State of Illinois Tax Installment Agreements: What You Need to Know
If you owe back taxes to the State of Illinois, you may be able to arrange a tax installment agreement (TIA). This payment plan allows you to pay off your outstanding balances in monthly installments. In this article, we will discuss the eligibility requirements, application process, and terms of a State of Illinois TIA.
Eligibility Requirements
To be eligible for a State of Illinois TIA, you must:
– Owe at least $100 to the state.
– Have filed all required tax returns.
– Not be in bankruptcy.
– Not have an existing TIA for the same liability.
– Agree to direct debit payments from a checking or savings account, or provide a monthly payment by mail.
Application Process
To apply for a State of Illinois TIA, you must submit Form CPP-1, Request for Installment Payment Plan. You can either download the form from the Illinois Department of Revenue website or request a paper form by calling 1-800-732-8866.
The form requires you to provide:
– Your name, address, and Social Security number or federal employer identification number.
– The type of tax you owe (e.g. individual income, sales and use, corporate income).
– The tax period(s) for which you owe taxes.
– The amount you owe.
– The payment terms you are requesting.
– Your banking information for direct debit payments (if applicable).
Once you have completed the form, you can submit it by:
– Faxing it to (217) 785-5878.
– Mailing it to Illinois Department of Revenue, Payment Plan Unit, PO Box 19014, Springfield, IL 62794-9014.
– Emailing it to REV.PaymentPlan@illinois.gov.
Terms of a State of Illinois TIA
If your TIA is approved, you must comply with the following terms:
– You must make your monthly payments on time.
– You must continue to file all required tax returns and pay all current taxes on time.
– The state may file a tax lien against your property until your TIA is paid in full.
– The state may revoke your TIA if you fail to comply with the terms or if you provide false information on your application.
– Interest and penalties will continue to accrue on your outstanding balances until they are paid in full.
Conclusion
If you are struggling to pay your Illinois state taxes, a tax installment agreement may be a viable option for you. As long as you meet the eligibility requirements and comply with the terms of the agreement, you can avoid more severe consequences such as wage garnishment or bank levies. Contact the Illinois Department of Revenue to learn more about this payment plan and to determine if it is right for you.