Guide & Help with Missouri Department of Revenue Offer in Compromise

If you have unpaid taxes in Missouri, you may be able to reduce your tax bill through an offer in compromise. An offer in compromise is when the state agrees to settle your tax bill for less than you owe. Essentially, you make an offer, and the state decides if it wants to compromise.

Missouri has strict qualification criteria for offers in compromise, and you may want to work with a tax professional when applying. So that you know what to expect, here is an overview of the process.

Key takeaways

• The Missouri DOR Offer in Compromise lets you settle state taxes for less than owed.
• To qualify, you must submit financial information showing your reasonable collection potential (RCP).
• There is a shorter application for applicants under 125% of the poverty, or under 200% of the poverty line and on social benefits.

 

Reasons for Offer in Compromise

The MO DOR may be willing to accept offers in compromise for the following reasons:

• Doubt as to collectability — There is doubt that you will be able to pay the full tax due.
• Severe economic hardship — Paying the total tax due would cause you extreme financial hardship.
• Doubt as to liability — There is a significant doubt that you owe the tax.
• Exceptional circumstances — Exceptional circumstances, such as a natural disaster or a severe illness, prevent you from paying the tax in full.
• Low income — You cannot afford the tax in full due to having a low income.

The application process varies slightly depending on your situation.

How to Apply for an Offer in Compromise in Missouri

You can use these forms to apply for an offer in compromise in Missouri:

• Form MO-656 (Missouri Individual Income Tax Offer in Compromise)
• Form MO-656B (Missouri Business Tax Offer in Compromise)
• Form MO-656A (Exceptional Circumstances or Low-Income Offer in Compromise)

If you're applying based on doubt as to collectability or severe economic hardship, you should complete all of Form MO-656 or MO-656B. You only need to complete sections one and two if you're applying based on doubt as to liability or exceptional circumstances. Low-income applicants should complete Form MO-656A.

Requirements for an Offer in Compromise

You can apply for an offer in compromise on MO individual income tax and MO business tax — but not for unpaid MO sales tax. The state will only consider your request if you meet the following criteria:

• You have filed all required tax returns.
• You do not have an open bankruptcy proceeding.
• You are current on all estimated tax payments.
• You have included all the documents listed in the application checklist.

You do not need to meet these requirements if you're applying based on doubt as to liability. In that situation, you need to prove to the state that you don't owe the tax, but you can still qualify if you have unfiled returns or are in the midst of bankruptcy.

Filling Out the Missouri Offer-in-Compromise Application

The application for an offer in compromise in Missouri requests basic information about you or your business in section one. Then, in section two, you explain why you need an offer in compromise, and you make your offer. The remaining sections require you to provide in-depth details about your personal and/or business finances. You must list all of your assets, liabilities, income, and expenses. You also need to include proof of income, bank statements, and credit card statements from the last three months. The state may request additional documents if needed.

Making an Offer on Missouri Back Taxes

You can offer to make a one-time payment within 30 days. Or you can offer to do a short-term deferred payment plan of x amount per month over x number of months. If you send a down payment with your offer, the MO DOR will keep the payment. If the offer is accepted, the payment goes toward your offer. However, acceptance of the payment does not require the state to accept your offer. If your offer is not accepted, the payment reduces your balance.

Reasonable Collection Potential

Typically, the state will only accept an offer in compromise if it represents the account's reasonable collection potential (RCP). The RCP is the most amount of money the state is likely to collect on the account. The DOR looks at your assets, current income, and future income to determine your RCP and then subtracts basic living expenses.

For example, if you have non-exempt assets worth $20,000 and you only owe $5,000, the state is unlikely to give you an offer in compromise. However, if you can show that your assets and income are not enough to cover your full tax liability, the MO DOR may be willing to settle your tax liability.

Common Reasons for Rejections

The MO DOR will reject offers in compromise if any of the following situations apply:

• The offer is not fair or reasonable.
• The application is incomplete.
• You have not attached the required documents.
• You have not filed all required tax returns.
• You have a history of non-compliance.
• The tax is related to a crime to which you pleaded guilty.

The state automatically rejects any offers of $0. Again, if you are applying for an offer in compromise, you should try to offer an amount equal to the account's RCP.

Appealing a Rejected Offer in Compromise

If the MO DOR rejects your offer in compromise, the decision is final. You do not have the right to appeal a rejection.

Collection Actions After an Offer is Accepted

Once you pay an accepted offer in compromise, the state will release any tax liens or levies issued against you. However, the state has the right to take any state or federal tax refunds for tax periods through the tax year that the offer is accepted.

Here's an example. Say that you owe $10,000, and in 2021, the MO DOR agrees to accept $5,000. When you file your 2021 tax return, you receive a federal refund of $1,000 and a state refund of $300. The MO DOR will take both of those refunds. Note that the state will not take any amounts that exceed the amount settled.

Default After Acceptance

If the offer is accepted, you must remain compliant with state tax filing and payment requirements for the next three years. If you miss a filing or payment obligation, the Missouri DOR will retract the offer, and you will owe the original balance plus interest and minus any payments you made.

Alternatives to Offer in Compromise

If you cannot qualify for an offer in compromise, you may want to request a payment plan or look into other resolution options. A tax professional can help you negotiate an arrangement with the MO DOR.

Get Help With Missouri Back Taxes

Dealing with back taxes can be scary and frustrating. If you don't make arrangements on your tax bill, the MO DOR may seize your assets, garnish your wages, or take other collection actions.

Protect yourself, your finances, and your business by reaching out to a tax professional. At TaxCure, we have a directory of tax professionals from around the country — contact a Missouri tax pro for help today that has experience with Missouri DOR offer in compromise filings.

• Top Pros that help with Missouri DOR
• Top Pros that help with Missouri DOES
• Missouri Tax Relief Professionals
  • Missouri Enrolled Agents
    • Kansas City, Missouri Enrolled Agents
    • Salem, Missouri Enrolled Agents
    • Saint Louis, Missouri Enrolled Agents
  • Missouri CPAs

FAQs About Missouri Offer in Compromise

Can I get an offer in compromise on multiple Missouri taxes?

Yes, you can apply for an offer on multiple types of tax. You must list all of the taxes when you file your application. If you qualify, you'll be able to settle all of the taxes with a lump sum payment. Talk with a tax professional if you want help navigating your tax debt.

Should I send a down payment with my offer in compromise application?

The MO DOR does not require a down payment with your offer-in-compromise application. If you send a down payment, it will be applied to your offer, and if the DOR doesn't accept your offer, they'll still apply the payment to your tax debt. Acceptance of the payment does not mean that the DOR has accepted your offer, and you cannot get the down payment back once it's sent.

What is a short-term deferred payment plan?

This is when you make monthly payments on a MO offer in compromise. You must note the amount of the monthly payment, the number of months you want to make payments, and the date of your payments. The DOR reviews these requests on a case-by-case basis.

Can I apply for an offer in compromise if I owe taxes due to an audit?

Yes, if you incur a tax liability due to a Missouri tax audit, you can apply for an offer in compromise. However, you still need to meet the required financial criteria. If you disagree with the tax liability and have no more appeal options, a tax professional may be able to help you apply based on doubt as to liability, but that depends on the situation.

Guide to Setting up Missouri Tax Payment Plan

The Missouri Department of Revenue (DOR) offers payment plans to qualifying taxpayers who cannot afford to pay their personal or business tax bills in full. Taxpayers get behind for all kinds of reasons, including filing and not paying, having the DOR adjust their return due to a math error or for another reason, or because they incurred a tax liability during a personal or business tax audit. If you owe back taxes to the DOR, here is what you need to know about installment plans.

Key takeaways

• The MO DOR lets qualifying taxpayers set up payments on back taxes for up to 24 months.
• You may qualify for longer payment plans if you provide the DOR with financial details.
• Payment plans may apply to individual income or business taxes.
• Setting up payments stops the DOR from pursuing unwanted collection actions, but interest will continue to accrue, and the DOR will take tax refunds.
• Work with a Missouri tax pro to set up payments or pursue other options.

Benefits of a Tax Payment Plan

A tax payment plan lets you pay off your Missouri tax liability in installments. For most taxpayers, this is the easiest resolution option, but if you don't qualify, there are other options available. Benefits include:

• Easy online application — if you can pay off the taxes in 24 months, you can set up payments online.
• Stop collection actions — the DOR will not levy bank accounts or garnish wages while you're making payments.
• Spreading out payments over time — you don't have to pay in a lump sum; instead, you can defer payments.

 

Payment Plans on Missouri Back Taxes

The MO DOR offers payment plans for individual income tax, delinquent sales tax, Missouri business tax, and other taxes administered by the Department. Plans have a 24-month term, and you may be required to make a down payment. For example, if you owe $2,800, the state may be willing to accept a $400 down payment followed by 24 monthly payments of $200. Note these are just sample numbers.

You may be able to negotiate a longer payment plan in some situations, but the MO DOR does not advertise longer terms on its website. You will need to contact the DOR directly if you need more than 24 months. To get more time, you usually need to submit extensive financial information.

How to Apply for a Tax Payment Plan in Missouri

You can apply for a payment plan by calling the MO DOR at (573) 751-7200. Or, you can request an Internet Installment Agreement online. Ensure you have your Social Security Number and the PIN from your last notice if you want to complete the online application.

Alternatively, you can apply using Form 4338 (Individual Income Tax Payment Installment Request). Form 4338 is a concise one-page form. It requires your name, Social Security Number, and contact information. Then, you note the tax due, your downpayment, and the amount you want to pay every month.

