If you owe a tax debt to the Georgia Department of Revenue and cannot afford to pay it all at once, you can request a payment agreement to settle your debt over time. Payment agreements may not be for longer than 60 months.
We can set up payment agreements for both individuals and businesses. In some cases, we may deny your request for a payment agreement or cancel an agreement after it begins. The Department will not approve a request for a payment agreement if:
- The taxpayer is in bankruptcy
- The taxpayer has a pending offer in compromise application filed with the Department
- The taxpayer has not filed all state tax returns required to be filed with the Department
- The tax debt has been assigned to one of the Department’s private collection agencies
How It Works
A payment agreement is a formal contract between you and the Department. The general process is outlined below.
- You request a payment agreement for the debt you owe the Department and propose a payment amount and schedule. You can do so online using the Georgia Tax Center.
- If the Department accepts your request, the Department will send you an approval letter that details what you owe, the monthly payment amount, the number of monthly payments, and the date of your first payment.
- The Department will charge a $50.00 fee to set up a new payment agreement where payments are sent by electronic funds transfer (EFT). A $100.00 fee will be charged for new payment agreements where payments are sent by paper check. This non-refundable fee is added to what you owe and figured into the agreement. A $25.00 fee may be charged for individuals setting up a new payment plan depending upon their latest federal adjusted gross income.
- Once you enter into a payment agreement, you cannot change the terms of that agreement. In some cases, the Department may agree to cancel an existing agreement and set up a new one with a different payment amount and schedule.
- Even if you have a payment agreement, the Department may take other steps to collect your debt, including taking your state or federal tax refund.
- Interest will continue to accrue on your tax debt until the amount is paid in full.