Guide on How to File an Arkansas State Tax Return for Tax Year 2013

Filing and paying state taxes can feel overwhelming, especially when the amount owed is more than you can pay at once. For Arkansas taxpayers who need extra time, the Department of Finance and Administration (DFA) offers payment plans that allow you to spread your balance into smaller monthly installments. These plans provide a structured process that helps you stay compliant while avoiding aggressive collection actions.

A state tax payment plan can be beneficial if your tax return shows that you owe more than expected or are dealing with other financial obligations that make a lump-sum payment difficult. By enrolling in a plan, you remain responsible for the full balance but gain control over how and when you pay. This makes it easier to manage your budget without risking additional penalties or interest from late payments.

This guide explains the Arkansas payment plan in clear, beginner-friendly steps so you can apply with confidence. You will find instructions on eligibility, the information required, and the options available for filing online or by mail. We also review common mistakes to avoid, explore ways to manage your plan once approved, and answer frequently asked questions. Whether you are an individual or a small business, taking the time to understand the process will ensure that you receive the full benefit of the program and stay on track with your state tax obligations.

What's an Arkansas State Tax Payment Plan?

An Arkansas state tax payment plan is an installment agreement offered by the Department of Finance and Administration (DFA) that allows taxpayers to pay their balance over time instead of all at once. This option is designed to help individuals and businesses who cannot immediately pay the full amount they owe on their state tax return. By setting up a plan, you agree to make regular monthly payments until your balance is satisfied.

The main benefit of a payment plan is that it prevents collection actions such as wage garnishments, liens, or bank levies as long as you remain in good standing. It also provides a structured way to meet your responsibilities without the stress of a single large payment. For many taxpayers, having the option to spread payments out offers peace of mind and a practical path toward resolving state tax debt.

Various taxpayers use payment plans. Individuals often apply when their tax liability is larger than expected, such as when too little was withheld during the year or when self-employment income results in higher taxes due. Small businesses may also rely on installment agreements to manage state tax obligations while keeping cash flow available for operations. In both cases, the plan provides stability by giving taxpayers more control over their finances.

Eligibility Criteria

Before applying for an Arkansas state tax payment plan, it is essential to understand who qualifies. The Department of Finance and Administration (DFA) sets specific requirements to ensure that taxpayers are compliant and capable of meeting the terms of the agreement. Meeting these criteria improves your chances of approval and reduces the need to provide additional information after you apply.

Basic eligibility requirements include:

• Filed tax returns: You must complete and file Arkansas tax returns for the year. Unfiled returns make you ineligible until they are submitted, and all required forms are available through the official Arkansas tax forms and instructions.
• Minimum balance owed: Payment plans are generally intended for taxpayers who have a balance large enough that paying in full is not practical. Small balances may require payment in one installment instead of spreading them out.
• Residency or income from Arkansas: Both residents and nonresidents who earn Arkansas income may apply, but nonresidents must use the appropriate forms when setting up their agreement.
• Proof of ability to pay: The DFA may request bank account details, income verification, or other documentation to confirm that you can meet monthly payments.

Situations where you may not qualify include:

• If you have unfiled federal or state returns.
• If there is evidence of fraud or intentional tax evasion.
• If you have defaulted on previous installment agreements without reasonable cause.

For most taxpayers, eligibility depends on being current with all required filings and demonstrating a willingness to comply with payment instructions. It is also worth noting that while a payment plan helps you control how your balance is paid, you remain responsible for interest and penalties that continue to accrue.

Before applying, review your filing status, confirm that all returns are submitted, and gather the documents needed to prove your eligibility. Doing this work in advance will improve the process and help you receive approval without delays.

How to Apply for an Arkansas State Tax Payment Plan

Applying for a state tax payment plan in Arkansas is a straightforward process, but it does require preparation and attention to detail. Following the correct steps will reduce delays and help you receive approval from the Department of Finance and Administration (DFA). Below is a step-by-step guide to completing your application.

Step 1: Gather Required Information

Before you begin, collect all documents and details that the DFA will request during the application process. Having everything ready ensures that your request is complete and avoids unnecessary back-and-forth.

• Tax year(s) owed: Know which tax periods you must include in your plan. If multiple years are involved, list them in order.
• Balance due: Review your most recent notice from the DFA to confirm the total amount. Double-check your math errors to avoid reporting incorrect figures.
• Personal information: Be prepared to provide your full name, Social Security Number, mailing address, and phone number. Businesses should provide their tax identification number.
• Bank account/payment method: To set up automatic payments, have your routing and account numbers ready. This option often provides more control over your payment status.

Step 2: Apply Online or by Mail

The DFA gives taxpayers two main ways to submit a request.

