Understanding the Kansas Tax Payment Plan

If you are a Kansas resident facing a tax bill you can’t pay in full, you are not alone. The Kansas Department of Revenue offers payment plan options that allow individuals and businesses to pay their tax debt in manageable monthly installments. These plans aim to help taxpayers avoid harsher collection actions while keeping their finances stable.

This guide will show you everything you need to know about setting up a tax payment plan in Kansas. It will show you how to apply online or by mail, what forms to use, and how to calculate monthly payments. You will also learn what happens after you apply, how interest and penalties work, and what to do if you can't pay.

This guide clearly shows how to set up an installment agreement for income tax, business tax, or both. Knowing your options and following the proper steps, you can manage your tax account responsibly and avoid paying extra penalties and fees.

Understanding Kansas Tax Payment Plans

The Kansas Department of Revenue offers structured tax payment plans to help taxpayers who cannot simultaneously pay their full tax bill. These plans allow individuals and businesses to spread their tax debt over time with consistent monthly payments. A payment plan can prevent penalties, avoid legal action, and regain financial control while complying with state tax laws.

These plans are formally known as installment agreements. Once approved, the taxpayer agrees to pay a fixed monthly payment on a scheduled due date—usually the 1st or 15th of the month. Payment options include check, credit card, ACH, and direct debit. Administration fees and interest may apply depending on the plan's type and length.

Kansas payment plans are available for various tax accounts, including individual income tax, business tax, and combined tax obligations. You may qualify for a short-term plan (up to 90 days) or a long-term plan (up to 12 months for individuals and 6 months for businesses), depending on your situation and whether you meet certain conditions. To request a payment plan, you must be current with all required tax returns and demonstrate that you cannot pay the full balance immediately.

Who Qualifies for a Kansas Tax Payment Plan?

In Kansas, not everyone automatically qualifies for a tax payment plan. The Kansas Department of Revenue (KDOR) reviews each request based on the taxpayer’s current standing and financial situation. Meeting the eligibility criteria is essential before you apply.

To qualify, you must meet the following conditions:

• All required tax returns must be filed
  You cannot agree if there are unfiled returns. The state must have a complete view of your tax account before approving any payment plan.
  
  
• You must be unable to pay the tax bill in full.
  Payment plans are designed for those facing financial hardship. KDOR may request additional information or documentation to verify this.
  
  
• You must not have any other unresolved tax debts.
  If you owe on multiple accounts, they may need to be included in a combined tax plan or resolved separately before approval.
  
  
• You must demonstrate a willingness to pay
  Taxpayers must agree to a realistic monthly payment amount and fully comply with the terms of the installment agreement.
  
  
• All current and future tax payments must be made on time.
  You are expected to keep up with future obligations even after the plan starts. Falling behind can void the agreement.
  
  

Failure to meet any of these criteria could result in the denial of your request or the termination of your existing payment plan.

Basic Requirements for Eligibility:

• Up to date on all tax returns that are due
  Before you can ask for a payment plan, you must have filed all your past and present returns. The state won't approve your application if you don't include all your returns.
  
  
• Can't pay the full amount right away
  Please demonstrate that paying the full tax debt at this time would negatively impact your financial situation.
  
  
• Willingness to follow through in the future
  From now on, you must agree to pay all your taxes on time and file your returns on time.
  
  
• No unresolved tax debts outside the agreement
  All tax accounts must be included in the plan or resolved before approval.
  
  

The Department may deny your application if you have an existing payment plan in default, a poor compliance history, or fail to meet the above criteria. In some cases, additional documentation, such as proof of income or a hardship explanation, may be required. 

Types of Kansas Tax Payment Plans

Kansas offers multiple payment plan options depending on the type of taxpayer and the duration needed to pay off the tax debt. Understanding the differences helps you make the best choice for your financial situation.

1. Short-Term Payment Plans (Up to 90 Days)

Short-term plans are ideal if you can pay your balance within three months. They are simpler and have fewer administrative costs.

