Wisconsin Dept of Revenue Installment Agreement: A Comprehensive Guide
Are you facing difficulty in paying off Wisconsin state taxes? If yes, then an installment agreement offered by the Wisconsin Department of Revenue (DOR) can be an option for you. This article will provide you a comprehensive guide about the Wisconsin DOR Installment Agreement program, its eligibility criteria, and application process.
What is the Wisconsin DOR Installment Agreement?
The Wisconsin Department of Revenue Installment Agreement is an option for taxpayers who cannot pay their state tax liability in full. The program allows eligible taxpayers to pay their taxes in monthly installments over a period of time rather than paying a lump sum amount.
Eligibility Criteria
To apply for the Wisconsin DOR Installment Agreement program, the taxpayer must meet the following criteria:
– The taxpayer must owe $5,000 or less in tax liability.
– The taxpayer must be current on all their state tax filings.
– The taxpayer must not have an active bankruptcy case.
– The taxpayer must not have an active wage garnishment or levy on their bank account.
Application Process
To apply for the Wisconsin DOR Installment Agreement program, the taxpayer must take the following steps:
1. Submit all outstanding tax returns.
2. Calculate the amount of tax owed.
3. Fill out Form PA-003, Installment Agreement Request.
4. Include the first proposed payment with the form.
Once the taxpayer has filled out the Installment Agreement Request form, they can submit it to the Wisconsin Department of Revenue by mail or by fax. The Department will review the application and send a notice of agreement or denial within 20 days.
Terms of the Wisconsin DOR Installment Agreement
If the taxpayer`s application is accepted, the Wisconsin DOR will set up an installment agreement with the following terms:
– The agreement must be paid off in full within two years.
– The taxpayer must make a minimum payment of $25 a month.
– Late payment penalties and interest will continue to accrue until the agreement is paid in full.
Conclusion
If you`re struggling to pay your Wisconsin state taxes, the Department of Revenue`s Installment Agreement program could be an option for you. By following the eligibility criteria and application process mentioned in this guide, you can begin the process of setting up an installment agreement to help you pay off your tax liability. Remember, the sooner you start, the sooner you`ll be able to pay off your tax debt and avoid further penalties and interest.