Making Installment Payments for Individuals or Businesses
You can use these methods to make installment payments:
Personal checks, business checks, money orders, certified funds; credit card payments, automatic deduction from your financial institution (ACH); or Payroll deductions that your employer agrees to take from your salary and send to the Division of Revenue in regular payments.
Payment plans over 24 months require that your payment be automatically deducted from your financial institution or a voluntary wage deduction to avoid a tax lein being filed. You may pay on an automatic deduction plan for up to 48 months without requiring the filing of a judgment.
Payment plans in excess of 48 months still require that we file a judgment to protect the interest of the Division of Revenue
If you have an installment agreement, you must make each payment on time. If you cannot pay on time, let us know why immediately.
Caution: While you are making installment payments, we will continue to charge your account with interest and penalties on the unpaid balance of taxes you owe, plus interest on the unpaid balance of penalties and interest you owe. We will also offset any Delaware, Maryland or Federal refund to your balance due.
Other actions that we may take include the following:
Filing a Notice of judgment to secure the state’s interest until you make the final payment; Requiring you to provide current information on your financial condition to determine any change in your ability to pay; and ending the installment agreement if you do not provide financial information when requested or if you do not meet the terms of the agreement, such as paying late, missing a payment, or not filing or paying all required tax returns. If this happens, we may take enforced collection action.
NOTE: Because your agreement is based on your financial circumstances, it could change. However, you will receive a letter 30 days in advance of any change we would make to your plan.
If we determine that you cannot pay any amount of your tax debt, we may temporarily delay collection until your financial condition improves. If we delay collection, the amount of your debt will increase because we will continue to charge a penalty for late payment and interest on your debt. During a delay, we will review your ability to pay. We will file a Notice of judgment to protect the State’s interest in your assets and send you a reminder to pay.
Owe Back Taxes
If you are entitled to receive a tax refund while you still owe unpaid taxes, we will automatically apply the refund to pay the unpaid tax debt and refund any remaining balance to you.
If you are involved in an ongoing bankruptcy proceeding, contact your local Division of Revenue office. While bankruptcy proceeding may not eliminate your tax debt, it will temporarily stop Division of Revenue enforcement action to collect a debt related to the bankruptcy. The Division of Revenue may continue to audit, demand tax returns, and assess the tax.