Are you struggling to pay off your tax debt to the State of California? If so, you may be able to set up an installment agreement to make monthly payments over time.
An installment agreement is a payment plan that allows taxpayers to pay off their debt over a period of time, rather than in a lump sum. This option can be helpful for those who cannot afford to pay off their debt in full at once.
To set up an installment agreement with the State of California, you must first file all of your required tax returns and have an unpaid tax debt of $10,000 or less. If your debt is greater than $10,000, you may still be able to set up an installment agreement, but you will need to provide additional financial information and may be required to make larger monthly payments.
To apply for an installment agreement, you can either apply online through the California Franchise Tax Board’s website or by filling out and submitting Form FTB 3567. You will need to provide certain information, such as your Social Security number, the amount of your tax debt, and the monthly payment amount you are proposing.
Once you have submitted your application, the Franchise Tax Board will review your information and determine whether you are eligible for an installment agreement. If approved, you will receive a notice outlining the terms of your agreement, including the monthly payment amount, due date, and interest rate.
It is important to understand that interest and penalties will continue to accrue on your tax debt until it is paid in full. However, by setting up an installment agreement, you can avoid additional collection actions, such as wage garnishment or bank levies.
If you are struggling to pay off your tax debt to the State of California, consider setting up an installment agreement. This option can provide you with a manageable monthly payment plan, while also helping you avoid more drastic collection actions. Contact the California Franchise Tax Board today to learn more about your options.