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Colorado Tax Installment Agreement

As a resident of Colorado, it is important to understand the options available to you when it comes to paying your state taxes. One such option is the Colorado Tax Installment Agreement.

A Tax Installment Agreement (TIA) is an agreed-upon payment plan between the taxpayer and the Colorado Department of Revenue (CDOR). This plan allows taxpayers to make monthly payments towards their tax debt over a set period of time. The amount of the monthly payments and the repayment period will depend on the amount owed and the taxpayer`s ability to pay.

To qualify for a TIA, the taxpayer must have a valid balance due and be current on all tax filings. The CDOR may also require that the taxpayer provide financial documentation to prove their ability to make the monthly payments. Additionally, there may be a fee to enroll in the TIA program.

Once enrolled in the TIA program, it is important to make the monthly payments on time and in full. Failure to do so may result in the termination of the agreement and additional penalties and interest charges.

It is important to note that a TIA does not stop interest and penalties from accruing on the outstanding tax debt. Therefore, it is recommended that taxpayers pay off the debt as soon as possible to minimize these charges.

In conclusion, the Colorado Tax Installment Agreement is a useful option for taxpayers who are struggling to pay their state taxes. However, it is important to understand the requirements and obligations of the program before enrolling. For more information on the TIA program, visit the CDOR website or consult with a qualified tax professional.

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