State tax debt in Arizona is collected by Arizona Department of Revenue, not the IRS. Ask for a monthly plan on AZTaxes.gov. You cannot add new tax debt while on the plan. A lien may be filed based on how much you owe.
Key facts for Arizona
- State income tax
- Flat 2.5% for tax year 2023 and later. Source
- Payment plan
- Ask for a monthly plan on AZTaxes.gov. You cannot add new tax debt while on the plan. A lien may be filed based on how much you owe. Source
- Offer program
- Yes. Arizona takes offers in compromise if you owe more than you can pay. Use Form 11005. The time limit to collect is paused while the offer is open. Source
- Collection tools
- If you break a plan, Arizona may file a lien or levy your wages and bank accounts. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Arizona Department of Revenue collects Arizona taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Arizona
Who collects state taxes in Arizona?
The Arizona Department of Revenue. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Arizona taxes?
Ask for a monthly plan on AZTaxes.gov. You cannot add new tax debt while on the plan. A lien may be filed based on how much you owe.
Does Arizona take offers in compromise?
Yes. Arizona takes offers in compromise if you owe more than you can pay. Use Form 11005. The time limit to collect is paused while the offer is open.
Can TaxTruce help with Arizona tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Arizona. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
Facts on this page come from Arizona Department of Revenue and are linked. Rules change. Check with Arizona Department of Revenue or a licensed tax pro before you act. We are not affiliated with Arizona Department of Revenue.