If you are struggling to make timely payments to the North Carolina Department of Revenue (NCDOR), don`t worry. The department offers flexible payment agreements to assist taxpayers in resolving their tax liability.
What is NCDOR Payment Agreement?
A payment agreement is an agreement between a taxpayer and the NCDOR that allows the taxpayer to pay their tax debt over time rather than in a lump sum. This option is available for taxpayers who owe a tax liability but are unable to pay the full amount in one payment.
How to Apply for a Payment Agreement?
To apply for a payment agreement, you must first file all necessary tax returns and receive a notice about your outstanding balance. The notice will provide you with information on how to apply for a payment agreement online or in writing.
If you are applying for a payment agreement online, you can log in to your NCDOR account and select the Payment Agreement option. You will need to provide information about your tax liability, including the amount you owe and the proposed payment amount per month.
If you prefer to apply for a payment agreement in writing, you can download the Payment Agreement Request Form from the NCDOR website and complete it. You will need to provide the same information about your tax liability and proposed payment amount per month.
What Are the Terms of the Payment Agreement?
Once you have submitted your payment agreement request, the NCDOR will review your application and determine whether to accept your proposal. If your proposal is accepted, the terms of your payment agreement will be outlined in writing and will include:
1. Monthly Payment Amount: The amount you will be required to pay each month towards your tax liability.
2. Payment Due Date: The date by which your payment must be received each month.
3. Interest and Penalties: The interest and penalties that will be assessed on your outstanding balance until it is paid in full.
4. Duration of the Agreement: The length of time you have to pay off your tax liability under the agreement.
5. Termination Clause: The terms under which the agreement can be terminated, including non-payment or failure to comply with the terms of the agreement.
If you are struggling to pay your taxes, don`t wait until the taxman comes knocking. Take advantage of the NCDOR`s payment agreement option and work out a plan to pay off your tax liability over time. Remember, timely payment of your taxes is important to avoid costly penalties and interest charges.