Table of Contents
- 1 What Is a Payment Agreement With the Ohio Department of Taxation?
- 2 Who Is My Payment Agreement With?
- 3 How Do I Establish a Payment Agreement?
- 4 What Terms Are Available for a Payment Agreement?
- 5 What Form Is Required to Establish a Payment Agreement?
- 6 Can I Make Payments Before the Payment Agreement Is Finalized?
- 7 Will Penalty and Interest Stop Accruing Once the Agreement Is in Place?
- 8 Does a State Payment Agreement Resolve Local Taxes?
- 9 Speak With a Columbus, Ohio Tax Attorney About State Tax Debt
Ohio taxpayers who owe state taxes may be able to resolve outstanding tax liabilities through a payment agreement, sometimes referred to as an installment agreement. This article explains how payment agreements work in Ohio (OH), who they are established with, and what taxpayers in Columbus should know when seeking to resolve state tax debt.
What Is a Payment Agreement With the Ohio Department of Taxation?
A payment agreement is a formal arrangement in which a taxpayer makes monthly payments to resolve outstanding Ohio tax liabilities.
Once in place, the agreement can act as a hold on enforcement, allowing the taxpayer to resolve the tax debt without the risk of bank levies, wage garnishments, or other collection actions.
Who Is My Payment Agreement With?
Although the tax liability is owed to the Ohio Department of Taxation, payment agreements are not established directly with the Department of Taxation.
Instead, the Ohio Attorney General is responsible for collecting past-due Ohio taxes. Payment agreements are established with the Attorney General’s office after the tax liability has been certified to that office.Generally, certification to the Attorney General occurs approximately 60 days after the tax is assessed by the Ohio Department of Taxation.
How Do I Establish a Payment Agreement?
Once the tax liability has been certified and a notice has been issued by the Ohio Attorney General, the debt is officially with that office.At that point, a taxpayer can establish a payment agreement by contacting the Attorney General directly.
What Terms Are Available for a Payment Agreement?
Payment agreements are generally set for a 12-month term.The Attorney General may consider a lower monthly payment if the taxpayer can demonstrate a financial hardship. In cases where financial hardship is established, other resolutions may be available, such as an offer in compromise, which allows the tax liability to be resolved for less than the total amount owed.
What Form Is Required to Establish a Payment Agreement?
There is no formal application or form required to establish a payment agreement with the Ohio Attorney General.Payment agreements can be established by phone once the debt is with the Attorney General’s office.
Can I Make Payments Before the Payment Agreement Is Finalized?
Yes. Taxpayers may make voluntary payments before the payment agreement is finalized.
Making payments early is generally beneficial because:
- Penalties and interest are reduced
- The total balance owed decreases
- The eventual monthly payment amount may be lower
However, voluntary payments do not prevent the tax debt from being certified to the Ohio Attorney General.
Will Penalty and Interest Stop Accruing Once the Agreement Is in Place?
No. Penalty and interest continue to accrue until the Ohio tax liability is paid in full.
Does a State Payment Agreement Resolve Local Taxes?
No. A payment agreement with the State of Ohio (OH) does not resolve local income taxes or property taxes. Local taxing authorities typically have their own procedures for resolving tax liabilities.
Speak With a Columbus, Ohio Tax Attorney About State Tax Debt
If you owe taxes to the State of Ohio, you may wish to speak with a Columbus tax attorney about your options.
A tax attorney can assist with resolving Ohio tax liabilities, ensuring future compliance, and addressing related tax planning matters. Contact the McGuire Law Firm to speak with a tax attorney in Columbus, Ohio, regarding your Ohio tax questions and payment agreement options.