If you owe a tax debt to the Georgia Department of Revenue and cannot afford to pay it all at once, you can request an installment payment agreement to settle your debt over time. Payment plans may not be for longer than 60 months and the minimum monthly payment is $25.
We can set up payment plans for both individuals and businesses. In some cases, we may deny your request for a payment plan or cancel a plan after it begins. The Department will not approve a request for a payment plan if:
- The taxpayer is in bankruptcy
- The taxpayer has a pending offer in compromise application filed with the Department
- The taxpayer has not filed state tax returns for the preceding five years.
How It Works
An installment payment agreement is a formal contract between you and the Department and can be requested online through the Georgia Tax Center for your outstanding tax debt. You will be able to propose a monthly payment amount, payment draft date, and number of installment payments under the agreement. The Department will send you a confirmation letter if your proposal is accepted.
The Department will charge a $50 fee for installment payment agreements where the payments are drafted by electronic funds transfer (EFT) and a $100 fee for those agreements where payments are sent to the Department by check. The fee may be lowered to $25 for individuals setting up a new payment plan if their Federal Adjusted Gross Income (FAGI) is less than $22,050.
The terms of an installment payment agreement cannot be changed once established. However, the Department may agree to cancel an existing payment agreement and create a new agreement with a different payment amount and schedule if necessary.
The Department may take other steps to collect your debt even if you have an active payment agreement, including offsetting your State or Federal tax refund.
Penalty and interest will continue to accrue on your tax debt until the balance is paid in full.