• Duration: Up to 90 days
  
  
• Administration fee: None
  
  
• Interest and penalties: Continue to accrue until the balance is paid
  
  
• Eligibility: Must pay the full tax bill within the plan term
  
  
• Payment methods: ACH, check, credit card, or direct debit
  
  

2. Long-Term Payment Plans (Over 90 Days)

Long-term plans allow for extended repayment, typically when the total tax debt is too high for a short-term strategy.

• Duration:
  
  
  
  • Up to 12 months for individuals
    
    
  • Up to 6 months for businesses
    
    
• Administration fee: $25 charged at plan approval
  
  
• Tax warrants: May be filed for extended payment plans
  
  
• Interest and penalties: Continue monthly throughout the agreement
  
  
• Auto-payment encouraged: You may be required to set up a direct debit payment plan to ensure timely payments.
  
  

3. Individual vs. Business Plans

Kansas separates individual and business payment plans to address different types of tax accounts:

• Individual Plans use Form CM-15
  These plans specifically cater to taxpayers with outstanding state income taxes.
  
  
• Business Plans use Form CM-16
  Businesses with outstanding sales, withholding, or other commercial tax debts are the target audience for these plans.
  
  

If you already have an existing installment agreement and need to modify or extend it, you’ll need to contact KDOR directly. A new deal may require updated financial documentation or proof of continued hardship.

How to Apply for a Kansas Tax Payment Plan

Depending on your preference, you can request a tax payment plan for Kansas online or by mail. While the Kansas Department of Revenue recommends online applications for expedited processing, it accepts both methods.

Option 1: Apply Online (Recommended)

To submit your application online, follow these steps:

1. Visit the Kansas Internet Installment Agreement Portal
   Go to https://debtpay.kdor.ks.gov/iia.
   
   
2. Enter your tax account information.
   You’ll need your billing notice number and ZIP code.
   
   
3. Select your payment amount and due date.
   Choose the first or the 15th of the month as your recurring payment date.
   
   
4. Kindly provide your bank account details.
   If you set up a direct debit, please ensure your routing and account numbers are accurate.
   
   
5. Submit the application and first payment (if required)
   You’ll receive confirmation within 14 days after KDOR reviews your request.
   
   

Option 2: Apply by Mail or Fax

If you prefer to submit a paper form, use the correct application:

• Form CM-15: For individual taxpayers
  
  
• Form CM-16: For businesses
  
  

Steps for paper application:

• Download the appropriate form from ksrevenue.gov.
  
  
• Complete all required fields, including contact details, tax period, and payment amount.
  
  
• Include banking information for auto-debit if applicable.
  
  
• Sign the form (both spouses must sign if filing jointly)
  
  
• Submit the form by fax, mail, or email.
  
  • Fax: 785-291-3616
    
    
  • Email: kdor_kstaxpayplanrequest@ks.gov
    
    
  • Mail:
    Kansas Department of Revenue
    Revenue Recovery,
    PO Box 12005
    Topeka, KS 66601-2005
    
    

Before submitting, double-check that your tax returns are current and that the minimum monthly payment you are offering is realistic based on your income and expenses. Incomplete or inaccurate forms may delay the process.

What Happens After You Apply

Once you request a payment plan—whether online or by mail—the Kansas Department of Revenue will review your application to determine whether it meets all conditions; this process typically takes up to 14 days.

What the Review Includes:

• Compliance check
  KDOR confirms that all required tax returns are filed and no unrelated debts are outstanding.
  
  
• Financial analysis
  The department may assess your ability to pay based on income and expenses for long-term plans or lower monthly payment amounts.
  
  
• Account verification
  Your tax account and balance will be validated to ensure accuracy before the agreement begins.
  
  

If your request is approved, KDOR will send a confirmation letter outlining your monthly payment amount, selected due date, and the length of your installment agreement. If your application is denied, the letter will explain the reason and may suggest alternate steps.

Remember that interest and penalties continue to accrue on unpaid balances even after approval until the full tax debt is resolved. Refunds due during the term of your agreement will be automatically applied to your outstanding balance.

Managing Payments: Once you are approved

After your installment agreement is approved, you must stay on track with your monthly payment. The Kansas Department of Revenue offers multiple payment methods to make the process convenient.

Accepted Payment Methods:

• ACH/Electronic Check:
  Pay directly from your bank account through the KDOR tax payment portal.
  