Making Payments on Missouri Back Taxes

The state generally requires you to make payments with a direct debit from your bank account. If you submit the paper application, you must include your checking account details so the payment plan can begin immediately if accepted.

You can also make payments with a debit or credit card online. The MO DOR charges a convenience fee between $1.25 and $2.15 for payments under $100. If your payment is $100 or more, the processing fee is 2.15%.

Interest and Penalties on Payment Plans

Once you set up a payment plan, the state will not assess additional penalties on your account. Typically, the state's penalties are 5% of the balance for unfiled returns, up to 25% of the balance. The state also assesses a one-time 5% penalty for paying taxes late. Interest will continue to accrue on your account while you make payments. The MO DOR adjusts its interest rate annually, and as of 2026, the interest rate is 7%.

Additional Documentation Required for a Payment Plan

Generally, the state does not require any additional documentation if you apply for a payment plan. Again, however, if you need more than 24 months to pay off your balance, you may be required to make full financial disclosure. In this case, you should be prepared to provide proof of income and bank statements for the last three months and any other information requested by the MO DOR.

Conditions for a Missouri Payment Plan

You can only receive a payment plan if you are current on all filing obligations. If you have unfiled returns, you can file them online. Or, you can submit your unfiled returns with Form 4338. If the state has already filed a tax lien against you, the lien will generally stay in place until you have completed the payment plan and paid the tax liability in full. However, if you set up a payment plan with direct debit before the state issues a tax lien, you may be able to avoid it.

In most cases, the state will not accept your payment plan if you have a history of defaulting on payment plans. Typically, you will not get a payment plan if you have defaulted on more than one agreement in the past.

Defaulting on Your Payment Plan

If you miss a payment, your Missouri tax payment plan may go into default. You will also go into default if you fail to file or pay a current tax liability. If your payment plan goes into default, the MO DOR can start collection actions against you.

Get Help With Missouri Back Taxes

If you owe back taxes in Missouri, you may want to reach out to a tax professional. They can help you identify the best resolution method for your situation, and they can negotiate with the MO DOR on your behalf. To learn more, contact a Missouri tax pro today.

• Top Pros that help with Missouri DOR
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• Missouri Tax Relief Professionals
  • Missouri Enrolled Agents
    • Kansas City, Missouri Enrolled Agents
    • Salem, Missouri Enrolled Agents
    • Saint Louis, Missouri Enrolled Agents
  • Missouri CPAs

FAQs about Missouri Tax Payment Plans

What if I can't afford a payment plan on my Missouri back taxes?

Consider looking into an offer in compromise. That is when the DOR agrees to settle your tax liability for less than owed. The application process is very involved, and you must prove that your offer is the most you can afford to pay. There's a shorter application for taxpayers under a certain income threshold.

What is a stipulated payment plan in Missouri?

A stipulated payment plan is when the DOR reviews your plan closely to make sure it meets the Department's requirements. Typically, if the DOR has already filed a tax lien or revoked your sales tax license, you can only qualify for a stipulated payment plan. That requires a 25% down payment and only allows payments for up to 12 months.

Will the Missouri DOR file a tax lien if I set up a payment plan?

If you set up payments before the DOR files a tax lien, they may not file one against you. After a tax lien is filed, you'll have to pay off the balance in full to get the tax lien released and withdrawn from the public record.

Missouri Tax Resolution Options & Consequences of Owing Taxes

The Missouri Department of Revenue (DOR) collects state income tax, corporate and franchise tax, sales and use tax, and other personal and business taxes. If you don't pay your state taxes, the DOR can issue liens, seize assets, garnish wages or bank accounts, or take other collection actions. The state may also send your account to a collection agency or a prosecuting attorney.

 This guide outlines the state's tax resolution options and then looks at what can happen if you don't pay your taxes in Missouri.

Key takeaways

• The Missouri DOR collects individual income tax, corporate income tax, withholding tax, sales and use tax, and special industry taxes.
• Unfiled returns lead to penalties and state tax assessments.
• Unpaid taxes lead to penalties, tax liens, and bank or wage garnishments.
• The DOR may audit any returns filed with the agency.
• To find help with Missouri tax problems, use TaxCure to find a professional with the right experience. 

Tax Resolution Options in Missouri

If you have unpaid taxes in Missouri, you should try to make arrangements before the state starts collection actions on your account. The state offers several options for taxpayers with outstanding liabilities.

Payment Plans on Missouri Tax Liabilities

The Missouri DOR offers payment plans to individuals and businesses that cannot pay their taxes in full. Missouri DOR calls their payment plans Internet Installment Agreements. Missouri's tax payment plans allow you to pay off your tax bill in monthly installments over 24 months. You can sign up online or by calling the MO DOR at (573) 751-7200. Make sure you have your Social Security Number and the PIN from your notice.

Missouri Offer in Compromise 

An offer in compromise lets you settle your tax bill for less than you owe. Missouri will accept offers in compromise on some tax liabilities but only if the amount offered reflects the account's reasonable collection potential (RCP).

RCP refers to the most money the state is likely to be able to collect. The state looks at all your assets, income, and future income, and then it makes a small number of allowances for living expenses. Obtaining an offer in compromise is a long and detailed process, and you may want to work with a tax professional. The state also offers a short offer-in-compromise application if your income is 125% of the federal poverty level. You may also use the short form if your income is 200% of the federal poverty level and you're on a fixed income, receive public assistance, or have significant medical issues.

Innocent Spouse Relief

The MO DOR does offer some relief for people who filed returns jointly, but it does not refer to the program as innocent spouse relief. If you want to split the unpaid tax liability on a jointly filed state tax return, you need to contact the DOR directly.

Hardship Status

If the MO DOR garnishes your wages or your bank account, you may apply for hardship status to get the garnishment stopped or reduced. To apply, you need to complete Internal Revenue Service Form 433-A for individuals or Form 433-B for businesses and include three months' worth of financial documents.

Penalty Abatement

Tax penalties in Missouri can be significant. State law allows the DOR to add a 100% penalty for employers who willfully attempt to evade income tax or sales or use tax. Late filing penalties are 5% per month, up to 25% and late payment penalties are 5% — together, these penalties can get up to 30% of the tax liability. Unfortunately, the state does not advertise any penalty abatement programs, but you can request penalty relief if you have reasonable cause.

You may be able to have penalties abated through the offer-in-compromise program, or a tax professional may be able to help you get penalties removed from your account.

Appeals Process for Missouri State Taxes

If the state adjusts your tax bill, you will receive an Assessment of Unpaid Tax. You can dispute the amount due by filing an official protest within 60 days. You have 150 days if you are outside of the United States. The state will review your account and issue a Final Determination. At that point, you have 30 days to file an appeal with the Administrative Hearing Commission (AHC). If you disagree with the AHC's determination, you have another 30 days to appeal your case through the state court system.

Missouri Tax Amnesty Program

At the time of writing, Missouri does not have an active state tax amnesty program. The state last offered tax amnesty in Fall 2015. Amnesty programs allow taxpayers to come forward and pay unpaid taxes without facing penalties or prosecution.

Missouri DOR Voluntary Disclosure Program

The MO DOR offers a voluntary disclosure program. If the MO DOR has not contacted you about your unfiled taxes, you may be able to use this program to file and pay. You can apply using Form 5310 (Application for Voluntary Disclosure Agreement).

If you make a voluntary disclosure, the state will not assess penalties on your account, and the MO DOR will only consider the last four years. However, if you have collected taxes from customers (sales tax) or employees' paychecks (withholding tax) and not remitted them, the state will look back further than four years. Additionally, you cannot use this program if you have filed a return but underreported taxes.

Consequences of Back Taxes in Missouri

The MO DOR uses a range of collection actions to deal with unpaid taxes, and the state will continue to pursue the tax liability until it is paid in full. Even if you anticipate a tax refund that could cover your outstanding tax liability, the state will still not pause collection actions.

Here are some of the measures Missouri uses to collect unpaid tax bills.

Missouri Department of Revenue Contact Information

• General Inquiries (Individuals and Businesses): 573-751-3505
• Business Taxes: 573-751-5860
• Collections: 573-751-3505
• Website: Missouri Department of Revenue

Missouri Tax Liens

A tax lien is a legal claim to your property. The MO DOR can attach liens to your real or personal property if you have unpaid state taxes. A lien can stop you from selling or transferring property until you have resolved the liability. If you sell property with a lien attached, the proceeds go to the lienholder.

To get the lien removed immediately, you can pay the tax in full with a cashier's check, money order, guaranteed bank check, or an escrow check. If you pay by any other method, the state will take six to eight weeks to remove the lien.

Garnishment for Tax Liabilities in Missouri

In Missouri, the state can garnish your wages or bank accounts for unpaid taxes. If the courts order a garnishment, your financial institution or employer will have to send your money to the DOR.

The MO DOR is legally allowed to garnish up to 100% of the funds in your bank account and your wages. However, in most cases, the state only garnishes 25% of your net pay, which is your pay after deductions such as taxes, healthcare premiums, and retirement contributions.

Tax Penalties

The MO DOR assesses a 5% penalty per month up to 25% of the unpaid balance if you don't file your tax return on time. The state also charges a one-time 5% penalty if you pay your taxes late. MO DOR assesses both penalties the first day you are late.

For example, if you file your return and pay your tax a day late, you will face both a 5% failure-to-file penalty and a 5% failure-to-pay penalty. On a $10,000 tax bill, these penalties are $1000. In contrast, if you pay and file your return six months late, you face the maximum failure-to-file penalty of 25% plus a 5% failure-to-pay penalty. This brings your penalty to $3000 on a $10,000 tax bill.

