You’ve likely landed here because dealing with California’s state tax debt has become a challenge. Maybe the letters from the Franchise Tax Board are piling up, or perhaps the stress of looming penalties is keeping you up at night.
You’re not just looking for another generic solution—you want something that speaks directly to your situation. Nonetheless, you want a way to regain control without feeling thrown off balance.
This guide is designed to cut through the clutter and provide you the insights you need to navigate the 3567 Installment Agreement—your potential lifeline in getting back on track with the state.
Let’s dive into how this can be your turning point.
What is the 3567 Installment Agreement?
The 3567 Installment Agreement is a payment plan that allows taxpayers who are unable to pay their tax liability, including back taxes, in full to spread their payments over time.
While paying your tax bill in full immediately is always encouraged, this option provides a way to manage your tax debt in smaller amounts.
Eligibility Criteria
To qualify for an installment agreement, you must meet certain criteria:
- Tax Liability Limit: Your total tax debt must not exceed $25,000.
- Payment Period: The agreement period cannot extend beyond 60 months (5 years).
- Tax Return Compliance: All required personal income tax returns must be filed.
- Existing Agreements: You should not have any other ongoing installment agreements.
If you meet these conditions, you may be eligible to request an installment agreement.
Peter Salinger can assist you in completing this process, ensuring everything is handled smoothly and accurately. He can also help you with how to request installment agreement IRS.
Key Conditions for Taxpayers
Once approved for an IRS installment agreement, several key conditions must be met to ensure your agreement remains in good standing:
- Timely Payments: You are required to make your monthly payments on time until your tax debt is fully settled. Missing a payment could jeopardize your agreement and lead to further penalties.
- Sufficient Funds: Ensure your bank account has enough funds to cover each monthly payment. Insufficient funds may result in dishonored payment penalties and could lead to the termination of your installment agreement. Regularly monitoring your account balance can help prevent these issues.
- Filing Requirements: You must continue to file all required personal income tax returns promptly. Staying current with your tax filings is integral to maintaining your installment agreement.
- Future Tax Payments: In addition to the payments under your agreement, you are expected to pay any future tax liabilities on time. Falling behind on future tax obligations can disrupt your current agreement.
- Agreement Fee: A one-time fee for installment agreement with IRS of $34 will be added to your total tax liability as part of setting up the installment agreement. This fee is mandatory and will be included in your overall payment plan. Before moving forward, have a complete look and check the updated fee.
- State Tax Liens: The state may file a tax lien against your property to secure its interest until your tax debt is fully paid. This lien can impact your credit score, so it’s important to stay on top of your payments to avoid any negative consequences.
It’s critical to adhere to these conditions throughout your installment agreement. If your debt exceeds $25,000 or your payment period extends beyond 60 months, your agreement may be subject to periodic reviews to ensure compliance.
Required Information for Completing the FTB 3567 Form
When filling out the FTB 3567 form, you’ll need to provide several key details to ensure your request is processed correctly. Here’s a clear and simple breakdown of what you need to include:
- Personal Information: Enter your full name and Social Security Number (SSN). If you’re married, you’ll also need to provide your spouse’s name and SSN.
- Home Address and Phone Number: Include your current home address and a reliable phone number where you can be reached.
- Payment Details: Specify the amount you plan to pay each month and the date you want these payments to begin.
- Signature and Date: Make sure to sign and date the form to confirm all the information provided is accurate.
- Electronic Funds Transfer (EFT) Authorization: If you’re opting for automatic payments, you’ll need to provide your bank’s name and address, along with your bank routing number and account number. This section also requires your signature and the date to authorize the transfer.
By carefully filling out these sections, you ensure that your installment agreement request is complete and ready for submission.
How to Fill Out FTB 3567 Installment Agreement?
Filling out the FTB 3567 Installment Agreement form doesn’t have to be complicated. Here’s a straightforward guide to help you complete the process smoothly.
Step 1: Get the Form
Start by downloading the FTB 3567 Installment Agreement form from the official Franchise Tax Board (FTB) website.
