Massachusetts Individual Income Tax Payment Plan Checklist

Massachusetts individual income tax debt over time through scheduled tax payments. If you ignore an overdue bill, DOR can file a tax lien, issue bank levies, start wage garnishments, or suspend your driver’s license or professional licenses.

Who This Checklist Is For

This checklist applies to you if

• Massachusetts individual income tax remains unpaid for one or more tax years.
• The Massachusetts Department of Revenue has sent a bill or collection notice.
• Current financial circumstances prevent full payment of the tax debt.
• Reducing exposure to liens, levies, wage garnishment, or license suspension is

important.

• Filing status is individual, not business-related.

Payment plans are not available if

• An active criminal tax prosecution exists.
• Fraud indicators are present on the account.

Steps to Request a Payment Plan

1. Step 1: Gather Your Tax Documents

   Collect your bill or notice and record the tax year(s), total amount owed, and listed penalties and interest. Keep your Social Security number and updated contact information available, and request a Statement of Account or account transcript from DOR if you do not have a recent notice.

2. Step 2: Verify Your Current Income and Monthly Expenses

   List monthly household income from all sources, including wages, self-employment, disability, or

   Social Security. Record essential monthly expenses such as housing, utilities, food, insurance, transportation, childcare, and medical costs so you can propose a realistic payment plan.

3. Step 3: Contact the Massachusetts Department of Revenue

   Call (617) 887-6367 for payment agreement information when balances total $10,000 or less, and call (617) 887-6400 when balances total $10,001 or greater. Provide your Social Security number, the tax year(s) involved, and the total tax liabilities shown on your notice, and write down the representative’s name and the date of the call.

4. Step 4: Ask About Your Payment Plan Options

   Ask DOR which payment agreement options apply to your debt and your ability to pay. Confirm the monthly payment amount for each option and ask whether DOR requires additional financial information or forms, including Form M-433I.

5. Step 5: Request a Payment Plan Agreement in Writing

   Ask how you can submit and activate the payment agreement through MassTaxConnect or by phone, depending on eligibility. Keep the written confirmation or official record that lists the approved monthly payment amount and start date.

6. Step 6: Complete and Return the Payment Plan Form

   Fill out every required field on any DOR form, including your Social Security Number, address, phone number, email, income, and essential expenses. Submit Form M-433I and any requested documents by the stated deadline, and keep copies of everything you send for your debt records.

7. Step 7: Confirm Your Payment Plan Has Been Approved

   Wait for written confirmation that DOR approved your tax payment plan and set the due date and term. Contact DOR to check the status if you do not receive confirmation within three to four weeks.

8. Step 8: Make Your First Payment on Time

   Pay the first installment by the due date shown in the payment agreement letter. Use the accepted payment method for payment plans, which includes electronic fund transfer (EFT)

   from your bank account or payments by mail using checks or money orders, and do not use cash, debit, or credit cards for a payment agreement.

9. Step 9: Set Up Payment Reminders

   Schedule reminders at least one week before each due date so you can send the installment agreement payment on time. Call DOR before the due date if your income changes and you cannot make the scheduled payment.

• If you miss a payment, DOR may issue a Notice of Intent to Cancel your Payment
• A cancelled agreement can lead to collection action that includes levy and seizure.
• A tax lien becomes a public record and can affect borrowing, and tax liens generally no
• DOR may apply intercept or offset programs to intercepted funds during collection,
• Collect your bill or collection notice and any prior DOR letters that show the assessed
• Compile recent pay stubs, benefit statements, and proof of self-employment income if
• Prepare a monthly expense list that includes housing, utilities, food, insurance,
• Contact the Massachusetts Department of Revenue using the phone number that
• Request a written payment agreement record through MassTaxConnect or the method
• Individual Income Tax Problems (Unfiled Returns, Back Taxes, Audits)
• Sales Tax Issues (Past-Due Filings, State Notices, Compliance Help)
• Trust Fund & Payroll Tax Relief (941 Issues, Penalties, Enforcement Actions)
• Resolution Support (Payment Plans, Settlements, Penalty Abatement)
• Help Stopping Collections (Liens, Levies, Wage Garnishments)

10. Step 10: Continue Making Payments for the Life of the Plan

    Make every monthly tax payment until you pay the debt in full, or the agreement ends. Open and respond to new DOR notices, and contact DOR promptly if you need to request a modification.

    State-Specific Rules & Gotchas

    DOR can continue certain collection activities until it approves your payment agreement, and

    DOR can still file tax liens and apply intercepts or offsets after approval. Massachusetts also offers a temporary hardship option that can pause some automated bank levies and automated wage garnishments, and the debt continues to accrue penalties and interest during hardship.

    Agreement, and DOR may cancel the contract if you do not promptly cure the missed installment. longer appear on major consumer credit reports. including after plan approval.

    Common Mistakes to Avoid

    Mistake 1: Ignoring the Bill or Notice

    Many taxpayers delay action and allow penalties and interest to grow. Contact DOR soon after you receive a notice so you can discuss a payment plan before collection tools escalate.

    Mistake 2: Missing or Late Payments on Your Plan

    Each installment agreement payment is a legal obligation with due dates. Call DOR before the due date if you anticipate a late payment so you can discuss next steps and reduce default risk.

    Mistake 3: Not Returning Required Financial Forms

    DOR may request Form M-433I and supporting information to evaluate what you can pay.

    Complete the form accurately and submit it by the deadline to avoid denial or delay.

    Mistake 4: Continuing to Owe Additional Years

    A payment agreement covers only the tax years listed in the plan. Address any new bills for other tax years as separate tax liabilities and respond to new notices as they arrive.

    Mistake 5: Moving and Not Updating Your Address

    DOR sends due dates and warnings to the last address on file. Update your contact information with DOR in writing so you receive collection notices and payment plan updates.

    Mistake 6: Paying Informally Instead of Following the Plan

    Informal payments do not create an approved payment agreement. Request a formal tax payment plan and follow the agreed payment method so you receive credit under the plan terms.

    What Happens After the Payment Plan Is Approved

    DOR will send a written agreement that lists the monthly payment amount, due date, and duration of the payment plan. Stay current on all tax returns and make every scheduled payment to avoid cancellation, and understand that default can trigger collection action that includes liens, levies, wage garnishment, or license suspension.

    Next Steps

    Review your notice and confirm the tax year(s), the total balance, and the amount you can pay each month based on verified income and essential expenses. Gather your paperwork so you can answer DOR questions and complete Form M-433I with consistent figures. balance. applicable. transportation, childcare, and medical costs. matches your balance level.

    DOR provides, and keep it with your tax records.

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