Missouri Withholding Tax Payment Plan Options
Checklist
Understanding Payment Plans for Withholding Tax
A Missouri withholding tax payment plan allows businesses to pay overdue withholding taxes in scheduled installments rather than in a single lump sum. Employers deduct withholding tax from employee wages each pay period and remit these amounts to the Missouri Department of
Revenue.
Entering into an installment agreement does not eliminate the debt or stop the accrual of penalties and interest. Payment arrangements simply change how the debt is paid over time.
Why Missouri Offers Installment Agreements
The Missouri Department of Revenue uses installment agreements as a collection tool that benefits both the state and compliant businesses. Payment arrangements allow businesses to remain operational while satisfying their obligations gradually. The state prefers a reliable schedule over aggressive collection action because it increases the likelihood of full repayment and encourages businesses to file future returns on time.
Consequences of Ignoring Withholding Tax Debt
If withholding tax debt remains unpaid and no installment agreement is in place, the Missouri
Department of Revenue escalates enforcement actions. These actions may include
- Penalties and interest accumulate on the outstanding balance.
- Notices of tax due are issued to the business.
- A lien may be placed on business assets.
- Your account could be referred to a collection agency.
- Wage garnishment or bank account levies become possible enforcement tools.
Ignoring the debt does not eliminate it and typically makes the total amount owed significantly larger.
What Payment Plans Do Not Provide
Requesting or having an installment agreement in place does not mean the debt is forgiven, reduced, or eliminated. A payment arrangement is not the same as an offer in compromise or penalty abatement. Having an installment agreement does not prevent the state from taking additional enforcement action if payments are missed or if the agreement terms are violated.
Steps to Request a Withholding Tax Payment Plan
1. Gather Your Account Information: Locate all withholding tax notices received from the
Missouri Department of Revenue. Identify the specific tax types owed and note the total amount of tax, penalties, and interest currently owed. Determine the date range for which taxes are unpaid and collect your business tax identification number.
2. Calculate Your Payment Capacity: Review your current business cash flow and operating budget.
- Determine what amount your business can realistically sustain regularly.
- Calculate how long it would take to pay the full balance at that rate.
- Document this information for your installment agreement request.
3. Contact the Department: Call the Missouri Department of Revenue at (573) 751-7200 to discuss withholding tax accounts and installment agreements. Request to speak with a representative who handles business tax accounts. Confirm your business account and the current balance owed, and ask about available options for your specific situation.
4. Submit Your Request Online or by Phone: Missouri offers online payment plan requests through the MyTax Missouri portal. Businesses can request installment agreements online without a separate form or can call (573) 751-7200 for assistance. Alternatively, you may email paymentplan@dor.mo.gov. Online requests can be processed immediately for qualifying accounts, and the system provides instant approval for many cases.
- If you submit a request online, provide accurate business and contact information.
- State the total amount owed, the proposed payment amount, and the schedule.
- If arranging by phone, confirm with the representative that an agreement is in place and
request that written confirmation be sent to your business address.
5. Receive and Confirm Your Agreement: When the state responds, review the terms of the proposed or approved installment agreement carefully. Confirm the payment amount, all due dates, and the payee name and mailing address or payment instruction details. Note any conditions or terms specified by the state, such as requirements to file future returns on time, and keep this agreement in a safe location.
Making Payments and Maintaining Compliance
Begin Payments
Prepare your first payment according to the terms and due date specified in your agreement.
Send the payment to the correct address or use the specified method, include your business tax identification number, and keep a record of the payment and the date sent.
Continue Payments on Schedule
Mark all future due dates on your business calendar and prepare each payment in advance to ensure timely submission. Keep detailed records of every payment made, including dates, amounts, and confirmation numbers. Continue filing all required withholding tax returns on their regular due dates and continue making current tax deposits as they become due.
Monitor Your Account
Periodically contact the revenue department to verify your account balance and remaining payments. Ask how much principal, interest, and penalties have been paid to date. Confirm your agreement is still active and in good standing, and review statements or notices from the state to ensure your payments are being credited correctly.
Complete Payment and Obtain Confirmation
When you make the final payment, request written confirmation from the revenue department that the balance is paid in full, verify that no additional amounts are due, and keep confirmation of final payment with your permanent tax records.
What Happens After Approval
Once the Missouri Department of Revenue approves an installment agreement, the state stops escalating collection action as long as payments are made on schedule. Missing a payment can result in the agreement being terminated and collection actions resuming, including liens, garnishments, or referral to collection agencies. If you cannot make a payment on time, contact the Department immediately at (573) 751-7200.
Common Mistakes to Avoid
Missing payment deadlines is the most common reason agreements are terminated. Set reminders for each due date and submit payments several days early.
An installment agreement does not eliminate the requirement to file withholding tax returns on time and make current deposits. Failure to file or pay current taxes while on an installment agreement results in agreement termination.
The revenue department sends notices throughout the period, and ignoring these notices or failing to respond to requests for information can trigger collection action.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We help with
- State enforcement actions and notices
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- Payment plans and compliance solutions
- Representation before state tax agencies
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