Step 2: Enter Your Personal Information
Fill in your personal details such as your full name, home address, Social Security number, and contact information. This ensures that the FTB has the correct details to process your request.
Step 3: Specify Tax Details
Next, provide the details related to your tax liability. This includes the tax year in question and the amount you owe. This helps the FTB understand your current tax situation.
Step 4: Set Your Payment Terms
Indicate the amount you can afford to pay each month as part of the installment plan. Choose the date you’d like the payments to begin, as said earlier. It’s important to pick a realistic amount that you can commit to paying consistently.
Note: If you choose to make your payments through EFT, you’ll need to complete the EFT Authorization on Page 3 of the form.
This allows the FTB to automatically withdraw the payment from your bank account on the date you select each month. Remember, you must choose a date on or before the 28th of the month to avoid delays in processing your request.”
Step 5: Review, Sign, and Submit
After filling out all the necessary information, review the form to ensure accuracy. Once everything looks correct, sign and date the form. You can then submit it to the Franchise Tax Board either by mail or through their online submission portal.
This simple approach ensures that you fill out the FTB 3567 form correctly, helping you set up your installment agreement with ease.
How to Submit Your FTB 3567 Installment Agreement Request?
When you’re ready to submit your FTB 3567 Installment Agreement Request, you have several options to ensure your request is processed efficiently. Here’s how you can do it:
Submitting by Mail
To submit your request by mail, complete and sign Page 3 of the FTB 3567 form. Once you’ve filled out the necessary details, send the form to the following address:
STATE OF CALIFORNIA
FRANCHISE TAX BOARD
PO BOX 2952
SACRAMENTO, CA 95812-2952
Ensure that all the information you provide is complete and accurate to avoid any delays in processing your request. Keep in mind that if you already have an existing installment agreement or if there’s a current IRS wage garnishment (such as an Order to Withhold or Earnings Withholding Order for Taxes), you should not submit this form. Instead, contact the Franchise Tax Board at 800.689.4776 for further assistance.
Submitting by Phone
If you prefer to submit your request over the phone, you can call the Franchise Tax Board at 800.689.4776. Phone lines are open from 8 a.m. to 5 p.m. on weekdays, except for state holidays. For individuals with hearing or speech impairments, you can use the California Relay Service by dialing 711 or 800.735.2929.
Checking the Status of Your Request
After submitting your installment agreement request, you may want to check its status:
- If You Applied Online: Visit the FTB website at ftb.ca.gov, search for “installment agreement,” and select the option to check the status. You’ll need your Social Security number and the confirmation number you received when you submitted your request.
- If You Applied by Mail or Phone: You should receive written notification from the Franchise Tax Board within 30 days of submitting your request. If you don’t hear back within that timeframe, contact them at 800.689.4776 to inquire about your application’s status.
Making Payments While Awaiting Approval
While waiting for approval of your installment agreement request, it’s a good idea to start making the monthly payments you’ve proposed.
- To Pay Online (Web Pay) or by Credit Card: Visit the FTB website and search for “payment options.”
- To Pay by Check or Money Order: Make your payment payable to “FRANCHISE TAX BOARD” and include your account number on the payment. Mail your payment to:
STATE OF CALIFORNIA
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO, CA 94267-0011
By following these steps, you can submit your FTB 3567 Installment Agreement Request correctly and manage your tax liabilities effectively. For any assistance, Peter Salinger is ready to provide expert guidance.
He can also help you resolve various tax issues, whether you need assistance with payroll tax return services or getting a Currently Not Collectible Status. He is known as the best tax expert in Jacksonville and provides his services nationwide, making sure you get the support you need wherever you are.
What Happens After You Submit Your Installment Agreement Request?
After you submit your FTB 3567 Installment Agreement Request, here’s what you can expect:
If Your Request is Approved
If the Franchise Tax Board (FTB) accepts your installment agreement request, they will send you a confirmation notice. This notice will include the payment amount and the due date for each of your monthly payments. You’ll also be informed of the date when your first payment is due.
