Search Category: Overdue

Compliance: Forms

Form CFS, Comprehensive Financial Statement (CFS)

Compliance

Avoid Tax Debts

Avoid Tax Debts

Forgot to File?

Forgot to File

Getting a
Tax Bill

Tax Bills

Payment Plans

Payment Plans

Interest and Penalty

Interest and Penalty

Forced Collection Action

Forced Collection

Bankruptcy

In Bankruptcy

Forms

Forms

If You’re In Bankruptcy

If you receive a tax bill and you’re involved in an ongoing bankruptcy proceeding, contact us and provide us with:

  • The name(s) on the bill and the billing letter ID number or reference number
  • The date your bankruptcy was filed
  • Your bankruptcy case number
  • The name of the person representing you in your bankruptcy (attorney)

If you haven’t yet filed all of your Idaho tax returns, you should do so. You’ll need to advise your attorney and trustee about the tax periods for which you owe, including the tax, penalty, and interest balances.

Temporary stop on collection activity

Your bankruptcy filing temporarily stops Tax Commission enforcement action to collect a debt related to tax periods that are “pre-petition” (i.e., before the bankruptcy petition was filed). You should pay in full or make payment arrangements to satisfy all debts associated with tax periods that are “post-petition” (i.e., after the bankruptcy petition was filed).

Discharge

Determining whether your tax debt can be discharged is a matter to discuss with your attorney. In many cases, your tax debt, or a portion of it, may not be discharged. Contact us as soon as possible after your bankruptcy is discharged to discuss payment arrangements.

Making Payment Arrangements

Pay tax bills in full by the deadline if you can. The benefits of doing so are:

  • You’ll avoid interest and penalties. Interest and possibly penalties apply to any balance you have after the deadline. They continue to accrue until the balance is paid.
  • You can avoid a state tax lien (Notice of Lien) on your property. We must record liens for some tax debts.

If you can’t pay your tax bill in full, pay as much as you can by the deadline. Then:

  • For income tax: See Payment plans below to request a payment plan online. This is the fastest method for requesting a plan.
  • For all other taxes: Call us at the phone number on your bill as soon as possible.

Methods of payment

We’ll work with you to find the best way to resolve your tax debt. We’ll analyze your ability to pay and consider different methods of payment.

You can pay by personal check, business check, money order, certified funds, credit card, ACH debit (automatic deduction), or ACH credit. You can pay by payroll deduction (“wage assignment”) at your place of employment if your employer agrees. Otherwise, we might ask you to:

  • Pay in full by credit card if we determine that you’re able to
  • Sell or mortgage assets to secure funds to pay
  • Secure a commercial loan to pay in full (businesses)

If you’re making a payment of $100,000 or more, Idaho law requires you to use ACH debit or ACH credit for all taxes except individual income tax. If you don’t pay by ACH debit or ACH credit when it’s required, we might charge you interest and a $500 penalty.

Payment plans

You might be able to enter into an agreement to pay your debt. To qualify, you must do both:

  • Be up to date on filing all other tax returns and payments
  • Agree to avoid any future tax debts

Businesses that owe for any tax type except income tax: Call us at the phone number on your billing letter to request a payment plan.

Individual and businesses that owe income tax:

You can request a payment plan online if you have one of these:

  • A letter we’ve sent you in the past two years. You can request a plan immediately. However, you must wait until after May 5 for the balance to post if you’re requesting a plan for the current tax year.
  • Your Idaho income tax return from either of the two most recent tax years, that we’ve processed. You can request a plan immediately.
  • Your basic information, if we’ve ever processed one of your returns. You’ll have to wait for a registration code, which takes 10 business days, before you can request a plan.   

When you request a payment plan, you’ll need to set up automatic payments from your bank account. Have your bank’s routing number and your account number ready.

 For married filing jointly: Be sure to request the payment plan using the information for the first person listed on your return. 

To request a plan for income tax using a recent letter

  1. Go to tax.idaho.gov/payplan.
  2. Enter your information. When asked for the Letter ID, look on a letter we’ve sent you in the past two years. The Letter ID is in the upper-right corner and starts with an “L”.
  3. Complete and submit your request.

To request a plan without a recent letter

  1. Go to TAP and click Sign Up (below the Log In button). 
  2. Choose one of these options:
    • Take a quiz for same-day access (if you have your processed return from one of the two most recent tax years)
    • Receive a letter with your registration code (if we’ve ever processed at least one of your returns)
  3. Fill out the registration.
  4. Do one of these:
    • If you got immediate access, go to the next step.
    • If you didn’t get immediate access, wait for your registration code in about 10 business days. Then, go back to TAP, click Sign Up again, and choose Already have your registration code. Finish your registration and then go to the next step, below.
  5. From your TAP account homepage, click More.
  6. Scroll down to the Payment Plans panel and choose Request a Payment Plan.
  7. Complete and submit your request.