The MO DOR also assesses simple interest on your account. As of 2026, the interest rate is 7%. You can use the state's calculator to determine the interest and penalties on your outstanding balance.

Other Tax Collection Enforcement Actions

If you have unpaid taxes in Missouri, the state can claim your state and federal tax refunds. If your business owes sales tax, use tax, corporate income tax, or withholding tax, the state may take your personal income tax refund to cover these liabilities.

Notices for Unpaid Taxes in Missouri

If you have unpaid taxes in Missouri, the state will send the following notices:

• Balance Due, Adjustment, or Non-Filer Notice — You will receive one of these three notices depending on if you owe a balance, had your return adjusted, or failed to file. 
• Assessment of Unpaid Tax —The state will send this assessment if you don't respond to the first notice. You have 60 days to appeal before your tax determination becomes final. 
• 10-Day Demand Notice — You have 10 days to respond before the state revokes your sales tax permit for non-payment. 
• Notice of Intent to Offset — This notice says that the state has taken your state refund to offset liabilities from other state or federal agencies.
• Administrative Judgment or Lien — The MO DOR is issuing a lien against your assets. 
• Garnishment — The state plans to garnish the funds in your bank account or from your wages.
• Referral to Prosecuting Attorney or Collection Agency — The state is referring your account to a prosecuting attorney or a collection agency. 

If you owe business taxes in Missouri, you will also receive a Revocation of Sales Tax License Notice and a Bond Forfeited Notice. These will come after the garnishment and before the referral to the collection agency. The MO DOR can also revoke your sales tax permit for 

Statute of Limitations on Missouri Tax Liabilities

The state has three years to assess additional tax. The clock starts on the later of the date you filed the return or its due date. However, if the IRS adjusts your federal return, you are supposed to adjust your state return within 90 days. If you don't, the state can make an assessment after the three-year time limit. Additionally, if you fail to report more than 25% of your income, the MO DOR has up to six years to bill you.

If you don't file or file a fraudulent return, there is no statute of limitations. The MO DOR can bill you for the tax, interest, and penalties at any time. They may also pursue criminal charges against you.

Missouri Tax Audits

The Missouri Department of Revenue can audit any tax return filed with the agency. If the DOR selects your business tax returns for audit, they will likely come to your business, but some audits are conducted electronically or at the auditor's office. If you incur a tax liability after an audit, you'll generally also face interest and penalties, but you do have appeal rights. Audits can be stressful, which is why the right help is critical. 

Get Help With Unpaid Taxes in Missouri

Dealing with unpaid taxes in Missouri can be time-consuming, complicated, and frustrating. To get the best results possible in your situation, you should reach out to a tax professional with experience with the MO DOR.

At TaxCure, we have a directory of quality tax professionals from around the country — contact a Missouri tax pro to get help today. Our unique search and filters will help ensure you find the best professional to help with your unique tax problem. Also, see our list below of top-rated tax professionals in Missouri & by designation type.

• Top Pros that help with Missouri DOR
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• Missouri Tax Relief Professionals
  • Missouri Enrolled Agents
    • Kansas City, Missouri Enrolled Agents
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    • Saint Louis, Missouri Enrolled Agents
  • Missouri CPAs

Missouri Tax Brackets, Deductions, Deadlines and Resources

Before we get into the details of late taxes, let’s take a moment to discuss the tax brackets, deductions, deadlines and additional resources to help you better understand the overall landscape of Missouri taxes.

Missouri Tax Brackets

Missouri uses a progressive tax system for individual income taxes, meaning your tax rate increases as income rises. As of tax year 2026, Missouri's tax brackets are structured as follows:

• $0 to $1313: $0 tax
• Over $1313 to $2626: 2.00% of the amount over $1313
• Over $2626 to $3939: $26 plus 2.50% of the amount over $2626
• Over $3939 to $5252: $59 plus 3.00% of the amount over $3939
• Over $5252 to $6565: $98 plus 3.50% of the amount over $5252
• Over $6565 to $7878: $144 plus 4.00% of the amount over $6565
• Over $7878 to $9191: $197 plus 4.50% of the amount over $7878
• Over $9191: $256 plus 4.95% of the amount over $9191

These brackets apply to both single and married filers, although the income thresholds may be updated annually for inflation.

Deductions and Credits

Missouri offers several deductions and credits to reduce your taxable income or tax liability:

• Standard Deduction: Similar to the federal standard deduction, Missouri allows a deduction based on your filing status, helping to lower your taxable income.
• Personal Exemption: Taxpayers can claim a personal exemption for themselves and dependents, further reducing taxable income.
• Property Tax Credit: Also known as the "Circuit Breaker" credit, this is available to certain seniors and disabled individuals based on property taxes or rent paid.
• Missouri College Savings Plan (MOST) Deduction: Contributions to a MOST 529 plan are deductible up to certain limits, encouraging education savings.

There are also a handful of new tax deductions for 2024, including:

• Business Income Tax Deduction (Section 143.022): Enhancement of the deduction has been increased to 20% for the 2023 tax year. Eligibility Expansion now includes income reported by farmers on the IRS Schedule F and Form 4835, in addition to the existing eligibility for income reported on IRS Schedule C and Part II of Schedule E for partnerships and S corporations.
• Employee Stock Ownership Income Tax Deduction Extension (Section 143.114): Program Restart of the Employee Stock-Ownership Program (ESOP) deduction has been reinstated for all tax years starting January 1, 2023, encouraging employee ownership through stock options.
• Federal Broadband Grants’ Income Tax Deduction (Section 143.121) has a new deduction that Offers a 100% subtraction from federal adjusted gross income for federal grant money received for broadband internet expansion in underserved areas, applicable to grants received on or after August 28, 2023.
• Missouri Farmland Sold to a Beginning Farmer (Section 143.121) has a capital gains deduction for Farmers selling farmland or receiving income from rent, lease, or crop sharing agreements with beginning farmers can deduct a percentage of their capital gains or up to $25,000, for transactions occurring on or after August 28, 2023.
• Certification Requirement: A certification from the Missouri Department of Agriculture is required to qualify.

Tax Credits

You may also be qualified for a number of tax credits, with some of those including:

• Show MO Act Tax Credit Program (FPC) (Section 135.750) has a program revival and modification tax credit. This tax credit, aimed at motion media and series production projects, has been restarted and renamed the Show MO Act, with eligibility starting from January 1, 2023.
• Credit Details: Qualifying taxpayers can receive credits based on actual production expenses, with an annual cap of $16 million divided equally between motion media and series production projects.
• Intern & Apprentice Recruitment Tax Credit (Section 135.457) has a new program. Starting January 1, 2024, this program offers a $1,500 tax credit per intern or apprentice, subject to qualifications and an annual cap of $1 million.
• Ethanol Retailer and Distributor Tax Credit Program (Section 135.772) has a credit for ethanol sales. Retailers or distributors selling qualified ethanol blend fuels can receive a $0.05 per gallon credit, starting January 1, 2023, with a program cap of $5 million.
• Biodiesel Retailer’s Tax Credit Changes (Section 135.775) has enhanced credits. Retail dealers and distributors selling biodiesel blends can claim credits of $0.02 per gallon for blends of 5-10% and $0.05 per gallon for blends of 10-20%, starting January 1, 2023, with a cap of $16 million.
• Biodiesel Producer’s Tax Credit Program (Section 135.778) has support for producers. Biodiesel producers in Missouri can claim a $0.02 per gallon credit for fuel produced, applicable from January 1, 2023, with a first-come, first-serve cap of $5.5 million.

You may be eligible for any number of these tax credits, but to be sure, speaking to a tax professional is the best way to determine which tax credits you qualify for.

Filing Deadlines

The deadline for filing Missouri state income tax returns is typically April 15th, coinciding with the federal tax deadline. If April 15th falls on a weekend or holiday, the deadline is extended to the next business day. Taxpayers who request a federal extension automatically receive a Missouri extension, extending the filing deadline to October 15th.

Relevant Resources

Aside from consulting with Missouri tax professionals for help with back taxes, taxpayers have access to a few additional resources for assistance:

• Missouri Department of Revenue (DOR) Website: The official DOR website provides tax forms, instructions, and updates on tax laws and policies.
• Online Tax Services: The DOR website allows taxpayers to file returns and make payments online.
• Missouri Legal Aid: For those who qualify, Missouri Legal Services is a collection of free legal advice services on tax matters, including disputes with the DOR.

Missouri Filing Statuses and Income Level Rules

Missouri's tax system is built around different filing statuses, each with its own set of rules and thresholds. Understanding these statuses can help you accurately determine your tax liabilities and take advantage of any available deductions or credits. Here's a breakdown of the rules for different filing statuses and income levels in Missouri.

Single Filers

• Taxable Income: Single filers are subject to Missouri's progressive tax rates, starting from 0% up to the maximum rate based on their taxable income.
• Deductions and Credits: Eligible for standard deduction, personal exemptions, and may qualify for other state-specific deductions and credits based on income and personal circumstances.

Married Filing Jointly

• Combined Income: Couples who choose to file jointly will have their incomes combined for tax purposes, which could potentially place them in a higher tax bracket but also allows for a higher standard deduction.
• Deductions and Credits: Qualify for a doubled standard deduction compared to single filers, along with double personal exemptions. Other deductions and credits may be more beneficial when filing jointly, depending on the couple's combined income and expenses.