Option A: Apply Online Through ATAP

• Go to the Arkansas Taxpayer Access Point (ATAP) website.
• Log in or create an account.
• Choose the installment agreement option under individual or business services.
• Complete the online application form, providing all required details.
• Review the information carefully before submission to avoid mistakes.
• Receive confirmation that your application was received.

Option B: Apply by Mail

• Download the appropriate installment agreement request form from the DFA website.
• Complete all sections of the form, providing accurate text entries for your personal and tax information.
• Attach any supporting documentation requested.
• Mail the form to the address listed in the instructions.
• Note: Applying by mail generally takes longer to process, but it remains an option for those who cannot or choose not to apply online.

Step 3: Choose Payment Options

When setting up your plan, you must select the method and schedule of your payments.

• Monthly installment structure: The DFA will work with you to determine an affordable monthly amount. The longer the plan, the smaller each payment will be, but more interest may accrue.
• Automatic bank draft vs. manual payments:
  
  • An automatic bank draft is recommended to ensure payments are made on time without extra effort.
  • Manual payments allow you to send checks or pay online each month, but you must pay close attention to due dates.
• Fees: While the DFA does not typically charge a setup fee, interest and penalties continue until the balance is paid in full. Be aware of these ongoing costs when choosing your payment option.

Step 4: Submit and Confirm

Once your application is complete, it must be submitted to the DFA for review.

• Applying online: You will receive an immediate acknowledgment through ATAP confirming that your request was received. Keep a copy of this page for your records.
• Applying by mail: You will receive a letter once the DFA enters your request into its system. Be sure to keep copies of all forms and correspondence.
• Review confirmation details: Your confirmation should include the plan terms, payment due dates, and instructions for making your first payment.
• Processing time: Most taxpayers receive a response within two to three weeks. If the DFA requires additional information, you will be contacted directly.
• Final Notes on Applying: Applying for an Arkansas state tax payment plan is essential in resolving your state tax balance. The process requires careful attention to detail, from gathering documents to choosing the right payment option. By completing each step correctly, you will improve your chances of approval and avoid delays.
• Remember: You must file your state tax return before applying, and interest will continue until the balance is paid in full. Take the time to review your application before submission to make sure it is accurate and complete. Doing so will help you receive approval quickly and make payments without complications.

What Happens After You Apply

Submitting your Arkansas state tax payment plan application is only the first step. Once the Department of Finance and Administration (DFA) receives your request, it reviews the details to confirm eligibility and ensure all required information is provided. If your tax return is missing or incomplete, you may be asked to file before processing your application. Providing accurate documentation up front reduces delays.

• Approval Process: The DFA typically reviews applications within two to three weeks. If you applied online through the Arkansas Taxpayer Access Point (ATAP), you can check your status by logging into your account. Taxpayers who applied by mail will receive a letter once the application has been reviewed. This correspondence will outline whether the plan is approved, the monthly payment amount, and the due date of the first installment. If the DFA needs additional information, they will contact you directly.
  
  
• Approval: Once your plan is approved, you make the first payment on time. Payments can be made through automatic bank draft, online services, or by check. Keep a copy of your confirmation page or letter for your records, proving the plan is active. It is essential to remain aware of your obligations since late or missed payments may result in cancellation of the agreement.
  
  
• If Your Application Is Denied: Sometimes, an application may be denied. This usually happens if returns have not been filed, if there is evidence of prior defaults, or if the DFA determines that the requested plan is not manageable. Denial letters explain the reason and provide instructions on resolving the issue or reapplying.

By understanding what happens after you apply, you can take the proper steps to stay compliant, maintain control over your payment plan, and avoid interruptions that could affect your account standing.

Managing Your Payment Plan

Once your Arkansas state tax payment plan is approved, staying on track becomes the most critical part of the process. While the Department of Finance and Administration (DFA) provides flexibility through monthly installments, you remain responsible for making timely payments until the balance is resolved.

• Making Changes to Your Plan: Life circumstances and your ability to pay can change. If you need to adjust your plan, contact the DFA immediately. In some cases, they may allow you to:
  
  • Increase or decrease payment amounts: Adjustments may be approved if your financial situation changes, but reductions often require additional information, such as proof of income.
  • Update personal details: If your mailing address, phone number, or bank account changes, you should update your account immediately to avoid payment interruptions.
  • Extend the plan length: In some instances, you may be able to extend the plan's term to reduce monthly payments.

• Paying Off Early: You always have the option to pay your balance in full before the plan ends. Making an early payment reduces the interest and penalties that continue to accrue over time. Many taxpayers pay extra when possible to shorten the plan and minimize costs.
  
  
• Avoiding Cancellation: The most common reason a plan is canceled is missed or late payments. To prevent this:

• Opt for automatic bank drafts if available, which provide better control over your payment status.
• Review each monthly statement to ensure payments are applied correctly.
• Remember due dates and keep copies of all receipts or confirmation pages.