  
• Check or Money Order:
  Make the check or money order payable to the Kansas Department of Revenue. Include your Social Security number. The check bears the EIN and the tax account type.
  
  
• Credit Card:
  The credit card is accessible via the KDOR portal. Note that a third-party convenience fee applies.
  
  
• Direct Debit:
  Direct Debit is the best option for extended plans. You can authorize automatic monthly payments from your bank account to avoid missing your due date.
  
  
• Wage Assignment (for individuals):
  An optional method that allows payments to be deducted directly from your paycheck. Contact KDOR for setup instructions.
  
  

Payment Plan Terms:

• Monthly payment amount:
  This amount is based on your plan and KDOR’s approval. It must be paid by the first or 15th of each month.
  
  
• Tracking payments:
  It’s your responsibility to monitor your account balance, due date, and any accrued penalties or interest.
  
  

Automated or calendar-based reminders can ensure you stay current. Missing even one payment could put your agreement at risk.

Staying Compliant With Your Plan

After your installment agreement begins, you must meet specific responsibilities to avoid default and potential collection actions.

Requirements to Stay Compliant:

• Make every monthly payment on time.
  Payments are due on the scheduled date (1st or 15th) each month. A missed payment may trigger a default status.
  
  
• Please ensure that all future tax returns are filed on time.
  Even during your payment plan term, you are required to stay current with all filing obligations.
  
  
• Pay all future tax liabilities when due.
  If you accrue new tax debt during the life of your agreement, the entire plan may be canceled.
  
  
• Keep your contact and banking information updated.
  Please promptly inform KDOR if there are any changes to your bank account or address.
  
  
• Maintain the original terms unless formally modified.
  Do not adjust the payment amount or due date without contacting KDOR first.
  
  

If your financial situation changes significantly and you cannot meet the minimum monthly payment, contact KDOR to request a review. Sometimes, they may restructure the payment plan, but you may be required to provide additional information, such as income statements or expense records.

Defaulting on your agreement can result in immediate enforcement actions, including tax liens, wage garnishments, or asset seizures. Maintaining compliance is the most cost-effective and stress-free way to resolve your tax debt.

Consequences of Defaulting on Your Payment Plan

If you miss a monthly payment, fail to file a required return, or accrue new tax debt while on your Kansas tax payment plan, your agreement may default. This triggers immediate enforcement actions by the Kansas Department of Revenue.

Triggers that happen a lot by default:

• Did not pay a monthly bill without permission first
  
  
• Do not file your current or future tax returns.
  
  
• New unpaid tax debts that aren't part of the current installment agreement
  
  
• Not enough money or canceled direct debit permission

Consequences of Default:

• Entire balance due: If a taxpayer defaults on their agreement, the full remaining tax debt becomes immediately payable. This eliminates any installment arrangements and demands full payment at once.
  
  
• Asset seizure: The Kansas Department of Revenue (KDOR) may take enforcement actions such as garnishing wages, levying bank accounts, or seizing personal or business assets to recover the outstanding debt.
  
  
• Tax liens: A state tax lien may be filed against the taxpayer’s property, which can harm credit scores and interfere with the ability to sell, refinance, or borrow against property.
  
  
• License suspension: Business or professional licenses may be suspended or revoked in default response, which can disrupt business operations and reduce income opportunities.
  
  
• Credit reporting: A default may be reported to credit bureaus, potentially lowering the taxpayer’s credit score and affecting access to loans, housing, or other credit-based services.
  
  
• Collection costs: Additional costs such as legal fees, administrative charges, and other collection-related expenses may be added to the debt, increasing the total amount owed.

You may be able to reinstate or renegotiate your payment plan, but you must act quickly by contacting KDOR at 785-368-8222.

Additional Help and Free Tax Resources

For many taxpayers, handling the application process for a payment plan is manageable. However, certain situations may require expert support or free community assistance.

