Requesting a Payment Plan for Your Delinquent Tax Liability
We will be happy to work with you to establish a mutually agreeable payment plan for your delinquent tax liability. To do this, you will need to complete this application to request a payment plan. If we approve your request and payment plan application, you will be able to make regular payments to resolve your tax balance.
Before you begin the application process, we want you to know that payment plans usually are not in a taxpayer’s best interest, due to the substantial penalty and interests rates imposed by law. Alternative financing will almost always be to your advantage. Please take this into consideration when determining if a payment plan is right for you.
Here are some things you should know if you decide to work with us to establish a payment plan.
- Typically, a payment plan for individual income tax is required to be set up as direct automatic deduction from a checking or savings account.
- We will consider short term payment plans on past due taxes when other payment options are not available.
- Generally, we do not accept plans for under $50 per month or for more than one year (12 monthly payments). If you propose to make monthly payments of less than $50 or to make payments for more than twelve months, we will require a financial statement from you as part of our review prior to accepting your payment plan offer. In such instances a Warrant for Distraint (tax lien) is typically filed to protect the state’s interest in the outstanding tax liability.
- A Warrant for Distraint is recorded by the clerk of district court as a judgment, and creates a lien on all of your personal and real property in the county where the property resides. The judgment may adversely affect your credit rating and inhibit your ability to get loans, purchase insurance, and receive security clearances for 10 years or more.
- As a condition of all payment plans, we require that you do not become delinquent on any other taxes during the term of your payment plan. We will not allow new tax liabilities to be added to your existing payment plan. You are required to pay any new tax balances when due.
To begin the application process, we ask that you complete the form, Request for Payment Plan Application, and submit it to us. Your application may be mailed, e-mailed or faxed. If you have questions or would like help from our office, please call us at (406) 444-6964. When you call, please have your most recent tax notice available for reference.
