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ADOR Delivers Options to those Struggling to Pay Individual Tax

June 26, 2024

The Arizona Department of Revenue (ADOR) is currently sending bill notices to taxpayers with an unpaid individual income tax liability for the 2023 tax year. For individuals who cannot afford to pay their individual income tax liability in full, ADOR offers a couple of options to help make payments.

Payment Plan
A payment plan is an arrangement with ADOR to pay tax debt incrementally within an agreed upon timeframe. Taxpayers can quickly and easily set up a payment plan (installment plan) without calling, emailing, or visiting the Department. Simply visit, then under the Individual menu, select Request a Payment Plan. By making a payment in full as soon as possible, taxpayers can avoid further penalties and interest. 

Additional instructions and details on the process can be found at Payment Arrangement Individuals. View our video tutorial for further assistance.

Offer in Compromise
Taxpayers may be eligible for an Offer in Compromise if they owe more tax than they can pay. To determine Offer in Compromise eligibility, taxpayers should consult the Department’s website. When submitting an Offer in Compromise, the taxpayer agrees to the waiver and suspension of any statutory periods of limitations for assessment and collections of the tax liability while the offer-in-compromise is pending, during the time the offered amount remains unpaid and for one year after the satisfaction of the terms of the offer-in-compromise.

For more information, view Offer in Compromise or fill out the Offer In Compromise Statement of Offer.

Owe on your state taxes and cannot pay? See our Collections page for a full scope of our services.