CHARLESTON, S.C (WCBD)- With the individual income tax deadline rapidly approaching, some South Carolina residents might be worried about not being able to pay, but the South Carolina Department of Revenue wants taxpayers to know there are options.
Both the IRS and SCDOR offer payment plan agreements that allow qualifying taxpayers to pay off their balance over an extended timeframe.
IRS Payment Plans
Your specific tax situation will determine whether you are eligible for a payment plan with the IRS and which options apply to you.
If you owe $50,000 or less in combined tax, penalties, and interests, and have filed all required returns, you may qualify for a long-term payment plan which allows you to pay in monthly installments.
If you owe $100,000 or less in combined tax, penalties, and interest, you may qualify for a short-term payment plan which requires you to pay in 180 days or less
More information on the IRS options can be found here.
SCDOR Payment Plans
Individuals who are eligible for a SCDOR payment plan should have received a notice to request an agreement from the agency. In addition, individuals must not have any active garnishments or levies with SCDOR.
As part of the payment plans, taxpayers must agree to file and pay all returns throughout the duration of the agreement, have an active bank account, allow bank drafts for payment, file and pay estimated income taxes, and be willing to comply with periodic reviews of their financial situation.
To find out which payment option may be right for you, determine your balance owed:
|Balance Owed||Payment Terms|
|0 to $999||12 months or less|
|$1,000 to $4,999||24 months or less|
|$5,000 to $9,999||36 months or less|
|$10,000 and above||48 months or less|
More information on the SCDOR options can be found here.
Keep in Mind
You should not wait to file your tax returns. Filing on time will reduce the amount of penalty fees and interest you will owe to SCDOR and the IRS.
You also should not wait to begin paying your bill, even with an installment plan. You should pay as much as your can by the due date to ensure lower interest rates on future payments.
A payment plan is not your only option if you need help paying your tax bill. Review your options carefully.