If you’re unable to pay the entire tax bill within the first 45 days, you should pay what you can in order to avoid additional interest and penalties. Please be aware of the following when asking for a payment plan:
- After 45 days, a 25% cost of collection fee will be added to your Notice of Tax Due.
- The department may file a Notice of State Tax Lien.
- The department may require that electronic payments (E-check) be used.
- The department may offset any qualifying refund and apply it to your debt.
- You may be asked to submit a Statement of Financial Condition. This document reflects your current economic situation and includes both income and expense information.
If your debt is currently being handled by the Division of Collections you can set up your own payment plan by going to the following website
https://iia.ky.gov/IPA/prlPADisclaimer.jsp. You will need your case number from any Division of Collections’ letter. Follow the on-line instructions. If you do not qualify for an on-line payment agreement, you will be directed where to call.
When calling us about your tax debt, please have the following information available:
- Your tax identification number or social security number
- Your Collections’ case number
- Bank information, such as routing and account number
If you decide to pay your debt in full, credit card and ACH debits can be made at
- A revised Notice of Tax Due will be mailed if there is still an amount due.
- You will receive a payment agreement reminder letter advising you of when your next payment is due.
- Make sure there is money in your account on the date your payment is sent. Failure to have money in your account will result in cold check fees. If the payment is for more than $500.00, it is considered a Class D felony and the Department might pursue criminal charges.
If you believe you are experiencing a financial hardship that prevents you from paying your debt in full contact us at 502-564-4921. Note: financial hardship and financial inconvenience aren’t the same and your situation may not meet the definition of “financial hardship”.
The Division of Collections Offer in Settlement Program allows the Department to settle a case for less than what is actually owed. Qualifications for eligibility depend on your case and financial situation. Click here to read more about it.