Most of the revenue collected by Missouri State officials comes straight from personal income taxes. With that in mind, if you owe state taxes, you can expect to hear from the Missouri Department of Revenue sooner rather than later.
The best way to make a Missouri Department of Revenue tax payment is to pay everything in one lump sum. Doing so isn’t always possible, though, especially in today’s economy.
The good news is that you’re likely eligible to apply for a Missouri tax payment plan if you’re struggling with tax problems. Learn everything you need to know about how to pay state taxes in Missouri below.
Missouri State Tax Payment Plan
Missouri is considered one of the friendlier states when it comes to providing payment options for struggling taxpayers who want to avoid harsh penalties. Taxpayers can generally apply, set up an account, and make payments fully online. However, it’s very important to comply with all requirements fully when applying for a Missouri state tax payment plan to ensure that you don’t face rejection or default.
Can You Make Payments on Missouri State Taxes?
Yes. You can make payments through a Missouri Department of Revenue payment plan if you’re having tax problems. The Missouri Department of Revenue accepts online payments in the form of a credit card or eCheck (electronic bank draft). However, you can only begin making payments once you have been accepted into the Missouri state income tax payment plan via your own installment agreement (IA).
Can You Pay Missouri State Taxes in Installments?
The Missouri state tax payment plan is referred to as the state’s installment agreement program. This program allows you to pay what you owe using digital payments. Any taxpayer who enters into an installment agreement in Missouri should be aware that the program does charge interest, which will be calculated using the state’s current interest rate. Your personal rate may fluctuate by year.
Payment plans last for 36 months.
What Are the Conditions of a Missouri Tax Payment Plan?
The Missouri Department of Revenue generally takes an inviting approach to its payment program, but it does have some criteria.
A Missouri income tax business payment plan can only be created for delinquent balances totaling $50 or more. You’ll need to make a full payment online via credit card or eCheck to clear your balance if you owe less than $50 in taxes.
There are three big stipulations to know about if you’ll be applying to the program as either an individual or business. First, you must be current with all tax filings to be eligible to enter the Missouri state tax payment plan. Taking care of this can often be as simple as filing your unfiled taxes. You must also have less than two previous defaulted agreements. Lastly, defaulting on taxes by missing payments or incurring new tax debts while your payment plan is ongoing will result in your account being canceled.
Who’s Eligible for a Missouri State Tax Payment Plan?
Any individual or business owing Missouri taxes will generally be eligible for the Missouri state income tax payment plan as long as all current tax returns are filed. The duration of an installment agreement is the same for individuals and businesses.
Generally, it’s a good idea to sit down with a tax professional to ensure that you have clearance to apply based on your tax status and history.
What Is the Process for Creating a Tax Payment Plan in Missouri?
Entering the Missouri income tax payment plan is a very streamlined, digital process. To begin, you’ll need to gather your Social Security number (SSN) if you’re applying as an individual taxpayer. Businesses will need to supply their business tax identification numbers. You should also have your most recent tax notices with IRS PIN and a credit card on hand when you begin the application process.
How To Pay Missouri State Taxes Online
Now that you have a better idea of what it takes to set up a payment plan, you might wonder how difficult it is to pay Missouri state taxes online.
Electronic filing in Missouri works with the IRS’s electronic filing system. In other words, you’ll be able to pay your taxes online from your own computer on the official Missouri state website. You’ll be able to pay using a credit card or eCheck. Keep in mind that there will be a small convenience fee if you pay with a card, and there will be a $0.50 handling fee if you pay via eCheck.
Navigate over to the official website, follow the prompts, and make your payment. Upon landing on the page, click on “make a one-time payment.” You do not need to create an account to make a payment. If you have a Missouri tax payment plan, then make your monthly payment amount by following the steps on the online system. If you struggle with any part of the process, contact NCR Payments at (866) 756-6041.
What Is the Interest Rate for Tax Payment Plans in Missouri?
Have you ever wondered what makes people loan out money? How do people make money on loans, anyway?
The answer is in interest payments! Interest is the price you pay on borrowed money. While you didn’t borrow your tax money, you’d better believe that there will be interest fees on top of any money that you owe to the IRS or the Missouri state government.
The typical interest rate for a tax payment plan in Missouri is about 3% as of 2022; in other words, the interest rate for a tax payment plan in Missouri will cost you 3% on your principal balance for each year you fail to pay it off completely. The good news is that the state usually stops penalizing you once you enter into a payment plan.
Get Help Creating a Missouri Tax Payment Plan
At Tax Group Center, we understand how overwhelming it can be to enter into a payment agreement with the state. Our team of tax professionals can guide you through the process of making sure you’re complying fully with all of Missouri’s requirements both during the application process and after you’re accepted. Contact our office today to learn how we can help you get this done quickly and smoothly if you’re looking for relief solutions for state taxes!