If you have fallen behind on tax payments as a result of financial hardships, it is pivotal to understand your options. For example, if you owe property taxes and you fail to address these debts, you could face a number of consequences, whether you have no choice but to close your business or you face additional financial penalties.
Failing to pay taxes on time is a serious matter, but there are options. In some instances, people can set up payment plans and work out arrangements with the state in order to manage their tax debts.
Financial difficulties and tax payment plans
The Illinois Department of Revenue provides information on payment plans due to tax delinquency. According to the IDOR, some people who have tax debts owed to the state can set up a payment plan in order to make payments on a monthly basis. However, certain conditions apply. For example, you need to have filed all tax returns on time. The repayment schedule and amount will depend on your financial circumstances, and it will include outstanding liabilities.
Considerable tax debt and repayment options
If you have considerable tax-related debt, it is particularly important to avoid additional penalties. If you owe more than $10,000 in back taxes to the Illinois Department of Revenue, you will have to fill out Form EG-13-I or Form EG-13-B. The IDOR will inform you if they accept your payment plan after processing your request.
It is essential to address tax delinquency in a timely manner and to understand all of the resources and repayment options that are available.