Married Filing Separately

• Separate Taxable Incomes: Each spouse reports their own income, deductions, and credits separately. This status may benefit couples who wish to keep their finances separate or when one spouse has significant medical expenses or miscellaneous deductions.
• Deductions and Credits: Each spouse may claim a standard deduction and personal exemptions for themselves. However, certain credits and deductions may be limited or unavailable compared to filing jointly.

Head of Household

• Qualifying Individuals: To file as head of household, you must be unmarried or considered unmarried on the last day of the tax year, have paid more than half the cost of keeping up a home for the year, and have a qualifying person living with you for more than half the year.
• Tax Benefits: Offers a higher standard deduction and lower tax rates compared to single filers. This status is beneficial for single parents or individuals supporting other dependents.

Qualifying Widow(er) with Dependent Child

• Income and Tax Rates: For two years following the year of their spouse's death, qualifying widow(er)s can file as married filing jointly, allowing them to benefit from the same tax rates and deductions as couples filing jointly.
• Eligibility: Must have a dependent child and not remarry within the tax year to qualify for this status.

While most taxpayers, if applicable, will see lower taxes when filing jointly, it’s best to speak to a tax professional to best determine your optimal method of resolving back taxes.

FAQs on Missouri Taxes

How do you pay Missouri taxes?

You can pay individual taxes online on the DOR's website with a check or credit/debit card for a fee, or you can mail in a check or money order. You can also pay business taxes online, whether or not you have an online business account. You can also mail in most business taxes, unless you're a high-volume payer with an online payment obligation.

What if you have unfiled Missouri tax returns?

Find a licensed tax pro to help you file the unfiled returns. You will be subject to interest and penalties based on the liability owed and backdated to the original due date. However, if you address the situation before the DOR contacts you, you may be able to use the Voluntary Disclosure Program, which lets you catch up while minimizing penalties and reducing your lookback period.

Does Missouri have a sales tax holiday?

Yes, every year from the first Friday of August to the following Sunday, the state offers a sales tax holiday on clothing, computers, school supplies, and certain other items. If you're a retailer, you should not collect sales tax on these items, and when you file your sales tax return, you should report the sales as exempt and not remit sales tax to the state.

Texas Tax Resolution Options and Consequences of Back Taxes

Texas doesn't have a state income tax, but the Texas Comptroller's office collects 60 different taxes, fees, and assessments, including local sales tax, state sales tax, franchise tax, and a mixed beverage tax gross receipts tax. Additionally, property owners in Texas must pay property taxes to the local taxing authorities in their areas.

This guide explains what to expect if you have back taxes in Texas, and it outlines your resolution options for unpaid taxes or unfiled returns.

Contact the Texas Comptroller's Office:

• Individual Taxes: 888-334-4112
• Business Taxes: 888-334-4112
• General Inquiries: 888-334-4112
• Collection's Number: 800-252-8880
• Website: https://comptroller.texas.gov/

Resolution Options for People Who Owe Texas Back Taxes

The state offers a few different options for people who have unpaid taxes in Texas. If you can't afford to pay your tax bill in full, you may qualify for one of these programs.

Payment Plans for Texas Back Taxes

Texas offers payment plans on back taxes on a case-by-case basis. Typically, the state only approves payment plans if paying the tax in full would place an undue hardship on the taxpayer. You can request a payment plan by contacting your local Comptroller's field office.

Collection actions will continue on your account even if you set up a payment plan. The state will continue to send billing notices, a lien can still be filed, and state warrants will be placed on hold until you pay your tax bill in full, which means that you cannot receive any payments from the state.

Payment Plans for Delinquent Property Tax in Texas

If you have unpaid property taxes, you may qualify to set up a payment plan to make installment payments over 36 months. Local taxing authorities grant payment plans at their discretion. They are only required to give you this option if your property is a residence homestead.

Offer in Compromise on Texas Back Taxes

An offer in compromise is when the state agrees to let you pay off your tax bill for less than you owe, and Texas does not have this option available for taxpayers. However, the state does have a penalty abatement program.

Removing penalties from your account can help lower your total tax liability.

Innocent Spouse Relief

You cannot apply for innocent spouse relief on Texas back taxes. However, if you owe federal income taxes exclusively due to your spouse, you may qualify for innocent spouse relief on the federal level.

Hardship Status

Texas does not offer a formal hardship program for people who cannot afford their state back taxes. However, the state occasionally offers relief programs. For example, the Comptroller offered payment plans to businesses that could not pay their sales tax bills due to the Covid-19 pandemic.

If you cannot afford to pay your tax bill, you should reach out to the state. The Comptroller's office may be able to provide you with relief in extreme situations.

Voluntary Disclosure Agreements in Texas

The voluntary Disclosure Program allows businesses and individuals with unfiled Texas returns to avoid penalties in exchange for coming forward voluntarily. To qualify, you must not be under audit, and you must come forward before the state contacts you. You may need to meet other eligibility criteria, but a tax pro can help you figure out the details. 

Penalty Abatement/Penalty Waivers

You can request a waiver of penalties due to unpaid or unfiled Texas taxes. Use Form 89-224 if your penalties are due to a late report and/or payment, and use Form 89-225 if your penalties are due to failure to file and/or to pay electronically.

You can mail these forms to the Texas Comptroller, or you can send them to the state over email. Alternatively, you can request a penalty waiver by writing to the state, but you need to include all the details requested on the state's official penalty waiver request forms.

Appeals Process

If the Comptroller audits your sales tax return, franchise tax return, or any other type of tax report, and you disagree with their position, you have the right to request a reconciliation conference with the audit supervisor. You can also request guidance from the Tax Policy Division.

If you and the auditor cannot come to an agreement during reconciliation, you may request an Independent Audit Review Conference (IARC). An IARC is an informational meeting between you, the auditor, and an Independent Audit Reviewer. You will receive a Texas Notification of Audit Results when the IARC decides on your case.

You can request a redetermination hearing if you disagree with the decision, but you must make your request on or before the final date on your notice. The final date is usually 60-days after the statement date on the notification, but if the state makes a jeopardy determination, the final date is 20 days after the determination date.

If you pay your balance plus penalties and interest in full, you have six months from the final date to request a refund. 

Amnesty Program

As of 2021, Texas does not have a current amnesty program for unpaid taxes. The state had a tax amnesty period from May 1st, 2018, to June 29th, 2018. During this period, eligible taxpayers could pay their back taxes without worrying about criminal persecution. 

Enforcement Actions for Unpaid Texas Taxes

Typically, if you refuse to pay your state taxes, the state will require you to post a security bond. Then, the state will file a tax lien on your property, freeze or seize your non-exempt assets, and suspend your permits or licenses. The state may also file criminal charges against you.

Here is a breakdown of the back tax collection activities used in Texas. 

Tax Liens

Texas state law requires the state to secure its interest in back taxes through a lien. A tax lien is when the state makes a legal claim against your property for back taxes, penalties, and interest.

A tax lien automatically attaches to your property on January 1st every year in relation to property taxes. If you don't pay your property taxes, the taxing authority has the right to foreclose, seize the property, and auction it off to pay the tax bill.

Tax Levy

The State of Texas may seize your assets if you have unpaid taxes. The Comptroller's office has the right to seize and sell any of your non-exempt assets to cover your tax bill. Exempt assets include your homestead, some personal belongings, and a vehicle of a reasonable value.

Penalties and Interest on Delinquent Tax in Texas

Texas applies a $50 penalty for every tax report that is filed late. The penalty applies the day after the due date. You also face a 5% penalty if the tax is up to 30 days late or a 10% penalty if the payment is more than 30 days late.

An additional 10% penalty applies if you pay the tax after the date noted on the Notice of Tax/Fee Due. Paying late brings your total penalty to 20%.

For example, if you file your sales tax report on time, but you don't pay until two weeks later, your penalty will be $100 on a $2,000 tax bill. If you don't pay for over a month, your penalty will be $200. If you pay after the Notice of Tax Due date, your penalty will be $400.

Texas assesses interest starting on the 61st day after your due date. The interest rate is the prime rate plus 1%, and it adjusts annually.

Involuntary Termination of Entity (LLC, LP, Corporation, Nonprofit)

Texas Secretary of State can involuntarily terminate your entity if you fail to meet the requirements of filing annual reports, paying the Texas franchise fee, maintaining a registered agent, or paying SOS filing fees. This means that you may become liable for business debts and lawsuits, won't be able to open business bank accounts, and will not be able to take out loans. Sometimes you will not be able to operate your business. You will need to comply with the requirements in order to reinstate your Texas business.

Penalties for Late Unemployment Taxes

Most employers in Texas must pay unemployment taxes to the Texas Workforce Commission every calendar quarter. If you're late, you may face a penalty of up to 37.5% of the unpaid unemployment tax amount. 

Penalties for Past Due International Fuels Tax Agreement (IFTA) Taxes

IFTA taxes have different penalties than other Texas state taxes. For IFTA tax, the minimum penalty is $50 or 10% of your total tax liability, whichever is greater. Interest begins to accrue the first day your bill is late, and it accrues monthly. As of 2021, the annual interest rate on IFTA is 5%.

Penalties and Interest on Delinquent Property Taxes

Typically, property tax bills are mailed in October, and they are due January 31st. If you pay on or after February 1st, your property tax bill will incur penalties and interest. Note that if your tax authority mails your bill later, it is not late until 21 days after the postmark date.

Late property tax bills in Texas incur a 6% penalty on February 1st, and they incur an additional 1% penalty each month until July 1st. Then, the penalty becomes 12% of the balance. If the taxing authority hires a private attorney to collect the tax, they can charge an additional penalty of up to 20% of the balance.

