Request a Payment Plan for Unpaid Individual Tax Liabilities

Phoenix, AZ—Owe on your state taxes and cannot pay? For taxpayers unable to pay their individual income tax liability in full, the Arizona Department of Revenue (ADOR) offers a convenient way to request a payment plan and manage their liability. A payment plan is an arrangement with ADOR to pay tax debt within an agreed-upon timeframe. 

Through the AZTaxes.gov website, taxpayers can quickly and easily set up a payment plan rather than phone or mail, and it also reduces the number of calls and paper submissions to be processed.

To set up a plan, go to AZTaxes.gov and under the Individual menu, select Request a Payment Plan.

Please note that the portal is for submitting the payment plan request. It does not automatically create a plan in the system; therefore, allow time for ADOR to process the request and then we will send a confirmation letter with details and timelines.

Establishing a payment plan request in ADOR’s system takes approximately 60 days after the tax liability is billed and the Payment Plan request is submitted. Once submitted and approved, the taxpayer will be provided a confirmation number and a monthly installment payment amount. Taxpayers do not need to wait for confirmation to start making payment.

What you should know if considering a payment plan:

• If a bill has been received for the tax period in question, then the process to establish a payment plan request in ADOR’s system may take up to 2 weeks.
• If you have not received a bill for the tax period in question, then the process to establish a payment plan request in ADOR’s system will take up to 8 weeks.
• While on a payment plan, taxpayers must not incur any new liabilities, but will continue to incur interest until the outstanding liability is paid in full.
• Payments must be made on time per the payment arrangement and through AZTaxes.gov.
• If the payment plan defaults, ADOR can and will enforce without notice through a levy and/or lien action.

View our video tutorial for further assistance on requesting a payment plan.

Wednesday, April 26, 2023