You may be curious to know what your options are if you owe state taxes in Pennsylvania. The Keystone State is actually one of the more complex states for unlocking payment options for back taxes and other tax problems. However, a Pennsylvania state tax payment plan is possible if you’re willing to take time to navigate your options with a tax pro by your side.
Pennsylvania State Tax Payment Plan
All Pennsylvania state tax collections and payments are handled through the Pennsylvania Department of Revenue (DOR). If you’re late on your state taxes, you’ll receive a notice from the DOR asking you to respond. You can generally expect collections efforts to begin within 90 days of that notice if you don’t respond with a payment or request for a payment plan.
Can You Make Payments on Pennsylvania State Taxes?
Yes, you can use the PA state income tax payment plan to pay off what you owe in state taxes over time. However, this is one the tougher states in terms of enrollment because there’s no online process. The Pennsylvania DOR also doesn’t publicize many details regarding its criteria for acceptance into a payment program. This is why bringing in a tax professional to help you become enrolled can be a wise decision.
Can You Pay Pennsylvania State Taxes in Installments?
The PA state tax payment plan is called the Deferred Payment Plan (DPP). Unlike most states, Pennsylvania does not supply an “open” form for applying for entry into an installment agreement. Generally, the DOR does try to be flexible with the terms of its DPPs to ensure that taxpayers can realistically make monthly payments. The DOR also tends to keep interest charges reasonable.
What Are the Conditions of a Pennsylvania Tax Payment Plan?
The primary condition of being accepted into a Pennsylvania tax payment plan is that you’ve filed all tax returns up until this point. If you have unfiled taxes, a tax professional can get you up to date relatively quickly. The Pennsylvania DOR does typically ask for an upfront payment totaling 20 percent of your total tax debt. The typical duration of a tax payment plan in Pennsylvania is just five months. If this is unrealistic, the DOR may work with you to negotiate different terms.
Who’s Eligible for a Pennsylvania State Tax Payment Plan?
Both individual taxpayers and businesses are eligible for tax payment plans in Pennsylvania. However, the Pennsylvania DOR is rather vague about the criteria used to determine who is considered eligible. There also isn’t a public formula to look at to see where there’s room to negotiate monthly payments based on the full amount you owe.
What Is the Process for Creating a Tax Payment Plan in Pennsylvania?
Anyone seeking a tax payment plan from the Pennsylvania DOR can either call the DOR Collection Unit or visit a district office in person to request a DPP. For individual taxpayers, the DOR Collection Unit number is 717-783-3000. The number for setting up payment arrangements for business tax liabilities is 717-783-8434. District offices where requests can be made in person are located in Allentown, Erie, Greensburg, Harrisburg, Norristown, Philadelphia/Center City, Philadelphia/Northeast, Pittsburgh/Downtown, Pittsburgh/Greentree, Reading, Scranton, and Sunbury.
Move Forward With Your Pennsylvania State Tax Payment Plan
The Pennsylvania DOR puts taxpayers in a bit of a defensive posture due to the fact that so little information is available about the process of how to be granted a Deferred Payment Plan (DPP). At Tax Group Center, we’re confident that we can get you on the track to being approved for a payment plan or relief option to help you pay off your personal or business state tax debt. Reach out today for a consultation with our team of IRS and state tax specialists!