The Department of Revenue is processing 2023 income tax returns. For more information, please read the Department's announcement.

 
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Payment Frequently Asked Questions

 

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1. Are there processing fees?

Yes, processing fees are charged to the taxpayer, and are automatically included in the total payment. The processing fees are calculated as follows:

  • E-check: Amount Due + $1.00
  • Credit/Debit Cards: (Amount Due + 75¢) x 2.25%
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2. How do I pay by credit card, debit card or e-check?

Visit the Pay Online by Credit/Debit Card or E-Check web page for step-by-step directions on how to pay with one of these methods.

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3. How do I pay with a check or money order?

Paying with an electronic method, like electronic funds transfer or e-check reduces processing time and errors. Please note that applicable penalties and interest continue to accrue while your check payment is in transit and being processed. If you wish to pay with a check or money order, visit the Check or Money Order Payments web page for more information.

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4. How do I pay with cash?

Taxpayers should only pay in cash if there is no other option available to them and they have received a tax bill. Also, be sure to check the Payment Options by Tax Type web page to ensure that cash payments will be accepted for your tax bill. If you can only pay in cash, visit the Cash Payments web page for more information.

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5. How do I pay with Electronic Funds Transfer (EFT)?

Visit the Electronic Funds Transfer web page for information on how to set up an EFT account and how to process an EFT payment.

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6. I am not able to pay my tax bill in full. How do I set up a payment plan?

If you cannot completely pay your outstanding tax debt, you may request a payment plan (also known as an installment agreement or an agreement to pay). The Department may allow you to make monthly payments until your debt is fully paid. If you would like to request a payment plan for an individual or couple filing jointly, visit the Individual Income Tax Payment Plan web page. If the tax debt is for a business, visit the Business Income Tax Installment Agreement web page for more information.

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7. I do not agree with the bill or notice I received. How do I file a protest?

Taxpayers who disagree with the balance due notice have the right to protest the amount due. The protest must be filed in writing within 30 days of the date on the Notice of Deficiency. Refer to your correspondence for any specific documentation required. Review the Protest Rights web page for information on how to file a protest.

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8. What happens if I don't pay?

Bills are issued by the Department when you do not pay your tax in full when you file your return, if you owe penalties and interest, or if you did not file a return and the Department filed one on your behalf. If you do not pay or protest the bill within 30 days of the date on the Notice of Deficiency, the Department will issue a Final Determination and Demand for Payment.

Should you fail to pay the balance in full or start a monthly payment plan after the Final Determination notice is sent, the Department may take certain actions to collect your unpaid taxes. For more information on that process, visit the Collections web page.

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9. What is Form 1098-F?

The IRS created Form 1098-F due to new federal laws and regulations about reporting fines, penalties, and other amounts that are not deductible. Based upon guidance from the IRS, taxes and related interest must also be reported. 

Effective for 2022 forward, a governmental entity is generally required to complete Form 1098-F if a taxpayer or group of taxpayers owed amounts that totaled $50,000 or more and included any fines or penalties. These reports must be sent to taxpayers by January 31 of the following year, and to the IRS. 

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10. What do I do with Form 1098-F?

If you receive a Form 1098-F from the Department, be sure you carefully review the federal laws and regulations regarding allowable deductions, and retain the form for your records. For more information, see the instructions for IRS Form 1098-F and the related federal regulations