For example, if your unpaid property tax is $2,000, your penalty will be $240 on July 1st. If the taxing authority hires an attorney to collect your unpaid taxes, they may add a penalty of up to $400. 

On top of penalties, you also face interest of 1% of the balance per month. There is no maximum amount on the interest. To continue with the above example, by July 1st, your account balance would have incurred interest of 6% or $120 on top of the penalties. 

Permit and License Suspensions for Unpaid Taxes in Texas

If you don't report or file taxes, the Comptroller's office will conduct a hearing to decide whether or not to suspend any permits or licenses issued by the agency. If you don't appear at the hearing, the Comptroller's office will suspend your licenses and permits.

You can avoid the hearing by filing and paying your back taxes or posting a security bond required by the state.

Common Notices

The Comptroller's office will send you an estimated billing if you don't file a required tax report. The billing notice outlines penalties, interest, and collection actions, and it explains what to do if you disagree.

If you don't file, pay tax, or post a security bond, you may receive a notice of hearing to cancel or suspend your licenses or permits. You should also receive notices before the state takes any collection actions on your account.

In some cases, the Comptroller's office may hand the account to the Attorney General. If you don't respond to notices from the Texa Attorney General's Office, you can face civil actions.

Statute of Limitations on Tax Collection in Texas

In Texas, the Comptroller has four years from the date the tax is due to assess a tax liability. However, this statute of limitations does not apply in the following situations:

• When the taxpayer fails to file a sales tax return.
• The taxpayer files a sales tax return with a gross error that underreports the tax due by at least 25%.
• When the taxpayer files a fake return with the intent to evade taxes.

The taxpayer and the Comptroller may agree in writing to extend the statute of limitations for up to 24 months. The limit is paused if a bankruptcy case is pending, between the date of a protest payment and the filing of a lawsuit, and while a redetermination or refund hearing is pending. The Comptroller's office only has three years from the date of a deficiency determination to seize assets.

Tax Audit in Texas

The Texas Comptroller has the right to audit your Texas state tax returns. The Comptroller may audit any return that you submit to the state, but in particular, the state tends to audit a lot of restaurants. Depending on the situation and your history of compliance, you may qualify to request a managed audit which is where your tax pro audits the records under the supervision of a state auditor. If you're dealing with a sales tax or mixed-beverage tax audit on your restaurant, you should look for a tax pro who has dedicated experience with that type of tax problem. 

Get Help With Unpaid Taxes in Texas

If you have unpaid taxes in Texas, a tax professional can help. They can look over your records and help you identify the best resolution option for your situation. Then, they can help you negotiate an arrangement with the state. To learn more, contact a Texas tax pro today. To browse top Texas professionals by license type, please navigate using the links below. Attorneys, enrolled agents, and CPAs can help resolve problems with the Texas Comptroller and IRS issues.

• Texas Tax Relief Professionals
  • Texas Tax Attorneys
    • Dallas, Texas Tax Attorneys
    • Houston, Texas Tax Attorneys
    • San Antonio, Texas Tax Attorneys
  • Texas CPAs
    • Houston, Texas CPAs
  • Texas Enrolled Agents
    • Austin, Texas Enrolled Agents
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  • Corpus Christi, Texas Tax Professionals
  • Dallas, Texas Tax Professionals
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  • Texas COPA Tax Professionals
  • Texas Work Force Commission Tax Professionals

Disclaimer:  The content on this website is for educational purposes only. It does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.

Guide to Texas Penalty Waiver (Abatement) & Form 89-224, 89-225

The Texas Comptroller allows taxpayers the right to remove or reduce penalties and interest through a penalty waiver. Penalties and/or interest may be abated if you have a valid reason for filing or paying your tax report late.

How to Qualify for a Penalty Waiver in Texas

To qualify for a penalty waiver in Texas, you or your business must meet the following criteria:

• You are current with all state tax filing and payment obligations.
• You haven't received a waiver in the last two years — exceptions may be granted if you have extenuating circumstances.
• You are within the four-year statute of limitations from the date that the tax became due.
• The Comptroller's office has not frozen your bank account or seized your assets. 
• Your tax bill has not been outsourced to a third-party collector
• Your business doesn't have an inactive registration with the Texas Secretary of State. 

You must pay the underlying tax to request a penalty waiver. If you also paid the penalties, you will get a refund if your waiver is accepted.

How to Apply for a Penalty Waiver in Texas

You can apply for a penalty waiver using Form 89-224 (Request for Waiver of Penalty for Late Report and/or Payment) or Form 89-225 (Request for Waiver of Penalty for Failure to File and/or Pay Electronically). These forms are available on the Texas Comptroller's website. 

Both forms require contact details for you or your business. You also must list the tax type, filing type (yearly, quarterly, or monthly), the last month of the reporting period, the year the report was due, and the amount of the penalty you want to be waived. Then, you need to explain why your payment or report was late and what you have done to correct the issue.

Once you have completed the forms, you can mail or email them to the Comptroller of Public Accounts. Alternatively, you can write a letter, but you need to include all the details noted on the above forms.

Reporting Periods Eligible for Penalty Waivers

The Texas Comptroller's office limits the number of reporting periods for which you can claim a penalty waiver. Here are the maximum number of eligible periods based on how often you are required to report:

• One annual
• Two quarterly
• Six monthly

If you have penalties for more periods, a Voluntary Disclosure Agreement may help you. Voluntary disclosure is when you freely come forward about back taxes you owe, and in return, the state agrees to only look back four years and to remove penalties when you pay the tax in full. You can only qualify for a voluntary disclosure if the state has not previously contacted you about the tax.

Penalty Waivers on Audits

If the state does an audit, it treats your account as if you have requested a penalty waiver. If you are subject to an audit, you do not need to request a penalty waiver. When you receive your determination, you will also find out if your penalties have been waived.

If you don't agree with the determination, you can request a redetermination hearing and go through the appeals process.

Waivers on Interest

In most cases, Texas will only waive penalties, but you can request an interest waiver as well. The state will generally only waive interest if any of the following apply:

• An undue delay caused by comptroller personnel
• Poor advice provided by the comptroller
• A natural disaster

These rules apply if you apply for a penalty waiver on your own or if the state considers providing you with a waiver during an audit.

Appealing a Penalty Waiver Request

If your penalty waiver request is denied, you have 10 days to request an administrative appeal. You must appeal in writing — simply explain why you disagree and include any documents to support your case.

If the administrative appeal is denied, you can take additional steps. The state spells out your options in its denial letter.

Penalty Waivers for Property Taxes

You can request a waiver up to the 81st day after the delinquency date if you incur penalties due to a late property tax payment. Typically, the taxing authority has the discretion to accept or deny your request at its discretion, but it must waive penalties if one of the following situations apply:

• The taxing authority caused the delinquency.
• A qualifying religious organization acquired the property in the last year.
• You tried to mail your payment on time, but the address changed since the last time you paid property taxes. 
• Your mortgage copy doesn't keep your property tax payments in an escrow account, and they failed to send a copy of the property tax bill to you. 
• You provided the taxing authority with your new address before September 1, but the agency sent the bill to the wrong address. 
• Your electronic fund's transfer failed. 
• The property was previously omitted from the appraisal roll. 
• The carrier put the wrong postmark on your envelope, making your payment appear late. 

Get Help With Penalty Waivers in Texas

If you're struggling with unpaid taxes in Texas, you should reach out to a tax professional. They have experience dealing with the Texas Comptroller of Public Accounts, the Texas Department of Labor, and the Texas Workforce Commission, and they can help you negotiate with these agencies. To get help, contact a tax professional with experience in Texas penalty waivers today.

Disclaimer:  The content on this website is for educational purposes only. It does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.

Payment Plans on Texas Back Taxes

If you owe back taxes in Texas, you may be able to qualify for a payment plan to pay off your tax bill in installments over time. Unfortunately, the Comptroller's office doesn't publish clear guidelines on the payment plans it offers. Instead, it considers payment plans on a case-by-case basis. Here's what you need to know.

How to Apply for a Tax Payment Plan in Texas

To apply for a tax payment plan, you must contact the local Comptroller's field office in your area. There is no standard application, and the field office may ask for a variety of information.

Typically, you have to prove that paying the tax in full would be an undue hardship on you. You may also need to demonstrate a commitment to avoid getting behind on your taxes in the future. 

Penalties and Interest on Payment Plans

In Texas, interest begins accruing on taxes the 61st day after they are due. Interest will continue to accrue on your account if you set up a payment plan. The Comptroller's office adjusts the rate annually, and it is the prime rate plus one percent.

You may also face penalties. Penalties can be up to 20% of your tax bill. A 10% penalty applies when your taxes are over 30 days late, and an additional 10% penalty applies after the date noted on the Notice of Tax/FEE Due letter. However, you may request a penalty waiver to get the penalties removed from your account.

Collection Activity When You Have a Payment Plan

Even if you set up a payment plan, the Comptroller's office may continue collection actions on your account. You will continue to receive notices about your delinquent taxes, and the state may also place a lien on your assets until you have paid the tax, interest, and penalties in full.

Additionally, state warrants will be placed on hold, meaning that you cannot receive any payments from the state until you have paid off your state taxes in full.

Payment Plans for Delinquent Property Tax in Texas

You may be able to make payments on delinquent property taxes bills over 36 months, but the decision is up to your local taxing authority. They are only required to provide this option on residence homesteads.

