Are you concerned about a Virginia tax bill? It’s important to take action quickly to avoid the potential penalties that can be enforced by the Virginia Department of Taxation when unfiled returns or unpaid taxes are in play. The consequences of failing to pay your state taxes on time in Virginia without putting a payment plan in place can include wage garnishments, property levies, property liens, interest, and other penalties. It may be time to seriously consider requesting a Virginia tax payment plan if you’re unable to pay a tax bill in full.
Can You Make Payments on Virginia State Taxes?
Yes, the Virginia Department of Taxation allows for Virginia state tax installment payments under certain conditions. However, you must request enrollment in a payment plan. You must receive your tax bill before you can set up a Virginia tax payment plan.
Can You Pay Virginia State Taxes in Installments?
You do have the option to make installment payments on the taxes you owe if you meet certain conditions. First, you must owe less than $25,000 in taxes, penalties, and interest to be approved using Virginia’s online “fast track” for installment plans. You also cannot have any disqualifying collection actions tied to your account. This includes a revocation, criminal warrant, or bond. In addition, a tax lien issued to an employer or bank may also disqualify you from online registration. Bankruptcy could also be a barrier. The good news is that it’s very possible that you’ll still be able to activate an installment agreement even if you have a barrier in place as long as you follow the correct steps for setting up a plan with help from a Virginia Department of Taxation representative. It becomes very important to seek help from a tax professional if there are obstacles in place that require extra steps before approval can happen.
What Are the Conditions of the Virginia Tax Payment Plan?
Payment plans are generally available to anyone who owes $25,000 or less in taxes. It’s important to manage your payment plan carefully to avoid defaulting. This means making all required payments on time. In addition, you’ll need to file all returns on time without missing any future tax payments to keep your payment plan current. It’s possible that your payment plan will be canceled if you fail to stay current or meet all future tax obligations during the lifespan of the plan. You must also agree to allow the Virginia Department of Taxation to apply all future state refunds toward your balance until the end of your payment plan. Please note that you may be subject to penalties and collection efforts if your plan is canceled due to your failure to comply with the terms of the agreement.
Who’s Eligible for a Virginia State Tax Payment Plan?
Both individuals and businesses are eligible for tax payment plans in Virginia. Being unable to pay your tax bill in full is the main requirement. Generally, you’ll need to owe less than $25,000 to enter into a payment plan.
What Is the Process for Creating a Tax Payment Plan in Virginia?
You will be asked to supply some basic information when enrolling in a payment plan. You’ll need to supply your Social Security number, date of birth, and a copy of your most recent Virginia tax return to become enrolled as an individual. For businesses, the requirement includes your Federal Employer ID number (FEIN), your 15-digit Virginia Tax account number, and your most recent Virginia tax return.
How Can Tax Group Center Help You With a Virginia State Income Tax Payment Plan?
Tax Group Center is here to help if you’d like to set up Virginia state tax installment payments because you’re unable to pay what you owe in taxes in full. There’s no need to put off requesting a Virginia tax installment agreement when the state’s tax department is so reasonable about providing options. Failing to take action as quickly as possible with the help of a qualified, knowledgeable tax professional could leave you vulnerable to unnecessary penalties and complications. Our team is equipped to help you get a payment plan in place because we have 30 years of experience doing exactly that for our clients. In addition to helping you set up your payment plan, we can also help you to stay current with all future tax obligations to ensure that you stay in good standing with the Virginia Department of Taxation. Reach out to Tax Group Center today to get started!