Alabama State Tax Payment Plan
The Alabama Department of Revenue allows residents struggling with a tax debt to pay back the amount they owe in increments intended to prevent the financial burden associated with making a lump sum payment. However, the payment period cannot exceed 12 months.
In order for the state to consider a payment plan:
• Your bill must have gone through a final assessment without appeal.
• The DEPARMENT OF REVENUE commissioner must believe this will help facilitate the collection of the entire debt.
To apply for a payment plan, you will need to:
• Complete and submit the Collection Information Statement and attached Affidavit.
• Submit the documentation listed in the bottom left corner on page 5 of the statement.
• Submit your first payment in the form of a check or money order made payable to the Alabama Department of Revenue. (If you fail to submit a payment, the Department of Revenue has the right to begin the collection process.)
You can submit your forms, additional documents, and payment to the address listed on the bottom of the Affidavit. You will receive a written response as to whether your proposed payment plan was approved, rejected, or adjusted, though the Department of Revenue does not say how long it will take for a decision to be made. You can contact the Department of Revenue at 334-242-1220 with any additional questions.
Your payment agreement may be terminated if it is determined the information you provided was inaccurate, as well as if you fail to make an installment payment on time, have a significant change in financial circumstances, or fail you pay any other tax liability in a timely manner.