Georgia Tax Payment Plan

Georgia tax payment plan options

If you owe back taxes in Georgia, you may be eligible for a payment plan.

A Georgia tax payment plan is a formal contract between the taxpayer and the Georgia Department of Revenue (GDOR) for resolving back taxes. This type of tax relief is available for individuals and businesses.

Through the Georgia Tax Center, you can propose payment amounts, due dates and repayment terms. The minimum monthly payment is $25, and payment terms must not exceed 60 months.

If your request is approved, the GDOR will send a confirmation letter.

Georgia tax payment plan requirements

To qualify for a Georgia tax payment plan, you must have filed all your tax returns to date.

While there are no income thresholds you must meet for tax relief, the GDOR imposes some restrictions on its tax payment plans.

• You cannot currently be in bankruptcy proceedings.
• You cannot have a pending offer in compromise application with the GDOR.
• Your case cannot already be assigned to a private collection agency.

Any tax refunds you are due for current or future years will be attributed to your tax debt. This applies to both state and federal tax returns. Depending on the amount, this offset may change the number of payments under your tax plan or resolve your debt entirely.

Georgia tax payment plan application steps

You can apply for a Georgia tax payment plan online or by mail. 

How to Apply for a Georgia Tax Payment Plan

You should only propose payment terms that you’re confident you can fulfill. Before applying, be sure to review your tax file for errors that could lead to an unnecessary denial.

Online application

To apply for a Georgia tax payment plan, follow these steps.

1. Log in to the Georgia Tax Center online.
2. Select the More tab.
3. Go to Payments and Returns.
4. Select Request Payment Plan.
5. Review the terms for your payment plan, then select Next.
6. Enter your banking information and select Next.
7. Enter the first payment date (choose between the first through the 28th) and the number of payments. Add the proposed monthly payment amount ($25 minimum). Then select Next.
   • If you’re making a down payment, add the amount and date.
8. Add your email address and agree to receive GTC electronic notices regarding your payment plan. Select Next.
9. Review the payment plan details.
   • If you accept, select Yes, then Submit.
   • If you do not accept, select No and then Cancel. You will then be prompted to submit a new request.
10. Enter your GTC password for debit authorization, then select OK.
11. You will be directed to a confirmation page displaying your confirmation number. Select OK to return to the home page.

Applying by mail

Alternatively, you can opt to apply by mail. To do this, print and complete Form GA-9465 Installment Agreement Request and follow these instructions.

• Line 1. Enter the Letter ID from your GDOR tax notice.
• Line 2. Check the box for the correct tax type and identification number.
• Line 4. Add the total amount of tax you owe, as provided on your tax return or notice.
• Line 5. Enter the proposed number of months for your installment plan (maximum 60 months).
• Line 6. Enter the proposed monthly payment amount ($25 minimum).
• Line 7. Add your preferred payment date (first to 28th).
• Line 8. Add the routing and account numbers to specify from where you want your payments withdrawn. Write “VOID” across the front of a blank check and attach it to your form.
• Line 9. Sign the authorization for payment plan terms and monthly withdrawals.

To avoid processing delays, the GDOR offers these tips:

• If your request is for a joint tax return, add the names and Social Security numbers of both filers. Be sure to list them in the same order as shown on your tax return.
• If your request is on behalf of a business, add the name of the party responsible for taxes, according to the SSN provided under Line 3.

If your proposed tax payment plan is approved, you’ll receive a notice online including specific terms.

• To review, log in to your GTC account and select the Actions Center tab.
• Select "You have an unread message," then select the link to "GTC Payment Plan - Approved."

You can expect it to take up to 30 days to receive a decision from GDOR regarding your proposed tax payment plan.

Georgia tax payment plan costs and fees

The GDOR only accepts electronic payments from checking and savings accounts at a bank or other financial institution.

Some additional costs apply to Georgia tax payment plans.

Georgia Tax Payment Plan Fees

Keep in mind that interest and penalties on unpaid tax debt continue to apply monthly until the total tax liability is resolved.

Interest

The GDOR assesses interest on all unpaid debt each month, according to the following schedule.

Georgia Unpaid Income Tax Interest Rate

The interest rate is reviewed and adjusted as necessary every January.

Penalties

In addition to interest, you may be responsible for paying the following penalties.

Making payments on your Georgia tax plan

All payments for Georgia tax plans must be withdrawn electronically from a checking account based at a bank or another financial institution, including credit unions, brokerage firms and mutual funds.

You can make online payments for 2007 through the present tax year. You do not need an account for quick payments, but if you create one, you can save multiple payment methods for easier payments in the future.

There are several ways to pay.

• Quick payments. You can make a quick payment online without a GTC login. However, you will need to provide either your Social Security number or Tax ID number if you choose this method.
• Credit card payment. You may make an online payment using a credit card if you received a Statement of Account letter that includes a payment number. There’s a 2.31% convenience fee for credit card payments, and you can’t make credit card payments for amended returns.
• PayPal. PayPal is an accepted payment method, but transactions have a $1 minimum.
• Paper. U.S. mail is also an option when you pay by check or money order.

To pay off your debt faster — and avoid additional fees and penalties — you may make extra payments or increase your payment amount.

How to Make Georgia Tax Payment Plan Payments

Modifying or canceling your Georgia payment plan

Georgia tax payment plans may be terminated or modified, depending on your circumstances.

Plan cancellation

When you enroll in a Georgia tax payment plan, you agree to make payments according to the plan terms. This includes making timely payments for the total amount due each month. Your tax payment plan may be canceled if you fail to pay any tax balance for subsequent tax returns filed in future years.

Your plan may also be canceled if you fail to make timely payments. Before this happens, you should receive an official notice from the GDOR informing you that your plan is at risk and advising you on next steps. If you still fail to make the agreed-upon payments, your plan will be terminated.

At this point, the GDOR may pursue debt collection efforts, resulting in an additional 20% collection fee. You may also be subject to a bank levy, tax lien or wage garnishment.

Plan modification

The terms of a Georgia tax payment plan cannot be changed unless you receive explicit approval from the GDOR.

You are not eligible for a plan modification if you:

• Are in bankruptcy.
• Have a pending offer in compromise.
• Have not filed, or are missing, required state tax returns during the preceding five years.

While the GDOR is determining your case, you must fulfill the payment obligations for your existing plan.

If your modified plan is approved, your existing plan will be canceled, and a new one will go into effect with an adjusted payment amount and due date. Changes must be made five days before the next scheduled draft.

Plan modifications carry a $50 administration fee, or $25 if your income is below $22,050. Keep in mind that the GDOR may also pursue collection efforts against you at any time.

Alternatives to Georgia tax payment plans

Peach State taxpayers have alternatives to Georgia tax payment plans.

• Offer in compromise. Taxpayers in Georgia may apply for an offer in compromise. If your offer is accepted, this type of tax forgiveness allows you to settle your tax bill for less than you owe. To qualify, you must be current on all tax return filings, not be involved in a bankruptcy case and be current on all required estimated payments.
• Tax relief company. You can work with a private tax relief company to resolve your debt independently. Explore our picks for the best tax relief companies.
• Professional support. You can get help with back taxes by working with a tax professional.

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