Illinois tax payment plan with IDOR
IDOR runs the payment installment plan in Illinois through MyTax Illinois. If you accept the terms shown, the pre-approved option is approved right away.
- Financial statement
- Amounts over $15,000
- Interest for 2026
- 7% each year
- Wage levy
- Up to 15% of gross
Two IDOR plan choices inside MyTax Illinois
Inside MyTax Illinois, most people in Illinois are guided toward a plan that comes pre-approved. The link to choose is Set up a Payment Installment Plan, the one meant for IDOR. Once you pick it, questions appear for you to answer. If you meet the terms shown, approval comes right away and a confirmation message reaches you.
Use your own MyTax Illinois account, sign in and suggest other terms when the ones shown do not fit your budget. IDOR Collections staff look over what you asked for and then tell you whether it is approved, as the IDOR plan page explains.
What IDOR requires before approval
Filing every tax return through the current date is required. All of your unpaid balances go into one plan and your finances determine the monthly amount and how long the plan runs. Paper requests are made on Form CPP-1, Payment Installment Plan Request.
When the plan amount goes over $15,000, with penalties and interest counted, IDOR asks for a financial statement too. If you are an individual, file Form EG-13-I; a business files Form EG-13-B.
With ACH debit, which IDOR recommends, money comes out of your bank on its own, so payments are never late. Payment in MyTax Illinois or by credit card is also available through the pay plan page. A convenience fee is added by the card processor.
How much interest does Illinois charge on a plan?
Interest keeps growing while you make payments. The IDOR interest rate page lists a yearly rate of 7%. It applies from January 1, 2025 and runs to December 31, 2026. This interest is simple and worked out each day. The rate is reviewed on January 1 and July 1 each year, based on the federal underpayment rate.
What IDOR can do if you do not pay a debt
After notification, IDOR uses the tools shown on the IDOR collection process page:
- A lien on your property can be enforced for 20 years. It damages your credit and usually stops a sale.
- With a wage levy, your employer holds back up to 15% of your gross pay once at least 10 days’ notice has passed.
- With a bank levy, funds are held for 20 days before the state receives them.
- Seizure is possible for cars, real estate or business assets.
- Holding or revoking a sales tax certificate, a professional license or a business license.
- The case is referred to a private collection agency and that agency’s fees are added to your bill.
How long can Illinois keep collecting?
Collection can continue for a long time. Under the IDOR rules, the state can enforce a final debt for anywhere from 2 years to 20 years or more. How long that window lasts depends on what steps happen, such as a judgment won by the Attorney General or a lien that gets filed.
Business owners take on one more risk. Those collection rules allow IDOR to charge sales and withholding taxes that remain unpaid to officers or to others responsible for paying what is owed. Being found personally liable gives you 60 days to protest and that period starts at the notice.
When you owe money to IDOR and to the IRS
Illinois liens are public, so anyone can search them through the State Tax Lien Registry. Acting early, before one is filed, pays off. Illinois collection is not stopped by a federal plan. Plan on two separate plans, two monthly payments and two agencies to stay current with. Set each payment at a level you can keep up with.
Nearby states
Do you owe IDOR and the IRS at the same time?
Do you owe money to IDOR and to the IRS at the same time? A licensed tax pro can assist you on a free call, comparing the pre-approved Illinois plan against your federal payment.
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