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.


INSTALLMENT AGREEMENTS TO RESOLVE PENNSYLVANIA BACK TAXES


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.  If you can pay it off within the first 6 months, do it!  Send payments to the address on your notice. 
            
Option 2:  After the Appeal period has expired, the DOR will allow a Deferred Payment Plan Agreement of 6 months without many questions.  Your first payment must be equal to 20% of your total tax liability and then the balance paid in 5 equal monthly installments.  

Option 3:  PA-DOR may allow Deferred Payment Plan Agreements longer than 6 months in some cases, but you will have to complete the Statement of Financial Condition for Individuals form and/or Statement of Financial Condition for Businesses form.  These types of Agreements are more difficult to attain, but it’s worth a try if you can’t pay the debt off within the time frames of Options 1 and 2.  

REDUCE YOUR PA-DOR TAX DEBT


Offer in Compromise


Pennsylvania Department of Revenue does not have an Offer in Compromise program that allows taxpayers to settle their PA-DOR outstanding tax debt for a lesser amount due to a lack of ability to pay.  But, the DOR does have the Board of Appeals Request for Compromise. 

The Request for Compromise will only be considered if there is a doubt that the liability is owed or if it promotes Effective Tax Administration, which takes a look at extraordinary reasons for not paying the tax.  

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.  

TAX RESOLUTION CASE EXAMPLES


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 1/4/2018

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