Do you have a problem with late or unpaid state taxes in Illinois? An Illinois state tax payment plan may be available to you. Illinois happens to be one of the friendlier states for tax payment plans due to the fact that it has a “nearly” automatic acceptance policy if you meet some basic criteria. However, the counterbalance to that is that penalties aren’t necessarily off the table just because 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, it’s possible to set up a payment installment plan with the Illinois Department of Revenue if you have a tax delinquency. The big condition to know about is that you must be fully current with filing all of your tax returns before you can utilize this option. The Department of Revenue may also investigate your financial state.
Can You Pay Illinois State Taxes in Installments?
Yes, the Illinois Department of Revenue allows those who cannot pay tax debts due to financial hardship to make installment payments. The default length for a tax payment plan in Illinois is 12 months. It’s possible to have a plan extended to 24 months in some cases. Terms like the length of your payment plan and monthly totals will vary based on your financial standing.
What Are the Conditions of the Illinois Tax Payment Plan?
You will typically be required to pay back your debt within 12 months. However, the Illinois Department of Revenue can ask you to pay back the full amount if it decides that you are in a position to do so after reviewing your financial records. The Department of Revenue will consider you able to pay back your tax debt in a lump sum if the agency determines that you could qualify for a loan for the full amount. That means you will be expected to use a loan to repay a bank after paying the state back in full.
Unfortunately, you are not necessarily sheltered from liens once you’re accepted into an Illinois state income tax payment plan. The Department of Revenue may place a lien on your property and assets if the agency decides for some reason that you cannot be trusted to pay your installments. The Department of Revenue reserves the right to add a lien to an existing Illinois tax payment plan at any time.
Who’s Eligible for an Illinois State Tax Payment Plan?
All taxpayers who are current with their tax returns are eligible to apply for a state of Illinois tax payment plan. Generally, an installment agreement will be automatically accepted if you owe $5,000 or less in taxes. It is likely that you’ll be asked to submit extensive information and documentation regarding your income, assets, and liabilities if you owe more than $5,000.
What Is the Process for Arranging a Tax Payment Plan in Illinois?
An individual seeking a payment plan needs to fill out and submit the Financial and Other Information Statement for Individuals (Form EG-13-I). Businesses seeking installment plans must fill out the Financial and Other Information Statement for Businesses (Form EG-13-B). The Illinois Department of Revenue doesn’t provide many details about the criteria it uses to make decisions regarding approval. However, applicants are encouraged to provide “good faith” down payments to demonstrate commitment to adhering to installment agreements.
How Can Tax Group Center Help?
You can only benefit from submitting your application properly and completely. This increases your odds of having your petition approved without the potential for liens and penalties being tacked on. At Tax Group Center, we’re familiar with the tax payment plan Illinois taxpayers use to pay back tax debts over time. We’ll work hard to help you get on the road to getting your tax debt paid off. If necessary, we can help you get all late tax returns filed to qualify for an Illinois tax installment agreement. We can also explore all other potential options for state tax debt relief. Don’t hesitate to give us a call today to get the process moving forward.