Georgia tax payment plan through the Georgia Tax Center
You can spread what you owe over up to 60 months once the state returns for your last five years are filed. Georgia’s Department of Revenue calls this a payment plan or an installment payment agreement.
- Longest plan
- 60 months long
- Smallest payment
- $25 each month
- Bank auto draft fee
- $50
- Fee for mailed checks
- $100
Georgia’s plan rules at a glance
Both individuals and businesses may ask for a payment agreement. Below are the basic requirements the Department of Revenue lists on its payment plan page:
- No bankruptcy case is open for you.
- You have no pending Offer in Compromise with the Department.
- You have filed your Georgia tax returns for the last five years.
- The agreement may not run past 60 months.
- Every month, you pay $25 or more.
What does a Georgia payment plan cost?
A setup charge appears on the payment plan page. A $50 administrative fee comes with auto draft plans. It gets added to the balance you repay. If you would rather send a paper check by mail every month, the fee is $100. Debt you add later goes into its own plan with its own fees.
Interest continues to run while you make payments. Every month, interest is added at 3% a year over the Federal Reserve prime rate and each January that rate is reviewed. That is explained on the penalty and interest page. The late payment penalty on income tax is 0.5% a month. Late filing and late payment penalties together cannot go above 25% of the tax owed.
Pay more at any time if you want. The payment plan FAQ says extra payments reduce your total penalty and interest.
How do you request a plan through the Georgia Tax Center?
You can apply online at the Georgia Tax Center, also called GTC. Work through these steps:
- Once you log in, go to the More tab, pick Payments and Returns and select Request Payment Plan.
- Go over the terms, then provide your bank account details.
- Add a down payment if you want one. Next, pick the first payment date and the number of payments to make.
- Start by agreeing to receive plan notices by email. After that, sign with your GTC password.
- Check the Actions Center, on your home screen, for the approval notice.
Would you prefer to use paper?
By mail, the Department’s Atlanta processing center accepts Form GA-9465, Installment Agreement Request once the form is complete. The address to use appears in the form instructions.
Missed payments, refunds and state tax liens
Georgia holds on to any state refund due to you and applies it to the debt, even if you are current on plan payments. Miss a payment and you get a default letter that sets a deadline. If you ignore it, the Department can cancel the plan and add more penalty and interest. It can also claim your property, bank account or income.
The lien filing goes to the Clerk of Superior Court. It is a public record showing the debt. Another name for a state tax lien is a state tax execution. Once the debt enters collection, the lien can be filed without notice, according to the Georgia liens page. Starting a payment plan also stretches out the time collection may continue, which is 10 years.
Other options and IRS debt as well
When no plan works for you, the Offer in Compromise settles what you owe at an amount below the full balance. Form OIC-1 is required, along with a financial statement like Form CD-14C in most cases. A $100 application fee applies unless you are an individual with income below federal poverty guidelines. Then the fee is waived.
A plan with the IRS and a plan with Georgia never merge. The two plans stay separate, which means you hold two agreements. Each one has a separate due date and a separate monthly draft. Choose amounts you will be able to keep paying.
Nearby states
Do you owe money to both DOR and the IRS?
Handling a Georgia DOR plan while you owe the IRS? A licensed tax pro can help you pick monthly amounts for both on a free call.
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