Consider an Installment Agreement for Your Clients with Tax Bills
Now that you’ve got those returns filed for your clients, some of them may be returning to your office with Statements of Tax Due from us. Some may have forgotten to send in a check, or if they were short on cash, they may have sent in a partial payment, or no payment at all resulting in the tax bill. The best advice you can give them is to contact us immediately to let us know the situation and to discuss payment options.
We offer a variety of methods your clients may use to pay the tax with a balance-due return. Individuals can use Web Pay, EFT, credit cards, Western Union, and checks or money orders. However, if your client is in a true financial crisis, he or she may be eligible to make monthly payments to us using an installment agreement.
To start the installment agreement process, an individual must first fill out a simple form to request an installment agreement. FTB Form 3567, Installment Agreement Request, can be completed online or mailed to us. An installment agreement can also be applied for by calling us at 800.689.4776.
We normally grant an agreement without requiring financial information if an individual taxpayer:
- Owes a balance of $25,000 or less.
- Agrees to pay the full amount in 60 months or less.
- Has filed all required personal income tax returns.
Once the client has applied for an installment agreement, we will either approve or deny the agreement. In some cases, we will request additional financial information from your client. Our decision to approve the agreement is based on ability to pay and compliance history. When applying for the installment agreement, they client should provide complete information, including bank information for an automatic debit. Failure to provide complete information will delay and possibly cause us to deny the application.
If the application is completed online, the status can be checked by using the client’s social security number and confirmation number found on installment agreement confirmation page. If the application was mailed or requested by phone, we send a written notification within 30 days. If you do not hear from us after 30 days, call us at 800.689.4776 during business hours. During this time, you should advise your client to begin making payments as proposed in the agreement application. If the installment agreement is approved, this amount will be due on a specific day each month for the duration of an agreement. Missing a payment or having a payment dishonored may result in the installment agreement being revoked or cancelled.
If your client is a business entity, they may also qualify for an installment agreement. Business entities must call us at 888.635.0494 to request an agreement.