Get started resolving your state tax liabilities using the information below.  If you still need help, reach out to us using the contact form to the right of this page.

The Pennsylvania Department of Revenue has gotten a bit stricter in recent years.  Monthly Payment Agreements aren't quite as forgiving as they once were.  

PA-DOR Monthly Payment Plan

It seems complicated at first glance, but it's simple once you break it down.  During the Appeal period and after the Appeal period.

A payment plan to pay back taxes can't be set up until your Appeal period is over, about 6 months.  However, you can make payments during this time.  It's a good idea to pay as much as you can during the Appeal period because you will be hit with penalties and interest based on the amount owed.

Once the Appeal period is over, you get 6 months to pay through a Deferred Payment Plan.  The first payment needs to be 20% of the total amount owed.  The remaining balance will be split into equal payments over the next 5 months.  You may also be asked to complete a Statement of Financial Condition form and provide other financial documentation such as copies of tax returns, pay stubs and income statements.

If you can't meet the Deferred Payment Plan conditions, your case may be sent to a collection agency, which typically comes with more fees.

Contact the PA-DOR Collection Unit directly to set up your Deferred Payment Plan.

State of Pennsylvania Offer in Compromise

In 2011 the Revenue Department Board of Appeals started accepting requests for Compromise of tax liabilities.  But, simply citing a lack of funds to pay won't get you a tax settlement.  The Offer in Compromise is reviewed by the Board of Appeals and will only be considered when it illustrates doubt regarding the liability and/or if it promotes Effective Tax Administration.

Personal Income Tax Forgiveness

If you expect to owe personal income tax to the State of Pennsylvania, you may qualify for PA Tax Forgiveness.  To receive Tax Forgiveness, you need to file a PA personal income tax return (PA-40) and complete Schedule SP.  It is determined by family size, marital status and income.  See the REV-631 brochure for more information.

Penalty Relief

Penalty abatement is very difficult, near impossible, unless you can prove that the PA-DOR is at fault.

page last reviewed 10/27/2021


Our Specialties

  • Tax Debt Resolution / Tax Relief
  • Offer in Compromise / IRS Settlement
  • IRS Penalty Abatement and Relief
  • Installment Agreement / Monthly Payment Plan
  • Tax Lien, Levy and Garnishment Removal
  • IRS Lien Subordination, Withdrawal, Discharge
  • Enrolled Agents / Tax Debt Specialists

Fresh Start Tax Relief LLC, Taxes - Consultants & Representatives, Chicago, IL

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