Alternatively, the following people are allowed to pay their property tax bills in four installments:

• Disabled individuals
• People age 65 and older
• Disabled veterans or their unmarried surviving spouses
• Partially disabled veterans with homes donated by charitable organizations and their unmarried surviving spouses
• Individuals or business owners of properties in disaster areas that the disaster has damaged.

You must make your first installment payment before the delinquency date, and if your delinquency date is February 1, you should make your remaining payments by April 1, June 1, and August 1. If you have a different delinquency date, your payments are due two, four, and six months after that date.

Before signing an installment agreement, be aware that your signature means that you agree with the taxes. If you want to protest your property taxes, you should not sign this agreement.

Get Help Setting Up a Tax Payment Plan in Texas

Texas has relatively vague procedures about applying for and setting up payment plans on back taxes. For best results, you should work with a professional who has experience in Texas. To get help, reach out to a Texas tax pro today.

• Texas Tax Relief Professionals
  • Texas Tax Attorneys
    • Dallas, Texas Tax Attorneys
    • Houston, Texas Tax Attorneys
    • San Antonio, Texas Tax Attorneys
  • Texas CPAs
    • Houston, Texas CPAs
  • Texas Enrolled Agents
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    • Dallas, Texas Enrolled Agents
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  • Corpus Christi, Texas Tax Professionals
  • Dallas, Texas Tax Professionals
  • Houston, Texas Tax Professionals
  • Texas COPA Tax Professionals
  • Texas Work Force Commission Tax Professionals

Disclaimer:  The content on this website is for educational purposes only. It does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.

Review of the Arkansas State Tax Payment Plan

The Arkansas Department of Finance and Administration (DFA) may be willing to let you pay off your back taxes in monthly payments. To qualify, you typically need to show the DFA that you cannot pay your tax liability in full but you can afford to make monthly payments. Here is an overview of the process.

How to Apply for a Tax Payment Plan in Arkansas

In Arkansas, there is no set process to apply for a payment plan on back taxes, and the state publishes very limited information about how to qualify. To learn more about payment plans, taxpayers can call the state directly at 501-682-5000 or 1-800-292-9829.

Because there is such limited guidance on how to work through this process, you may want to work with a tax professional.

What to Expect When You Apply for a Payment Plan

The Arkansas DFA judges each payment plan request on a case-by-case basis. Essentially, the agency wants proof that you cannot afford to pay the tax bill in full and that you are making the highest monthly payment you can afford to make. If you call and request a payment plan, the state may request a variety of documents to assess your ability to make payments.

How Arkansas Assesses Your Financial Situation

To determine whether or not to offer you a payment plan, the state will want to know about your assets, debts, income, and expenses. Depending on how much you owe and your unique financial situation, the state may request copies of old tax returns, proof of income, a list of your assets, or other documents.

In some cases, the state may use the following forms from the Internal Revenue Service (IRS) to collect this information:

• Form 433A (Collection Information Statement for Wage-Earners and Self-Employed Individuals)
• Form 433F (Collection Information Statement)
• Form 433B (Collection Information Statement for Businesses)

Individual taxpayers should prepare to submit Form 433A or 433F, while businesses should be willing to file Form 433B. The Arkansas DFA may require both of these forms if you own a sole proprietorship, a partnership, or a closely held corporation.

Setting Up Automatic Payments for Arkansas Back Taxes

If you get approved for a payment plan, a representative from the Arkansas DFA will walk you through the process of how to set up payments. Generally, the state prefers that you set up automatic payments, and in some cases, you may be required to set up electronic payments if you want to avoid having a lien issued on your account.

You can set up automatic payments for your tax liability through the Arkansas Taxpayer Access Point (ATAP). This web-based service is available for most taxes administered by the Revenue Division, and in addition to allowing you to make payments, it also allows you to file and amend certain returns, view account balances, and look at recent activity.

Note that although you can make payments on individual income tax bills, you cannot use the ATAP to file individual income tax returns.

Alternatively, you can make ACH credit payments on your back taxes. You must contact your bank to set up these payments, and if they are formatted incorrectly, the payments will be returned and your account may be subject to a failure-to-ETF penalty.

Certificates of Indebtedness and Payment Plans

In Arkansas, the DFA may issue a certificate of indebtedness or a lien when you owe back taxes. A lien is a legal claim to your property, and if you sell property that has a lien, you are legally required to give all or some of the proceeds to the lienholder.

Even if you set up a payment plan, the state can still issue a lien on your real or personal property, and in most cases, the lien will remain in place until you pay your state tax liability in full. However, the state generally won't issue a lien if you set up automatic payments to pay off your tax bill in 12 months or less.

Interest on Payment Plans

Arkansas charges 10% annual interest on back taxes, and the interest will continue to accrue on your account if you set up a payment plan. For example, if you owe $2,000 in back taxes, your annual interest will be $200.

Because the interest rate is so high, you may want to take out a bank loan to pay off your Arkansas back taxes. Any loan with an interest rate lower than 10% will save you money in the long run.

Penalties and Payment Plans

Setting up a payment plan stops penalties from accruing on your account. Monthly failure-to-pay penalties are 1% of the account's balance up to 35%, while monthly failure-to-file penalties are 5% of the account's balance up to 35%. Note that the total combined penalties cannot exceed 35% of the account's balance.

Penalties can be very expensive. For instance, if you owe $10,000, your total penalties can get up to $3,500. The sooner you set up a payment plan, the fewer penalties you will pay.

Payment Plans After an Offer-in-Compromise Rejection

The state of Arkansas has an offer in compromise program that allows insolvent taxpayers to pay off their tax bills for less than they owe. To apply for this program, you must fill out a lengthy application, provide extensive supporting documentation, and submit the federal 433 forms listed above.

Arkansas will not accept your offer in compromise application if the state believes you can pay more than you are offering, but if the state rejects your offer in compromise, it will usually offer you a payment plan.

You have the option to accept the plan and start making payments or to request a different arrangement. At this point, the state has a very detailed overview of your financial situation, and it may be relatively rigid about the monthly payment amount it is willing to accept.

Defaulting on a Payment Plan

Arkansas is very serious about its payment plans. If you miss a payment or default on any other terms, the state will declare your payment plan in default, and it will pursue other collection activities, including wage garnishment or even business closure if you're dealing with unpaid business taxes. For instance, most payment plans require you to stay current on filing requirements so if you forget to submit a state return, you may lose your payment plan.

Can You Set Up Payment Plans on Sales Tax?

The DFA allows qualifying businesses to set up installment agreements on sales tax. You must be up-to-date on filing all returns to qualify. If the state has threatened to shut your business down for lack of payment, you may be able to avoid forced closure by setting up an installment agreement. 

Get Help Setting Up a Payment Plan on Arkansas Back Taxes

Dealing with the Arkansas DFA can be complicated, especially if you're juggling multiple state taxes or federal tax liabilities as well. To get help applying for a payment plan, contact a tax pro who is experienced with the Arkansas DFA. They can help you set up a payment plan or identify the best tax resolution option for your situation. For example, those that cannot afford a payment agreement may want to consider an Offer in Compromise.

A Review of the Arkansas Offer in Compromise for Taxes

The Arkansas Department of Finance and Administration (DFA) may be willing to settle back taxes for less than you owe if you are financially distressed and meet strict application criteria.

To apply for a reduction in your tax bill, you need to complete Form 2000-4 (Arkansas Department of Finance and Administration Settlement or Compromise of Tax Liability) and submit the requested supporting documents. Here is an overview of the process.

Qualifications for an Offer in Compromise

To qualify for an offer in compromise in Arkansas, you must have an established tax liability with no further administrative or judicial review available, and you must prove that you are financially insolvent. The DFA defines insolvency as when an individual's or business's expenses exceed their income and/or their liabilities exceed their assets.

You also must be current on all tax filing requirements. If you aren't required to file a tax return, you can note that on your offer-in-compromise application.

Can you qualify for an offer in compromise if your business is still operating?

In some cases, you may be able to get an offer in compromise even if your business is still operating. However, in most cases, you must prove that the business is insolvent. Also, keep in mind that the DFA can force you to close your business if you fall behind on your state tax obligations. 

How to Apply for an Offer in Compromise

To apply for an offer in compromise, you need to fill out Form 2000-4, provide the requested supporting documents, and make an offer to the DFA. You can send a payment with your application, but if the state doesn't approve your offer, the DFA will still cash the check.

Alternatively, you can make an offer without sending a payment, and if the state accepts the offer, you must pay it in full within 30 days.

Information Required on the Application

You need to include the following details when you apply for an offer-in-compromise:

• Individual name and contact details or business name and contact details.
• Social Security Number of the individual taxpayer or business owners.
• Sales tax permit number if applicable.
• Federal Employer Identification Number (EIN) or other permit numbers, if applicable.
• Type of tax – for example, sales tax or corporate income tax.
• Tax period.
• List of all prior bankruptcies including date filed, docket number, and date of discharge or dismissal.
• Written explanation of why you need a settlement and can't make monthly payments.
• The amount of your offer.
• The source of the offered funds — for example, if you cashed out a retirement account, received a bonus at work, or borrowed money from a family member.
• Written explanation of why the tax wasn't paid on time and why you need a settlement.

To ensure you make a compelling case for your situation, you may want to work with a tax professional who has experience dealing with offers in compromise in Arkansas. You must include a signed POA form if you have an attorney, accountant, or other tax professional complete your application.

Supporting Documents

When you apply for an offer in compromise in Arkansas, individuals and sole proprietors need to include IRS Form 433A (Collection Information Statement for Wage-Earners and Self-Employed Individuals) or 433F (Collection Information Statement). Businesses should include Form 433B (Collection Information Statement for Businesses). Partnerships, single-member LLCs, and closely held corporations should include the forms for both individuals and businesses.

