42-2057

42-2057. Agreement for installment payments of
tax

A. The department may enter into an agreement with a taxpayer to allow the taxpayer
to satisfy a liability for any tax by means of installment payments. The department may
require a taxpayer who requests an installment payment agreement to complete a financial
report in such form and manner as the department may prescribe.

B. The department, without notice, may alter, modify or terminate an installment
payment agreement if the taxpayer:

1. Fails to pay an installment at the time the installment payment is due under the
agreement.

2. Fails to pay any other tax liability at the time the liability is due.

3. Fails to file any tax report or return at the time the report or return is due.

4. Fails to furnish any information requested by the department within thirty days
after the request.

5. Fails to notify the department of a material improvement in the taxpayer's
financial condition above the income previously reported in the most recent income
statement within thirty days after the material improvement.

6. Provides inaccurate, false or incomplete information to the department.

C. Notwithstanding any installment payment agreement, the department may offset any
tax refunds against the liabilities provided for in the installment payment agreement,
may file and fully enforce any tax liens and may engage in collection activities
involving the sale of assets.

D. The department, without notice, may terminate an installment payment agreement
if the department believes that the collection of tax to which the payment agreement
pertains is in jeopardy.

E. If the department determines that the financial condition of a taxpayer has
improved, the department may alter, modify or terminate the agreement by providing notice
to the taxpayer at least thirty days before the effective date of the action. The notice
shall include the reasons why the department believes the alteration, modification or
termination is appropriate.

F. An installment payment agreement shall remain in effect for the term of the
agreement except as otherwise provided in this section.

G. A taxpayer who is aggrieved by a decision of the department to refuse to enter
into an installment payment agreement or to alter, modify or terminate an agreement
entered into pursuant to this section may petition the office of taxpayer assistance to
review that determination. The office of taxpayer assistance may stay such alteration,
modification or termination pending its review and may modify or nullify the
determination.

H. The department and the taxpayer may modify any installment payment agreement at
any time by entering into a new or modified agreement.

I. The department may adopt rules to implement this section.