Make Monthly Installments If You Cannot Afford to Pay in Full
If you cannot afford to pay your state taxes in full, you may be able to make monthly payments. The Georgia Department of Revenue (DOR) allows qualifying taxpayers to pay individual and business taxes in monthly installments. Here’s what you need to know.
Requirements
The DOR reviews payment plan applications on a case-by-case basis. Typically, you must be able to pay off the tax debt within 60 months (five years), and you must pay at least $25 per month. You also need to meet the following criteria:
- You’re not in an active bankruptcy case.
- You’re not waiting for the DOR to review an offer in compromise request.
- Your account has not been assigned to a private collection agency.
- You have filed all state tax returns for the last five years.
Note that in some cases, the DOR may require you to pay off the taxes sooner. In particular, if you owe business taxes (such as sales or withholding tax), the Georgia DOR may require you to pay off the balance in less than 60 months. The department may also require a downpayment if you want to make monthly payments on business taxes.
How to Apply for a Georgia Tax Payment Plan
You can apply for a payment plan through the Georgia Online Tax Center. You must create an online account and then simply look for the links to request a payment plan. Alternatively, you can file Form GA-9465 (Installment Agreement Request), or you can work with a tax professional.
When you apply, you need to enter the amount of your suggested monthly payment. You also need to choose the due date for your payments. Pick a date when you know that you’ll consistently have funds so that you don’t risk defaulting on your arrangement.
Cost of a Payment Plan
The GADOR charges $100 to set up a payment plan. However, if you authorize the payments to come directly out of your bank account, the fee drops to $50. As of 2023, you can set up a payment plan for just $25 if your income is $22,050 or below.
Making Changes to Your Payment Plan
According to the GADOR website, once your payment plan has been established, you cannot make changes. Instead, if you need to make changes, you should cancel the payment plan and request a new one. You can also make additional payments at any time if you want to get out of debt faster.
However, the instructions on Form GA-9465 (Installment Agreement Request) state that you can request changes to an existing payment plan. You must pay $50 for the changes ($25 if your income is below $22,050), and you must stay current with your existing payment plan until the DOR approves your requested changes.
What to Expect When You’re on a Payment Plan
When you set up a payment plan, the GADOR will stop most involuntary collections against you. For instance, the state won’t garnish your wages or seize your assets. However, depending on the situation, the DOR may still issue a tax lien (state tax execution) to protect its financial interests.
The state may also seize your tax refunds and apply them to your tax debt. Interest and penalties will continue to accrue on your account until you have paid off the entire tax debt.
Moving forward, you must pay all of your state taxes on time and in full. Otherwise, the department can rescind your payment agreement and demand full payment. To ensure you don’t get behind on your state taxes, you may want to adjust your withholding with your employer or ensure that you make estimated quarterly payments if you’re self-employed.
How to Pay Georgia State Taxes
The easiest way to make your monthly payments is to set up direct debits from your bank account. Alternatively, you can sign into your online account every month to initiate the payment. If you owe personal or business taxes, the GADOR also accepts checks, money orders, and credit card payments.
Get Help With Your Georgia State Taxes
At Wiggam Law, we understand how stressful it can be to get behind on your taxes. We also know how complicated and frustrating it is to deal with the IRS, the Georgia Department of Revenue, and other state taxing authorities.
Don’t worry — we can help. When you contact us, we’ll help you find the best resolution possible for your tax issues. Depending on the situation, that may include applying for penalty abatement, setting up payments, or requesting a settlement. If you’re behind on your state or federal taxes, don’t wait any longer to get help. Call us today at (404) 233-9800 or schedule a consultation today.