Wisconsin tax payment plan with the DOR

Cost of a Wisconsin payment plan

Wisconsin shows openly how costly delinquent tax becomes. Once your appeal rights and the assessment due date have passed, the tax is delinquent. The DOR delinquent tax FAQ then lists the additional charges:

• What you owe carries a collection fee of $35 or 6.5%, whichever of the two amounts is larger.
• Interest of 18% per year is charged monthly on the tax balance
• Signing up for a payment plan requires a $20 fee
• Legal collection steps involve costs, such as lien filing fees and garnishment fees

Three ways to ask for a plan

The department says paying the full amount is preferable to using a plan and private loans generally offer better terms. If a plan still fits your needs, you can request one through these options:

• Set up My Tax Account, then add your accounts and select Manage My Collection
• In the Payments area, select Request a Payment Plan. Enter your bank details, the letter ID from your bill, your SSN or FEIN, plus your email address.
• Mail, fax or email the Payment Plan Request form A-771 to the Compliance Bureau

Requirements after entering the plan

File every return on time, pay it on time and make each expected payment. Meeting these requirements keeps other collection actions from proceeding. Refunds or payments owed to you by the federal government, Wisconsin or other states still go to the DOR, which applies them to the debt.

The state may also issue a tax warrant to secure the debt. Filing a tax warrant with the Clerk of Court creates a lien on your property in that county. This record is available to the public and may affect your credit or a real estate sale. The filing cost, now $10, raises your balance.

When no plan is ever set up

Wisconsin can order a wage attachment if you do not have a plan in place. Your employer then withholds up to 25% of your gross pay until the debt is paid off. Under a bank levy, money in accounts you can access may be held and collected. This includes joint accounts. Marital property law may also allow collection of a spouse’s tax debt from your pay.

After your appeal rights end, a debt of more than $5,000 that stays unpaid for 90 days may put your name on the delinquent taxpayer list. Entering a valid payment plan keeps your name off the list. Without an approved plan, paying only part of the debt leaves your name on the list.

When even a plan is beyond what you can manage

Through a Petition for Compromise of Taxes, Wisconsin will settle certain debts at a lower amount. This option is for people who can never repay their debts over time, whether their resources are very limited or their debts are very large. Form A-212 is for individuals, while Form A-213 is for businesses. Each form requires the proof listed with it.

Through My Tax Account or Form A-772, you can request a reduction if a wage attachment leaves too little for living costs.

Wisconsin and the IRS each have their own deal

Your Wisconsin plan does not cover a federal balance. The IRS establishes its own installment terms. You will therefore send two monthly payments, one to each agency. Keep both current, because missing a state payment starts the collection steps listed above all over.

Nearby states

• Minnesota
• Iowa
• Illinois
• Michigan
• All states