By Arizona Department of Revenue
The Arizona Department of Revenue (ADOR) is ready to work with taxpayers who have filed their 2018 taxes but need some extra time to pay what they owe. The department says there are installment agreement options available.
A taxpayer can contact ADOR and request a payment plan over the phone or fill out Form 140-IA, which outlines several monthly installment plan options for up to a year. The Department of Revenue will help the customer determine a payment level that is reasonable for the taxpayer’s particular circumstances.
The agency will begin sending out notices to taxpayers owing on their 2018 taxes in June.
Historically, following the April 15 filing deadline, approximately 15,000 payment agreements are typically set up with ADOR. For the most recent tax filing season, about 3 million individual income tax returns have been filed.
By law, taxpayers failing to pay owed taxes would be subject to interest and monthly late payment penalties.
If there is an issue making a payment, taxpayers can request a monthly installment plan by filling out Form 140-IA.
- While on a payment plan, taxpayers cannot incur any new liabilities.
- Payments must be made on time per the payment arrangement.
- Payment plans are subject to review at any time and may require updated financial information or additional documentation.
- Taxpayers may be asked to provide detailed financial information, including income and employer, spouse’s income and employer, number of dependents, monthly expenses, banking information and other pertinent information to determine ability to pay the liability.
- Taxpayers could be asked to provide a complete written Financial Statement.
- Taxpayers will be provided 30 days to file all delinquent returns. Tax Returns & Forms
- If a taxpayer cannot make a payment as scheduled, the individual can contact the department and advise a collections representative when he or she will be making the payment.
- If the terms of the arrangements are not kept, the department will consider enforcement action, such as the filing of a tax lien or levying wages, bank accounts or other assets.
- Depending upon the amount owed and the length of time it will take to repay a liability, a tax lien may be filed.