TAX DEBT RELIEF OPTIONS – Pennsylvania Department of REvenue

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Pennsylvania since 2007 nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


If you owe the Pennsylvania Department of Revenue and can’t pay the tax debt in full, you have 3 monthly payment options.  

Deferred Payment Plan Agreement

Option 1:  Pay your tax debt in full within 6 months of your first notice of delinquency.  This is the Appeal period, your chance to appeal the debt if you don’t owe it or if the amount is incorrect.  The DOR will not allow a formal Agreement during this period, unless you sign an Appeal Waiver form.  If you can pay it off within the first 6 months, do it!  Send payments to the address on your notice or pay online. 
Option 2:  If you owe less than $50,000 and can pay the debt in 12 months or less, a Standard Payment Plan is pretty easy to get from the PA-DOR. If you have any balances that are not yet in collections, you will need to sign an Official Appeal Waiver form.   

Option 3:  If you need more than 12 months, owe more than $50,000 or need to add newly accrued balance to a current payment plan, you'll need to apply for an Extended Payment Plan.  Be prepared to submit financial information to the PA-DOR to be considered for this option. In some cases, the Department of Revenue may require a 20% down payment to secure the Extended Payment Plan.    


Offer in Compromise

Pennsylvania Department of Revenue does have an Offer in Compromise program that allows taxpayers to settle their PA-DOR outstanding tax debt for2 reasons.
  • Doubt as to Liability
  • Doubt as to Collectibility
Check out Form REV-567 and Form DBA-10

Penalty Relief

There is a lot of misinformation out there pertaining to penalty relief and the PA-DOR.  PA-DOR typically will not abate penalties unless they were at fault and caused the tax accrual.  This is obviously tough to do and rarely happens.  

Quick Tip:  PA-DOR has a Taxpayer Advocate’s office that can help you if your tax liability is causing you a hardship.  


The Pennsylvania Department of Revenue Administration has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.

page last reviewed 01/15/2024

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