Arizona Taxing Information
If you cannot pay your liability in full, you can request a monthly payment plan with the State. Should the request be accepted, you will need to comply with a set of regulations.
- You cannot incur any new liabilities while following the plan.
- You must pay your installments on time.
- You may be asked to provide a wide range of financial information, which will then be subject to review at any given time.
- You can be asked to complete additional documentation.
- Pay all late returns within 30 days.
If you fail to comply with the terms of the plan, the department may move to enforce them via tax liens or levies.
Wage Levy or Garnishments
When the state issues a wage levy to an employer, the employer is legally obligated to withhold a portion of your earned wages and send them to the state. A levy on wages is continuous and will remain in effect until the entire amount you owe (tax, penalty, and interest) is paid in full.
The state can also levy any tax refund, State or IRS. This action is called a refund offset.
Priority One: Stopping Aggressive Enforced Collections
Offers in Compromise
If you owe more tax than you are able to pay, you may qualify for an Offer in Compromise. To qualify, you must maintain at least two of the following factors:
- Reception of Social Security, pension, or other forms of public assistance
- Be over the age of 60
- Owe more in tax than the total worth of your estate
- Have gotten a significant reduction in income
- Have maintained your liability for over seven years
- Have your tax returns in order
- Be a principal member of a defunct business
If you are unable to complete a tax return or liability, or provide requested information, but demonstrate reasonable cause (i.e. ordinary business care and prudence), your penalties may qualify for an abatement.
A request for abatement via Arizona Form 290 is evaluated entirely by the evidence and documentation included therein.