By actively managing your payment plan, you ensure compliance with state tax requirements and maintain the benefits of installment payments. Good management also helps you find ways to save money over time while avoiding unnecessary penalties or interruptions.

Common Mistakes to Avoid

Applying for and maintaining an Arkansas state tax payment plan requires careful attention. Even minor errors can delay approval or cause problems once the plan is active. By being aware of the most common mistakes, taxpayers can prevent setbacks and stay on track.

Frequent mistakes include:

• Submitting incomplete applications: Leaving out required details such as Social Security Numbers, account information, or the correct tax year can slow down the process. Always review your forms before submission.
• Missing deadlines or the first payment: Plans are often canceled if the initial installment is late. To avoid this, set reminders or opt for automatic payments through the Arkansas Taxpayer Access Point (ATAP).
• Assuming penalties and interest stop: A payment plan does not eliminate additional charges. Interest continues to accrue until the balance is paid in full. Understanding this detail helps you plan realistically.
• Ignoring communication from the DFA: If the Department of Finance and Administration sends letters or requests for additional information, failure to respond may result in cancellation. Keep your mailing address and email up-to-date to ensure you receive notices.
• Mathematical errors on the return: Simple math errors when calculating what you owe can create discrepancies. Confirm all figures before you apply so that your balance matches what the DFA has on record.

By avoiding these mistakes, you improve your chances of approval and keep your plan in good standing. Careful preparation, timely payments, and clear communication with the DFA are the best ways to stay compliant and in control of your state tax responsibilities.

When to Contact the DFA or Seek Help

Managing a state tax payment plan can usually be done on your own, but there are instances when reaching out for help is the most responsible option. The Arkansas Department of Finance and Administration (DFA) provides services to guide taxpayers when issues arise, and professional assistance may also be valuable in some instances.

When to contact the DFA directly:

• Application questions: The DFA can provide clarification if you are unsure about the instructions, missing documents or need to confirm whether your return has been processed.
• Payment problems: Contact the department immediately if a scheduled payment did not go through or you receive a notice that your plan is at risk of cancellation.
• Account updates: Notify the DFA if you move, change banks, or need to update other personal information that could affect your account.

When to seek professional tax help:

• If you have complex tax debt involving multiple years or state and federal balances.
• If you receive repeated notices from the DFA and are unsure how to respond.
• If you need help exploring other options, such as offers in compromise or penalty relief.

Knowing when to seek help gives you more control over the process and ensures you find the best solution. Timely communication also helps you avoid delays, protect your status, and comply with Arkansas tax laws.

Frequently Asked Questions

How long does it take to get approval for an Arkansas payment plan?

Most taxpayers receive a decision within two to three weeks after they file their request. If you applied online through ATAP, you can check the status of your return at any time. The Department of Finance and Administration may need additional information if your file is incomplete or your federal tax records show discrepancies.

What happens if I miss a payment under my plan?

If you miss a payment, the DFA may cancel your agreement. This means you could be required to file immediately for collection actions. Always review notices you receive and file a response on time. Federal rules do not control Arkansas directly, but failure to manage your state return properly can also affect how you file your federal obligations later.

Can businesses or individuals apply for a payment plan?

Both individuals and businesses may file for an Arkansas installment plan if they owe a balance on a tax return. Small companies often benefit from filing online to ensure faster confirmation. Federal business filings do not replace the state requirement, so you must file separately with Arkansas even if your federal return has already been submitted.

Is there a minimum balance required to set up a plan?

Yes, the DFA usually requires that taxpayers file with a balance large enough to justify a payment plan. You may be asked to pay in full if the return shows only a small amount due. When you file, check your state and federal records to confirm how much you owe, then file the correct request for an installment plan.

Does interest still apply while I’m on a payment plan?

Yes, even after you file for an installment agreement, interest and penalties continue until your return is paid in full. Federal rules follow a similar approach: filing for a plan does not eliminate additional charges. Always review your balance after you file, and keep copies of each return so you can track how much remains due.

Can I pay off my balance early without penalty?

Yes, you may file extra payments at any time, which reduces the total interest that accrues on your return. Unlike some private lenders, the DFA does not penalize taxpayers who file early payments. Like IRS installment agreements, Arkansas payment plans also allow early payoff, so you can file more than the scheduled amount whenever possible to finish faster.

What if I move out of state while on a payment plan?

If you move, you must still file your Arkansas payments on time. Constantly update your contact information so you continue to receive notices about your return. Even if your federal address is updated with the IRS, you must file the change separately with Arkansas. Failing to file updated details could cause delays or missed communication about your plan.