Installment Agreement
State
Most debts with the State tax authorities are settled through payment plans. The name of the game with installment agreements is how much you end up paying each month. And how much you end up paying is all based on a simple financial form. If the taxman has his way, you are on the hook for a huge monthly payment. (Often that is the result of trying to handle a tax debt yourself or hiring a big tax relief company.) The main thing we’ve done for the past decade is complete that financial form with our clients’ best interest in mind. If you are looking for affordable payments for your tax debt, please contact us for a free consultation today.
Questions?
Is it easy to get on a payment plan with the state?
For the vast majority of taxpayers, the hardest part about setting up an agreement for past due state taxes is completing and submitting the paperwork. Since most IRS agreements can be set up online, the paperwork is a breeze and makes most State Tax Authorities seem ancient with their snail mail and faxing (the exceptions being the bigger, more IRS-like agencies in CA, CO & NY, where you can set up payments online as well). But for some taxpayers, state governments can and do play a hardball that simply doesn’t fly at the federal level. States have fewer protections in place for taxpayers since Americans can (in theory) choose in which state they live and pay taxes. So you may not get an opportunity for a payment plan, or you may be only granted one payment plan in your entire life (mess things up and you’ll never get another one, is the general gist). If you are worried about setting up payments for your past due state taxes, please contact us today and we’d be more than happy to walk you through the options for your state.
The state revoked my driver’s license—if I get on a payment plan, will they reinstate it or allow me to apply for a new license?
If your tax debt has reached the a level with the State Tax Authority that they have suspended or revoked your license, then simply getting on a payment plan may not do the trick. Again, each state is different, so it depends to whom you owe taxes, but on the whole you are likely on the wrong side of the 8-ball if the state is not granting you a payment plan or if they’ve suspended your driver’s/professional license. Most taxpayers have few issues formalizing agreements for their state debt, so please contact us today if you are getting any pushback to getting your license reinstated. We’d be happy to help.
Do I only need to set up one payment plan or will the State contact me again to adjust payments or formalize a new agreement?
Similar to the IRS, most state taxing authorities reserve the right to terminate or adjust an agreement at their whim. So nothing is set in stone, with states opting for more of a Wild West approach since there are less taxpayers to manage. When there are millions of agreements with the IRS and taxpayers, it’s harder for them to review existing agreements to see if they should be getting more money from taxpayers whose ability to pay changed since the agreement was initiated. States, however, have less inventory and are more likely to challenge a taxpayer to re-establish their financial position several times throughout the course of a payment plan. So even if you are on an affordable agreement now, that may change whenever your case is pulled for review. Call us today for a consultation if you are worried the state will change your payment terms.