I Can’t Pay My Arizona Taxes. Now What?

You just found out that you owe income taxes to Arizona, and don’t have the money? No need to panic. Arizona will allow you to make installment payments via a payment plan.

Previously, a payment plan could only be requested by phone with the Arizona Department of Revenue or by filing Form 140-IA. However, the AZDOR has recently released a new, convenient option to set up the payment plan online through the AZTaxes.gov website.

How to Request a Payment Plan

Here is what you need to do. Go to AZTaxes.gov. Under the Individual menu, select Request a Payment Plan. Establishing the payment plan takes Arizona approximately 60 days after the tax liability is billed. Therefore, AZ Department of Revenue encourages taxpayers to wait 60 days after the first billing notice is received before following up regarding the request. Once submitted, AZ DOR will provide a confirmation number and a monthly installment payment amount.

Before setting up a payment plan, consider the following:

1. Once on a payment plan, a taxpayer cannot incur any new tax liabilities, but interest will continue to accrue.
2. Payments are made through the AZTaxes.gov website.
3. Payments must be made on time per the agreement.
4. If the payment plan defaults, AZ DOR will enforce without providing you with notice through a levy and/or lien action.

Need Help? Contact Us!

If you have any questions or need help setting up an installment plan, please do not hesitate to reach out to MOD Ventures and we will be happy to help.