How to Request a Payment Plan
What is a Payment Plan (Installment Agreement)?
If you cannot completely pay your tax debt on it’s due date, you may request a payment plan with the Colorado Department of Revenue. Qualified taxpayers are allowed to make monthly payments until the taxes are paid in full. There are no additional fees to participate in a payment plan. However, standard late payment penalty will be charged, and interest will accrue during the life of the plan. Additionally, any subsequent tax refunds you claim will be applied to your outstanding tax bill.
Not paying your taxes when they are due may cause your account to be referred to collections.
What is a Violated Payment Plan?
A payment plan is considered violated if you do not:
- Sign and return the waiver what was included in your paperwork.
- Make the full monthly payment on time.
- File and pay future tax returns when they become due.
- Provide a completed Statement of Economic Hardship (DR 6596) when requested.
If your payment plan is violated, the Department will cancel your plan and send you notification in writing. At such time, the balance of tax, penalty and interest will become due in full.
You can request a payment plan on current year individual income tax debt before receiving a bill, but you must wait until after April 15 and must do so by contacting the Collections Section by phone at (303) 205-8291.
Payment plans for business tax debt (such as sales tax and wage withholding) can only be requested by speaking with a Compliance Agent at (303) 866-3711. Agents are available from 8:00 a.m. to 4:30 p.m. Mountain Time, Monday through Friday.
For more information, visit the Business Tax Installment Agreement web page.
For CDOR Agent Assistance
- Call 303-205-8291 during normal business hours and have your tax bill handy.
- Our CDOR Agent will discuss your options for a monthly payment, we will send you the agreement paperwork. You must abide by the terms of the agreement or the Department will cancel your payment plan.
- Once we agree on the amount of your monthly payment, we will send you the agreement paperwork. You must abide by the terms of the agreement or the Department will cancel your payment plan.
- If our payment terms create a financial hardship, you may request extended terms by completing and mailing your Statement of Economic Hardship form (DR 6596). However, you must make your regular monthly payments while your application is being reviewed.