While Utah residents pay a low property tax rate, they make up for it in sales taxes. In Utah, residents are expected to pay anywhere from 6 to 9.05% in sales tax. When it comes to personal income taxes, Utah residents will pay a flat rate of 4.95%.
Has your tax bill crept up on you unexpectedly? Did you get a tax bill that you know you can’t pay? If you know you owe a tax debt, then the worst thing you could do is ignore the situation. If you ignore your debt, then the state of Utah or the federal government could take action against you. Rather than suffer that type of fate, consider signing up for a Utah state tax payment plan.
Are you not sure how to set up a payment plan for Utah state taxes? Learn everything you need to know below.
Can You Make Payments On Utah State Taxes?
While a flat 4.95% income tax rate might not seem like much, the amount you owe can really add up if you don’t plan ahead for paying off these taxes on Tax Day. If you’ve received a massive tax bill that you know you can’t pay off, the good news is that you can request to be put onto a Utah income tax payment plan to pay off your debts.
Once you submit to such a plan, you’ll be considered in good standing with Utah’s State Tax Commission office. That means you won’t need to worry about collection efforts so long as you stay current with your plan. The state still has the authority to file a tax lien against you if you’re on a payment plan, but it’s not likely they’ll do that if you’re making payments.
Can You Pay Utah State Taxes in Installments?
When you submit to a Utah tax payment plan, you’re expected to start paying off your debt in monthly installments. As you’re paying down your tax debt, keep in mind that Utah will continue to charge interest and penalties on top of any money you owe. With that in mind, don’t be surprised if it seems like your tax bill is growing or not going down as quickly as you expect it to.
What Are the Conditions of the Utah Tax Payment Plan?
If you obtain a payment plan, then you must ensure you follow the terms and conditions of the plan. If you don’t, then you could suffer consequences in the form of additional fees, a tax lien, a garnishment of your wages, and a seizure of your property.
Who’s Eligible for a Utah Tax Payment Plan?
If you’re a resident of Utah, you likely have many questions—like whether you’re eligible for a tax payment plan at all. Not every person who owes back taxes will be able to get onto a plan. To be eligible, your returns must be current. On top of that, the Utah State Tax Commission must approve your request.
What Is the Process for Arranging a Tax Payment Plan in Utah?
So, how can you get started with this state tax debt relief plan? First things first—you’ll need to ensure that you’ve filed all your tax returns to date. Once the state can see how much you owe, you can request a payment plan by filling out a Request Waiver. You can also contact the Utah State Tax Commission directly.
From there, agents will determine if you’re eligible for a Utah tax payment plan. If you are, then you’ll receive an e-mail with the terms and conditions of your agreement.
How Can Tax Group Center Help?
You’re not required to consult with tax attorneys about your situation in order to apply for a payment plan. Still, it’s a good idea to talk about your situation with tax experts if you haven’t filed your taxes in a few years, you owe a significant amount of money to the state, or you’ve already gotten penalized or suffered consequences due to your delinquent tax status.
Do You Qualify For a Utah State Tax Payment Plan?
A Utah state tax payment plan will help you pay off your tax debt over time. You won’t have to sacrifice a huge lump sum of money at one time, and you won’t have to worry about the threat of retribution from the state government. Collection efforts will stop, and you’ll feel assured that you’re making progress.
Despite all those benefits, it can still be unnerving to contact the Utah State Tax Commission and admit you can’t pay off your bill. It’s difficult enough to admit you need help! The good news is that there are experts, like the professionals at Tax Group Center, who want to meet you where you are and help you settle your tax debts once and for all. Contact us today to get started on your financial journey towards freedom.