State of Louisiana Installment Agreement

The State of Louisiana Installment Agreement: What You Need to Know

If you`re struggling to pay your tax debt to the State of Louisiana, you may be able to set up an installment agreement. This allows you to pay off your balance over time, rather than in a lump sum. Here`s what you need to know about the State of Louisiana installment agreement.

Who Is Eligible for an Installment Agreement?

To be eligible for an installment agreement, you must:

– Owe less than $50,000 in tax debt, including penalties and interest

– Be able to pay off your balance within 36 months (three years)

– Have filed all necessary tax returns

– Not have any other installment agreements with the State of Louisiana

– Not be in bankruptcy proceedings

How to Apply for an Installment Agreement

You can apply for an installment agreement online or by mail. To apply online, visit the Louisiana Department of Revenue`s website and select “Installment Agreement Application” from the “Individual” menu. To apply by mail, fill out Form R-19026 and send it to the address listed on the form.

When you apply, you`ll need to provide:

– Your name, address, Social Security number, and phone number

– The tax type you owe (for example, individual income tax or sales tax)

– The tax periods you owe for (for example, 2018 and 2019)

– The total amount you owe, including penalties and interest

– Your proposed monthly payment amount and due date

– Your bank account information for automatic payments (optional)

Once your application is approved, you`ll receive a confirmation letter with the terms of your agreement. You`ll then need to make your monthly payments on time to avoid defaulting on the agreement.

What Happens if You Default on an Installment Agreement?

If you default on your installment agreement, the State of Louisiana may:

– Levy your bank account or wages

– File a tax lien against your property

– Take legal action against you

To avoid default, make sure you make your monthly payments on time and in full. If you`re unable to make a payment, contact the Louisiana Department of Revenue as soon as possible to discuss your options.

In conclusion, if you owe tax debt to the State of Louisiana and are unable to pay it off in a lump sum, consider setting up an installment agreement. Just make sure you meet the eligibility requirements and make your monthly payments on time to avoid any negative consequences.