The Arizona Department of Revenue allows taxpayers who owe a tax liability to establish a payment plan provided they are able to comply with the following:
• No new liabilities can be incurred.
• Payments must be made on time.
• No more than 2 “change in terms” or “defaulted” payment plans unless there are extraordinary circumstances.
• Understand payment plans can be reviewed at any time. If any additional documentation is requested, you must return it in a timely manner.
You should know that the AZ Department of Revenue rarely approves a payment plan that exceeds 24 months.
To apply for a payment plan, you will need to:
• Complete and submit Form 140-IA, Individual Income Tax Installment Agreement Request. (If you have multiple employers, you will need to include a statement with the company or individual’s name and contact information.)
• If applicable, submit a copy of your previously filed Application for Filing Extension.
• Submit a copy of your tax return.
This information should be mailed to the address on the bottom of Form 140-IA. The Department of Revenue will contact you if they need you to complete a Collection Information Statement. Within 60 days of the Department of Revenue receiving all your information, you will receive a notice of approval or denial.
You should be aware that the Department of Revenue does charge interest beginning on the liability’s original due date until the date of your final payment. In addition, the Department of Revenue may choose to file a tax lien, depending on how much you owe and how long it will take you to repay it. After your account is paid in full, the lien will released within 60 days if you paid cash or with certified funds.
For any questions, you can contact 602-542-5551 (Phoenix) or (520) 628-6442 (Tucson).