualify you:
- You’re in bankruptcy.
- You have a pending Offer in Compromise (OIC) application filed with the Georgia Department of Revenue.
- You have not filed all state tax returns with the Georgia Department of Revenue.
- Your tax debt has already been assigned to a private collection agency.
It’s important to work with a tax professional if you’re concerned that there are obstacles preventing you from applying for a state of Georgia tax payment plan. It’s possible that getting up to date with filing all late tax returns could put you in a position for acceptance. It’s also possible that errors on your file could be behind a rejection.
Who’s Eligible for a Georgia State Tax Payment Plan?
All taxpayers who aren’t excluded due to the factors listed above are eligible for tax payment plans in Georgia. The Georgia Department of Revenue does not set debt thresholds the way the IRS and some other states do. Additionally, interest and penalties continue to accrue even after you’ve entered into a payment plan for Georgia taxes. Interest and penalties will cease once your debt is fully paid.
What Is the Process for Arranging a Tax Payment Plan in Georgia?
It’s important to know that you cannot change the terms of your payment plan once you set it up. That’s why it’s essential to get the help of a tax professional when initiating the process of arranging a tax payment plan in Georgia. The first step is to simply submit your request. If approved, you’ll receive a letter from the Georgia Department of Revenue. This letter is important because it will detail what you owe, your monthly payment amounts, your total number of monthly payments, and the due date of your first payment. Georgia requires a minimum monthly payment amount of $25 for tax installment agreements. A single request form is used for businesses and individuals.
The Georgia Department of Revenue charges setup fees. The fee for sending funds by electronic funds transfer (EFT) is $50. The fee for arranging a new payment plan using paper checks is $100. It’s possible to negotiate to have the fee dropped down to $25 if your income is less than $22,050.
How Tax Group Center Can Help
Georgia is one of the more complicated states for setting up payment plans because of the fact that penalties and interest are not forgiven. What’s more, a plan doesn’t necessarily shelter you from attempts to get your debt collected. The Georgia Department of Revenue may still try to collect your debt by taking your state or federal tax refunds.
Tax Group Center is here to help you navigate your way through a tax payment plan Georgia taxpayers can use to get debt paid in full over time. Our team will walk you through preparing and submitting your application. We can also advise you on following the terms of your plan to avoid further penalties. Reach out today to get started.