It’s important to follow all the terms and conditions outlined in the agreement to avoid any issues. If you fail to comply with these terms, the FTB will notify you of their intent to terminate the agreement. This notice will be sent 30 days before the termination date, and will explain the reason for this action.
If Your Request is Denied
If your installment agreement request is rejected, you have the option to request an independent administrative review. To do this, you must submit a written request within 30 days from the date of the rejection notice. If you miss this deadline, the FTB may resume collection actions.
To request a review, send your written appeal along with any supporting documents to the Executive and Advocate Services.
By understanding these steps, you can better prepare for the next actions following your installment agreement request, ensuring you stay on top of your tax obligations.
Impact on Future State and Federal Refunds
When you enter into an installment agreement with the FTB, it’s important to understand how your future refunds might be affected:
State Tax Refunds
If you are due a state tax refund, the FTB will automatically apply it towards your outstanding tax liability. It’s important to note that this does not replace your regular monthly installment payments—you’ll still need to make those payments as scheduled.
Federal Tax Refunds and Treasury Offset Program
Your account may also be submitted to the Federal Treasury Offset Program. This means that any federal tax refund you are entitled to receive could be used to pay off part or all of your state income tax debt. If this happens, you may be charged an additional offset fee. If your tax debt isn’t fully covered in one year, future federal refunds may also be used to satisfy the remaining balance.
Interagency Intercept Collections
In addition to tax refunds, the FTB may intercept any funds owed to you by another state agency and apply them to your tax debt. This ensures all possible resources are used to satisfy your outstanding tax liability.
Understanding these actions can help you better manage your finances while under an installment agreement and avoid any surprises when it comes to your tax refunds and other state payments.
How to Find Your Bank Information?
To complete the authorization for EFT, you’ll need to provide your bank’s routing and account numbers. Here’s how you can find this information:
Locating Your Bank Routing and Account Numbers
Your bank routing and account numbers are typically found on your checks. The routing number is usually the first set of numbers on the left, followed by your account number. It’s important to use a regular check, not a deposit slip, to find these numbers as deposit slips might have different information. If you’re unsure or need help identifying these numbers, it’s best to contact your bank directly for assistance.
Important Note
When providing your bank information, make sure you’re using a regular checking or savings account. Avoid sending a canceled check along with your request, as it’s not required and won’t be accepted.
By correctly identifying your bank details, you can ensure the smooth processing of your EFT authorization.
Mandatory e-Pay Requirements
Starting from January 1, 2009, California’s Revenue and Taxation Code (R&TC) Section 19011.5 mandates that certain taxpayers must make all tax payments electronically. This requirement applies if:
- Your estimated tax or extension payment exceeds $20,000, or
- Your total tax liability for any taxable year beginning on or after January 1, 2009, exceeds $80,000.
If you fall into either of these categories, you are required to remit your payments electronically. Failing to comply with this rule can result in a penalty of 1% of the amount paid, unless you can show that your failure to pay electronically was due to a reasonable cause and not due to willful neglect.
For more details, you can refer to the FTB 1140, Personal Income Tax Collection Information, or visit the Franchise Tax Board’s website and search for “mandatory e-pay.”
Payment Options
If electronic payments are not required, you can still pay online through the FTB website’s Web Pay feature. If you prefer to pay by check or money order, be sure to include your account number on your payment to ensure it’s correctly applied to your account.
This mandatory e-pay requirement ensures that tax payments are processed efficiently and helps avoid any unnecessary penalties.
In Closing!
Dealing with tax obligations is never easy, but clarity and action are your best allies. You’ve taken the time to understand the 3567 Installment Agreement, and now it’s time to put that knowledge to use. Whether you’re ready to start the process or simply feel more informed, remember that taking control of your situation is empowering.
Every step you take from here is a move toward financial stability and peace of mind. Now that you’re equipped with the tools you need, make the decision that best supports your future.
If you need any assistance or have questions, Peter Salinger, an international tax advisor who works both nationwide and internationally beyond boundaries, is here to provide the guidance you need. Reach out to him to ensure you’re making the best decisions for your financial future.