You also must include the following supporting documents:

• Last two years federal and state income tax returns.
• Income and financial statements from the last two years if you are not required to file a tax return.
• Copy of last three paychecks stubs.
• Proof of other income such as pensions, Social Security, alimony, or rental income.
• Copy of bank statements for the last six months if the tax due is $25,000 or under.
• Copy of bank statements for the last 12 months if the tax due is over $25,000.
• Recent credit report.
• Affidavit of property transfers made in the last two years.
• Copy of most recent real and personal property tax assessments.
• Order of discharge from bankruptcy.
• Power of attorney if applicable.

If you have applied for an offer in compromise with the IRS, you must also include a copy of your application or the acceptance letter from the IRS.

Required Financial Information

The Arkansas DFA requires very detailed financial information from people who apply for an offer in compromise because the state wants to ensure that the offer reflects the most money it would likely be able to collect from the taxpayer.

As noted above, you can use the IRS's Collection Information Statement to provide full financial disclosure to the Arkansas DFA, and this form requires the following details:

• Bank accounts
• Investments
• Virtual currency
• Real estate
• Other assets
• Credit cards
• Accounts receivable (for businesses)
• Employment information
• Non-wage household income
• Monthly living expenses

The state will assess your offer based on the information you provide on this form as well as the other details noted on your application. However, it's important to keep in mind that both the IRS and the Arkansas DFA have very strict guidelines on the type of expenses they allow.

For instance, if you claim that you cannot pay your tax bill because you are insolvent but the IRS or the DFA thinks your monthly expenses are too extravagant, your request may be denied. This can happen even if your monthly expenses exceed your income.

Offer Due to Controversy Over Amount Owed

In addition to applying for an offer in compromise due to insolvency, you can also apply for an offer in compromise due to a controversy over the amount of tax due.

If you're applying based on a tax controversy, you must complete form 2000-4 and provide a written explanation of why you believe that you do not owe the tax, but you don't need to include any of the supporting documents except the Power of Attorney form if applicable.

Requests for Penalty Waivers

In Arkansas, you can use the offer-in-compromise application to request a waiver of penalties and interest, and in this situation, you only need to fill out the application. You don't need to provide the supporting documents.

Note that Arkansas recently released a form that is specifically designed to request penalty waivers, and if desired, you can use that application instead.

Rejected Offer in Compromise

The Director of the DFA has sole discretion over whether to accept or deny an offer in compromise, and if they reject your offer, you cannot request an administrative or judicial review of their decision. If your offer is rejected, you can apply for a payment plan, but you must do so promptly, and acceptance is not guaranteed. Keep in mind that once your offer in compromise application gets rejected, your balance is due in full. If you don't pay or make arrangements, the DFA can go after your assets, including pursuing wage garnishment. 

Accepted Offer in Compromise

Once an offer in compromise has been accepted and the closing documents have been signed, the state cannot make any additional assessments, and the taxpayer cannot attempt to recover any of the tax liabilities that they have paid.

The agreement cannot be changed by the taxpayer or the Arkansas DFA unless one of the following two conditions applies:

• The taxpayer falsified or concealed facts.
• The DFA and the taxpayer made a mutual mistake concerning a material fact forming the basis for the offer in compromise.

Get Help Applying for an Offer in Compromise in Arkansas

Obtaining an offer in compromise can be very tricky, and to improve your chances of success, you should contact a tax professional who has experience dealing with the Arkansas DFA. They can also help you determine if another tax resolution option is better for your situation.

Overview of AR State Tax Options for Back Taxes

The Arkansas Department of Finance and Administration (DFA) is the primary agency responsible administers tax laws and takes care of tax collections. Its Revenue Policy and Legal Office is responsible for the Revenue Division as well as supervising the Hearings and Appeals Office and the Resolution and Tax Information Office. The DFA also provides key services such as driver’s licenses and ID cards, vehicle registration, child support services, sales permits, motor fuel permits, and other fiscal and administrative duties. Arkansas has personal income tax, a corporation franchise tax, a graduated corporate income tax, sales taxes, and property taxes. 

Arkansas does provide a tax relief framework or options for taxpayers they can pursue if they cannot pay off tax liabilities in full. Below we will review some of these tax relief options for taxpayers owing personal income taxes.. 

Navigating these complex layers of state tax administration can be extremely confusing, but to help you out, this guide explains tax resolution options, the appeals process so you know what to expect if you have unpaid taxes in Arkansas. 

Tax Resolution Options

The Arkansas DFA understands that people often need extra time to pay their taxes or may not be able to pay their tax liabilities in full. The state offers the following arrangements.

Tax Payment Plan Agreement in Arkansas

The DFA may allow you to set up a payment plan, but typically, the state issues a lien (Certificate of Indebtedness) while you're making payments. However, if you set up electronic payments to pay off the balance in 12 months or less, the state will generally not issue a tax lien on your account. Each request for a payment plan the DFA considers on a case by case basis. A payment plan agreement does allow the taxpayer to pay the tax liability off over time but the taxpayer must pay penalties and interest as well. You can read more about this option here. 

Offer in Compromise on Arkansas Tax Bills

An offer in compromise allows you to reduce your tax liability for less than you owe. To qualify, you must be financially distressed, and you must submit a detailed application explaining your financial situation. To apply, use Form 2000 – 4 (Arkansas Department of Finance and Administration Settlement or Compromise of Tax Liability). In addition, provide a completed IRS form 433A or 433F and/or 433B. 433A or 433F for an individual and/or sole proprietor and 433B for a business. Both forms are required if the offer is for a partnership, single member LLC, or closely held corporation. You can read more about the Arkansas state offer in compromise program here. 

Innocent Spouse Relief

The Arkansas DFA does not offer a formal Innocent Spouse Relief program. However, if your federal tax liability is adjusted through the Internal Revenue Service's (IRS) Innocent Spouse Relief program, you may be able to request an adjustment to your state tax liability as well. 

The DFA's application for an offer in compromise has an option where you can request to reduce your back taxes due to a controversy over the amount of tax due, and although results are never guaranteed, you can use this form to report a controversy related to your spouse or ex-spouse's actions.

Hardship Status

You cannot apply for hardship or currently uncollectible status with the Arkansas DFA as you can with the IRS. However, you may qualify for a reduction in your tax bill through an offer in compromise if you are insolvent. Insolvency means that your expenses exceed your income and/or your debts exceed your assets. 

Penalty Abatement

The DFA generally does not waive penalties or interest, but you can try to get penalties waived by filing an Individual Income Tax Penalty and Interest Waiver Request form. Alternatively, you can request penalty and interest abatement using the state's offer-in-compromise application. 

The agency will remove any penalties that are due to incorrect advice provided to the taxpayer by the DFA in writing. 

Appeals Process

Arkansas taxpayers have the right to request a review of any proposed tax assessment within 30 days of the assessment. The review can consist of an in-person hearing or a review of written documents. 

If you don't agree with the decision from the administrative review, you have 20 days to appeal to the Commissioner. You have the right to record interviews with the Commissioner at your expense as long as you inform them that you are recording, but they also have the right to record you. 

If desired, you can appeal the Commissioner's decision to the Chancery Court, but to do so, you must pay the tax, interest, and penalties under protest or file a bond for double the amount owed within 30 days of the Commissioner's final assessment. Then, you have one year from the date of protest or 30 days after obtaining the bond to file a lawsuit. 

Taxpayers with jeopardy assessments only have five days to request an appeal, and the state can issue jeopardy assessments if it believes any of the following statements are true: 

• The taxpayer's tax bill exceeds any bonds on file.
• The taxpayer intends to leave the state or remove their property from the state.
• The taxpayer plans to hide themselves or their property from the state. 
• The taxpayer plans to shut down their business without making arrangements to pay their tax bill.
• The taxpayer is taking other actions that may prevent the state from computing, assessing, or collecting tax. 

Arkansas Amnesty and Voluntary Disclosure Programs

Arkansas does not have an active amnesty program, but it has offered amnesty programs in the past. However, the state does have a Voluntary Disclosure Program. To take advantage of this program, you must not have been contacted by the state about the tax, and in exchange for you coming forward voluntarily, the state will waive all interest and penalties if you pay the total tax bill as soon as the amount has been determined.

Additionally, the state will typically limit your prior period exposure to the lesser of three years or the date a nexus was established for the tax. However, the state reviews voluntary disclosures on a case-by-case basis, and it does not limit prior period exposure in cases where you have collected taxes from customers but not remitted them to the state.

 

Consequences of Unpaid Taxes in Arkansas

If you or your business has unpaid taxes in Arkansas, you may face a variety of collection actions. Here are the strategies the DFA uses to collect unpaid taxes.

Tax Liens

The Arkansas DFA may file a state tax lien, also called a Certificate of Indebtedness, in your county of residence if you have back taxes, and you have not responded to any of the state's notices. After the lien has been filed, you will not be able to sell the property, and interest will continue to accrue on the unpaid taxes until the bill has been paid in full. 

Once you pay your tax bill in full, the state will release the tax lien approximately 30 days after processing the payment. 

Tax Levy

The Arkansas DFA does not typically use tax levies such as bank levies. The most common approach to collect unpaid state taxes for the Arkansas DFA will be, wage garnishments, andor asset seizures as part of its collection efforts used for to collect unpaid state taxes. However, but the state has the right to use levies and additional measures.

