Self-service payment plans Frequently Asked Questions

General

Why would I enter into a self-service payment plan if there is no relief from penalties or interest?

Peace of mind. As long as the terms and conditions of the plan are met, Revenue will not proceed with collection activities for debt in a payment plan. Entering into a payment plan is a way for you to regain control of a difficult situation.

You choose:

  1. Whether you will pay the debt in 3, 6, 9, or 12 months
  2. The monthly payment date

Payments are automatically withdrawn on the same day each month. If a recurring payment date falls on a weekend or holiday, the payment will be withdrawn on the following business day per RCW 1.12.060(3).

What kind of state taxes are self-service payment plans available for?

Self-service payment plans are available for qualifying excise tax accounts only.

Why should I make a down payment?

A down payment reduces the outstanding debt, which means:

  • You may pay less in interest and penalties over the term of the payment plan
  • Your monthly payments will be less
I have a pending balance amount when I try to set a payment plan, what does that mean?

Pending balances means that Revenue has not issued a bill for the tax liability…yet.

For example, if you filed a return but did not pay or made a partial payment, Revenue will process the return and then issue a bill. If you want to include the pending amount into the payment plan, you will need to wait until you receive the bill and then sign up for the payment plan.

How do I update the bank information for my payment plan?

Call 253-661-4279. Only an account administrator can call and request updates to bank account information. Changes to bank information should be made at least two (2) business days prior to the scheduled payment date.

You cannot update bank account information online in My DOR for payment plans.

I want to pay-off my debt in my payment plan early. How do I get the payoff amount?

The amount owed for your payment plan will be listed in My DOR. Go to the Summary page for your account and review the balance. You can also review your plan to verify which tax periods are included. You will want to make sure that your final payment is credited to the same tax periods as your plan. Click Make a payment to enter payment information to pay the balance of your plan. Learn more about how to make payments in My DOR.

What happens if I cannot make a scheduled payment?

If you feel you may not be able to meet the terms and conditions, please call 253-661-4279.

What does default mean?

For self-service payment plans, default means that your payment plan ceased because you did not follow the terms and conditions. Your balance(s) are due immediately. If the balance is not paid in full, your account will be referred to a revenue agent for collection.

Penalties and interest

How are my monthly payments applied to the debt in the self-service payment plan?

Monthly payments are applied in this order:

  1. Interest
  2. Penalties
  3. Tax liability

When more than one bill is included in the payment plan, the payments will apply to the oldest tax liability first WAC 458-20-228(8). There is no difference in how payments are applied when you pay a bill or if the bill is included in a self-service payment plan.

How is interest calculated for the self-service payment plan?

Interest included on a bill is rolled into the Starting Balance of the payment plan. If you enter into a payment plan before the due date of the bill, you may not see any interest in the Interest column for the first month because it was already included in the bill.

After the due date of the bill, interest accrues daily on the remaining tax. The self-service payment plan projects how much tax will be due each month after each payment is applied, and the amount of interest that will be due for the month based on the remaining tax balance. Interest rates are determined by RCW 82.32.050(2) and are the same whether the debt is included in a payment plan or not.

How is the penalty calculated in a self-service payment plan?

Some penalties are already included when the bill is issued. Any penalties assessed before you enter into a self-service payment plan are included in the Starting Balance in the payment plan. When a bill is not paid in full by the due date, additional penalty is due. If the bill is not paid in full by 30 days after the due date, another penalty is due.

Entering into a payment plan will not stop additional penalties from being assessed, so you may see additional penalties in the Penalty column of the payment plan. The self-service payment plan projects how much tax will be due each month after each payment is applied, and the penalty is based on the remaining tax balance. See WAC 458-20-228(5) for more information about penalties. The maximum amount of penalty that can accrue is the same whether the debt is included in a payment plan or not.