Payment Plan Information
What is a Payment Plan (Installment Agreement)?
If you cannot completely pay your outstanding tax debt, you may request a payment plan (installment agreement) with the Colorado Department of Revenue. The Department may allow you to make monthly payments until your debt is fully paid.
During the life of the agreement, interest will continue to accrue on a prorated basis and any tax refunds you claim will be issued to pay down your debt.
What is a Violated Installment Agreement?
The Department can cancel a payment plan (installment agreement) after it begins, if it has been violated. A payment plan is considered violated if you do not:
- Sign and return the waiver that was included with your paperwork
- Make the full monthly payment on time
- File and pay any tax return due
- Provide a completed Statement of Income and Expenses (DR 6596) when requested
If your payment plan is in violation and is subject to being canceled, the Department will notify you in writing.
How To Request a Payment Plan
Individuals
After you receive a bill, you may request a payment plan (installment agreement) accessing Revenue Online and by creating a login.
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.
Businesses
Payment plans (installment agreements) 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.
Next Steps in the Process
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A Collections Representative will discuss your options for a monthly payment, according to how much debt is outstanding and in consideration of your financial situation. The goal is to have the debt paid as soon as possible.
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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.
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If our repayment terms create a financial hardship, you may request extended terms by completing and mailing your Statement of Income and Expenses (DR 6596). However, you must continue to make your regular monthly payments while your application is being reviewed.