Wage Garnishments

The DFA often uses wage garnishments to collect unpaid taxes. Under state law, if you don't pay your debts to the state, the state can find someone who owes you money and collect the funds from them. That typically plays out as wage garnishment, but it can take other forms as well – for instance, the DFA intercepting payments due to you from another party, such as a renter, a client, or a payment processor. 

Interest and Penalties

Arkansas assesses interest of 10% per year on unpaid taxes, and it starts to accrue the first day your taxes are late. For example, if you owe $1,000 in taxes, your annual interest will be $100. 

The state also assesses a failure-to-file penalty of 5% of the tax due per month on unfiled returns, up to a total of 35%, and this penalty is also assessed the first day your tax return is late. For instance, if you owe $2,000, you will incur a failure-to-file penalty of $100 every month until you file your return, but the penalty will never exceed $700 or 35% of the balance. 

If you file your tax return but don't pay the taxes, you will face a 1% failure-to-pay penalty every month. The total penalties for both failure-to-file and failure-to-pay cannot exceed 35% of your total balance, but interest will continue to accrue until your balance is paid in full.

You may also face an additional $500 penalty if you file a return that contains substantially incorrect information or if you engage in conduct that attempts to avoid a proposed tax assessment or delay the administration of state tax laws.

Business Closure

The DFA may force you to shut down your business if you fail to file or pay sales or withholding taxes to the state. Typically, the state reaches out after two non-compliant issues — for example, you fail to file two returns but you make payments, or you fail to file and pay a single return (which counts as two acts of noncompliance). Then, once you reach a third issue in a consecutive 24-month period, the DFA sends another notice. That gives you five days to rectify the situation before the DFA moves forward with closure. You can also lose your sales tax license (and thus, your ability to sell taxable goods or services) if you fail to pay sales tax, interest, or penalties.

Tax Collection Notices in Arkansas

The state sends three notices: Notice of Tax Adjustment, Notice of Proposed Assessment, and Final Assessment and Demand for Payment. Typically, you receive the Final Assessment and Demand for Payment if you have not paid your balance within 70 days of receiving the other letters.

If you do not take action within 15 days, your account will be referred for additional collection actions, and at that point, the state may file a tax lien or pursue other collection activities against you. 

Arkansas Tax Agency Contact Information:

• Individual Taxes: 501-682-1100
• Business Taxes: 501-682-4775
• General Inquiries: 501-683-2827
• Collections Number: 501-683-2827
• Problem Resolution & Tax Info: 501-682-7751
• Website: Arkansas Department of Finance and Administration

Statute of Limitations on Arkansas Back Taxes

The state of Arkansas has a 10-year statute of limitations on back taxes. This means that the state can pursue collection activities including property liens for up to 10 years after the taxes have been assessed. If the taxpayer is filing bankruptcy, the statute of limitations is tolled (paused) until 180 days after the bankruptcy has been discharged. 

Get Help With Arkansas State Tax Issues

If you have unpaid taxes in Arkansas, you should work with a tax professional who understands the laws in this state and how to deal with the Arkansas DFA. At TaxCure, we have curated a a list of experienced tax resolution specialists from around the country — find a tax pro to help you today. 

CT State Tax Payment Plan Options

Whenever possible, you should pay your CT taxes in full, but if you cannot afford to do so, the Connecticut (CT) Department of Revenue Services (DRS) offers payment plans (aka Installment Agreement) that allow you to pay off your state taxes in monthly payments. Unfortunately, the DRS has strict criteria that prevent many taxpayers from qualifying and short terms that can make payment plans unaffordable. Luckily, there are a few alternative routes that can help you qualify for an affordable payment plan on back taxes in CT. Here's what you need to know.

You can request payment plans on personal taxes through the DRS's myconneCT. The DRS doesn't publish information on payment plans for sales tax or other business taxes. If you're struggling to pay those taxes, you should contact the DRS directly or reach out to a tax professional.

How Tax Payment Plans Work in CT

If you qualify, CT DRS payment plans allow you to pay off your tax bill in 12 monthly installments. As you make payments, interest of 1% per month will accrue on your balance. 

Even if you make payment arrangements, the state can still take your federal income tax refund and/or place liens on your property. Once you have paid off the entire balance plus interest and penalties, the state will release the tax liens.

Requirements for Setting Up a Tax Payment Plan in CT

The DRS says taxpayers must meet the following criteria to set up a payment plan in CT:

• Not be in collection status with the DRS
• Not be in collection status with a collection agency working for the DRS
• Not be under warrant or bankruptcy
• Not be under criminal investigation with the DRS
• Filed all returns with the DRS
• Owe $50,000 or less and you must be able to pay off the payment plan in 12 months

This list excludes almost everyone, and it really only applies to people who have just submitted a CT tax return and are trying to set up a payment plan online. For example, if someone just filed their state return and they owe $6,000, they could probably use the CT DRS's online system to set up a payment plan. 

However, most people don't attempt to set up payment plans until they are in collection status with the DRS. For example, if someone owes taxes on a return they filed a couple of years or even just a few months ago, their account is likely to already be in collection status, and based on the list above, they can't qualify for a payment plan. 

Does this mean that you cannot make payments on tax liabilities in CT? Not necessarily, but it does mean you need to work with someone who understands the system. 

How to Apply for a Payment Plan in CT

As indicated above, if you meet the criteria, you can apply for a payment plan online. Otherwise, you need to call the DRS and speak to a Revenue Agent at 860-297-4936. 

You may be able to apply for a payment plan through the mail, but you will need to set up an online account with the DRS so that you can access the form to request a payment plan. The DRS does not have payment plan request forms available on its website with its other income tax forms. 

How to Get a CT Payment Plan When You Don't Meet the Criteria

The DRS will often grant payment plans to people whose accounts are already in collection status, but again, you or your accountant will need to call the DRS and have a collection agent assigned to your account. You can't just do it yourself online without talking to anyone. 

However, at this point, you still have to deal with the 12-month limitation. This works for some people, but most people cannot easily pay off their tax liabilities in 12 months. Typically, if you ask for more than 12 months, the DRS collection agents will tell you that the system can't set up payment plans that last longer than a year. 

In some cases, you may be able to convince the DRS to set up smaller payments for 11 months followed by a balloon payment in the 12th month. For instance, someone who owes $4,000 might be able to get an agreement where they pay $100 per month for 11 months and then face a balloon payment of $2900 the 12th month. Note this simple example doesn't account for interest accruing on your balance. 

With this setup, you contact the DRS before the balloon payment is due. Then, if you can convince them that you need more time, they will extend your payment plan for another 12 months. 

Unfortunately, this is not a guaranteed process. The DRS is relatively vague about the processes it uses or the plans it's willing to accept, and often, the outcome can depend on the mood of the DRS agent. This process has worked successfully for many taxpayers in the past, but it tends to be more effective if you work with someone who has experience dealing with the DRS. 

Setting Up CT DRS and IRS Payment Plans

Many people owe taxes to both the state and federal government, and they often prioritize their federal tax liabilities over their state tax bills. Intuitively, this makes sense because federal tax bills tend to be larger than state tax bills, but if you're trying to set up payment plans with both the CT DRS and the Internal Revenue Services, there are compelling reasons to work with the DRS first.

Right now, the interest rate on unpaid taxes with the IRS is about 7% per year, and that’s compounded daily. On top of that, if failure-to-pay penalties are still being added—which is usually the case unless you’re in a payment plan—you’re looking at another 0.5% per month, or about 6% per year. That puts the total cost of carrying an IRS balance at around 13% annually. Meanwhile, Connecticut’s DRS charges a flat 1% per month, or 12% per year, with no separate penalty. So at the moment, owing the IRS can actually be slightly more expensive than owing Connecticut, which hasn’t always been the case.

As explained above, the DRS officially only offers 12-month payment plans, and if you're making a big monthly payment to the IRS, you may struggle to pay off your CT tax bill in just a year. Luckily, you can leverage your CT tax bill payments to keep your IRS payments low, but to do that, you need to set up your CT payments first. 

Here's why. When the IRS reviews requests for payment plans, it takes into account several different items in your budget, including payments for delinquent state and local taxes. If you don't currently have a state payment plan, the IRS will use a set formula to determine how much you're likely to pay that is based on the percentage that your state tax liability bears to your combined state and federal tax liability. This formula typically allocates a lower monthly amount to state tax payments than to federal payments. 

However, if you are able to establish a payment plan with the DRS before the IRS makes an assessment, the IRS will generally allow you the full monthly payment to the DRS as an allowable expense, regardless of the formula outlined above. For example, if the IRS normally assumes that you would make a $25 monthly payment on your state tax bill, but you have already agreed to make a $400 per month payment to the DRS, the IRS will use the $400 in its calculations. 

This will reduce the amount you have to pay to the IRS every month, and it will make it easier to set up a payment plan with the CT DRS. This strategy is so effective that if you have unfiled federal returns, you may even want to set up your state payment plan before filing them. 

Get Help Applying for a Payment Plan in CT

The CT DRS has vague guidelines and strict policies, and the agency is often reluctant to set up arrangements with taxpayers. If you have unpaid taxes in CT, you should work with a tax professional such as Robert Lyon, who has years of experience dealing with the CT DRS on behalf of taxpayers. He can help you navigate the DRS and set up the best arrangement possible for your needs. If you cannot afford a monthly payment plan, you could look at other options such as a CT Offer in Compromise. Get help today before the DRS escalates collection activity on your account.

Disclaimer: The content on this website is for educational purposes only. It does not serve as legal or tax advice. For specific help regarding your tax situation, contact a licensed tax professional or tax attorney.