See more information in the TAP Guide.

Payment plan requirements

Payment agreements, or payment plans, have strict requirements.  Not everyone qualifies for every plan.

The 24-month payment plan:

  • You must pay the debt within 24 months.
  • You might have to have your payment automatically withdrawn from your bank account.
  • We might have to file a lien to secure the state’s interest until you make the final payment. We don’t act on the lien if you’re in good standing with your payment plan. See Keeping your payment plan below.
  • Periodically, you might have to provide information about your financial situation to determine any change in your ability to pay.

Keeping your payment plan

You must make every payment on time. If you think you’ll be late on a payment, call us immediately at the phone number on your bill or (208) 334-7633.

A payment plan might be cancelled if you:

  • Don’t provide financial information when requested
  • Pay late or miss a payment
  • Don’t file future returns and pay taxes on time

We might have to take Forced Collection Actions if your payment plan is cancelled.

Your Tax Bills

If you don’t pay the full amount of tax owed, you’ll receive a tax bill, which begins the collection process.

It’s very important that you don’t ignore your tax bill. You should either pay the amount owed as indicated on the bill or contact the Tax Commission. All your tax bills include contact phone numbers.

Understanding your tax bill

When you file your tax return, we check to be sure the math is correct, the return is complete, and you’ve paid the correct amount of tax.

If you owe tax, but haven’t paid all of it, we’ll send you a Statement of Account. This bill will include the tax due, plus any applicable penalties and interest. Penalties and interest are calculated on the unpaid balance of your account from the date your taxes were due. Additional penalties and interest can accrue if a tax return isn’t filed by the due date.

If you disagree with your tax bill

Let us know right away if you believe your bill is incorrect. Call the Tax Commission phone number on your bill.

To help us correct the problem, we might ask you to provide more information.

Making payments on your bill

When you make payments on your tax bill, write the billing letter ID number on your check, and enclose the payment voucher if you received one. Also include the billing letter ID number on any correspondence you send us.

Additional tax bills

You might receive additional tax bills, including a Notice of Deficiency Determination and a Notice and Demand. It’s very important that you read each bill and any enclosed documents carefully and contact us early in the collection process. These bills are mailed to the last known address we have for you in our records.

If you take no action to pay

Before we take any of the following actions, we’ll try to contact you and give you the opportunity to pay voluntarily. However, if you don’t take some action to pay your tax bill, we may take some or all of the following actions:

  • Record a Notice of Lien
  • Serve a Notice of Levy
  • Seize assets (personal or business property, real estate) and sell them at auction

These are called Forced Collection Actions and are statutorily required to enforce collection of tax debts.

Private collection on overdue bills

The Tax Commission might transfer overdue accounts to Professional Credit Service (PCS), a private collection agency (Idaho Code section 63-119). We’ll notify you if we ever transfer your account. PCS will then start contacting you about the overdue amount.

You can contact Professional Credit Service at:

  • PCSDirectPay.com
  • (866) 320-6527 or (800) 555-1234  (both numbers are toll free)
  • PO Box 7548, Springfield, OR 97475-0039

Avoid a Tax Debt

Pay tax bills in full by the deadline if you can. The benefits of doing so are:

  • You’ll avoid interest and penalties. Interest and possibly penalties apply to any tax balance you have after the deadline. They continue to accrue until the balance is paid
  • You can avoid a state tax lien (Notice of Lien) on your property. We must record liens for some tax debts.

Use our penalty and interest estimator to calculate what you may owe for certain tax types.

Make payments before the due date

Although Idaho doesn’t require estimated tax payments for individuals, you can make payments toward your future tax debt any time during the tax year and until the due date. We accept cash, checks, money orders, credit cards, ACH credit, and ACH debit payments.

You can make payments:

Read about all payment options on the E-Pay page.

Adjust your W-4 amount

We urge you to update your paycheck withholding for both federal and state taxes.

Information, guides, and forms are available on the tax.idaho.gov/w4 page.

Double-check your tax return

  • Review the return for accuracy before sending it.
  • Verify that the correct address is on the return.
  • Check for the correct Social Security numbers.
  • Make sure W-2 information is correct when e-filing.
  • Provide a driver’s license number when e-filing.
  • Verify banking information when using direct deposit.

Compliance and Audit: Interest and Penalty

We assess interest and penalties according to law.