When to Seek Professional Help:

• You owe taxes for multiple years or across different tax types
  
  
• Your previous payment plan defaulted
  
  
• KDOR has initiated collection actions such as garnishments
  
  
• You need help documenting financial hardship or income limits

Free Tax Preparation Resources:

• VITA (Volunteer Income Tax Assistance):
  Free help for low- to moderate-income taxpayers
  
  
• AARP Tax-Aide:
  Free filing help for those aged 50+, regardless of income
  
  
• TCE (Tax Counseling for the Elderly):
  Tax guidance tailored for seniors
  
  

KDOR Contact Information:

• Phone: 785-368-8222
  
  
• Email: kdor_tac@ks.gov
  
  
• Mail: Kansas Department of Revenue, Revenue Recovery, PO Box 12005, Topeka, KS 66601-2005
  
  
• Online Appointments: telegov.egov.com/kdor-tac
  
  

Final Checklist Before You Apply

Please review the list below to ensure you are well-prepared before requesting a tax payment plan for Kansas. Submitting complete and accurate information helps avoid delays or denial.

Before You Apply

• File all past-due and current tax returns.
  
  
• Calculate your total tax debt, including penalties and interest.
  
  
• Decide whether to apply online or by mail.
  
  
• Determine a realistic monthly payment amount.
• Gather key documents: billing notices, SSN/EIN, and bank account info.
• Choose your preferred payment method and due date (1st or 15th)

During the Application

• Complete Form CM-15 or CM-16 if applying by mail
  
  
• Enter accurate payment and contact information.
  
  
• Please include your initial payment if it is required.
  
  
• Keep a copy of all submitted documents.
  
  

After Approval

• Set calendar reminders or auto-debit setup for the payment date(s).
  
  
• Please ensure that all future tax returns are filed on time.
  
  
• Contact KDOR immediately if you can’t make a scheduled payment

Frequently Asked Questions

What happens if I miss a payment on my tax payment plan for Kansas?

If you miss a monthly payment, your installment agreement for the payment plan may default. This can trigger collection actions such as wage garnishment or a tax lien. The Kansas Department of Revenue may demand immediate payment of your remaining tax balance. To avoid these penalties and interest, contact KDOR as soon as possible to request a payment plan modification or adjustment to your due date or payment amount.

Can I apply for a payment plan online?

Yes, you can apply online through the Kansas Internet Installment Agreement portal. This is the fastest way to request a payment plan and set up your monthly payment. If you want to enroll in a direct debit payment plan, you’ll need to enter your tax account details, select your preferred due date, and provide your bank account information. Once you complete and submit the online form, KDOR reviews your request within 14 days.

How is my monthly payment amount calculated?

Your monthly payment amount depends on your total tax debt, the plan duration, and what you can reasonably afford. If you cannot pay the full tax bill, KDOR may review your income and expenses to determine a suitable installment agreement. In some cases, a minimum monthly payment may be required. Interest and accrued penalties will continue throughout the contract until the full balance is paid.

Can I modify an existing payment plan?

If you are experiencing financial hardship or your situation changes, you can request changes to your existing installment agreement. Contact the Kansas Department of Revenue by phone or mail to submit updated financial information, request a new payment amount, or request a new due date. Modifications may require additional information, such as income verification or a revised monthly budget. Be sure to act quickly to avoid defaulting on your current agreement.

Will penalties and interest continue during my payment plan?

Yes, interest and penalties continue to accrue on the unpaid balance during your payment plan. Interest is charged monthly, and penalties may be added if future tax returns are filed late or not paid on time. Even if you make monthly payments, paying off the tax debt as quickly as possible is essential to reduce the total cost. Any tax refunds owed may also be applied automatically to your tax account.

Can I include multiple tax types in one payment plan?

Kansas allows you to combine individual income, business, and other tax types into a single payment plan when applicable. This is called a combined tax agreement. To request a payment plan that includes multiple accounts, ensure that all related tax returns are filed and the total balance is listed on your application. This approach simplifies monthly payments and avoids the need to manage more than one installment agreement.

Do I need to be current on my tax returns before I apply?

Yes, all required tax returns must be filed before you request a payment plan. The Kansas Department of Revenue won't approve an installment agreement unless your tax account is current. You must fill out and send in any unfiled returns before your application can be reviewed. The department uses these forms to determine how much you owe and whether you meet specific requirements.

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