West Virginia tax payment plan through MyTaxes
You can use MyTaxes to arrange a West Virginia Tax Division payment plan for personal income tax. Choose a term of six months or less and the Tax Division will not file a lien unless you default.
- Payment plan with no lien
- Up to 6 months
- Autopay plan with no lien
- 12 months
- Late payment addition
- Each month adds 0.5%
- Interest rate
- 3 points above the prime rate
Six months and twelve months under the lien rule
In West Virginia, whether a tax lien is filed depends on how long your plan runs. A public claim against your property is called a tax lien. According to the Tax Division plan page, plans of six months or less have no lien unless you default.
For a plan that runs past six months, the state requires a lien to protect that plan. Once you pay the remaining balance in full, the lien is removed. To avoid a lien, you can choose a 12 month plan and set up recurring payments through MyTaxes.
Which people qualify for a six-month plan?
A six month plan covers personal income tax. You can get one if all three of these conditions are true:
- You can pay what you owe within six months
- You have no other personal income tax balances and every personal income tax return has been filed.
- You have not defaulted on any personal income tax plan before.
How do you request a plan through MyTaxes?
If you cannot pay with your return, pay what you can when you file. Once the Tax Division has processed your return, you receive a bill for the amount still owed, plus interest and penalties. Send what you can toward that bill, then request the plan.
To request a plan through MyTaxes, set up an account there. The site takes both one-time payments and recurring payments. Choose the payment type ‘Payment Plan Payment’ to apply the payment to your plan. Select the ‘Manage Recurring Payments’ link to arrange automatic monthly payments.
Bills for the full balance continue to arrive while your plan is active. The bills are generated automatically, so continue paying your monthly amount or more.
Interest and additions to tax
West Virginia law calls penalties additions to tax. Under W. Va. Code 11-10-18, each month adds one half of one percent to tax listed on a return that goes unpaid, up to 25%. A late filing adds 5% each month, with a maximum of 25%.
The Tax Commissioner chooses the interest rate each year. As W. Va. Code 11-10-17a provides, it equals three percentage points added to the bank prime rate and applies each Jan. 1. Interest and penalties keep growing even while a plan is active and they stop only when the debt is paid off completely.
What happens if you miss a payment
The Tax Division responds quickly once your plan payments stop. According to the Tax Division payment plan page, collection action begins right away. The actions include filing a tax lien. Wage garnishment is another action and it takes part of your paycheck. That list also covers bank account levies, which pull money out of your accounts.
Some people are able to settle for less. The Audits and Collections page says you can submit an Offer in Compromise application through MyTaxes. That list also includes Form 433-A, known as the Collection Information Statement for Individuals.
Running state and IRS payment plans together
Your MyTaxes plan covers West Virginia income tax only. A separate installment agreement is required by the IRS, following its own terms. Two agencies provide two due dates each month and recurring payments with both reduce the chance of missing one.
Nearby states
Do you owe money to both Tax Division and the IRS?
Are you managing a plan for West Virginia taxes along with an IRS balance? On a free call, a licensed tax pro can help you compare the six-month option with longer plans for both debts.
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