Tax Payment Relief Programs and Initiatives Amid the Pandemic

Amid the COVID-19 pandemic, Washington's Collections department responded by offering relief to impacted businesses through payment plans, extensions, and penalty relief. Self-serve payment plans were introduced, enabling taxpayers to budget tax bills over several months. Additionally, flexible payment plans were temporarily extended to businesses negatively affected by COVID-19, with a significant percentage of plans being paid in full or active. For more details on the various payment initiatives, view the images and information provided.

• Tax Relief
• Payment Plans
• COVID-19
• Business Impact
• Washington Collections

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Uploaded on Sep 24, 2024 | 0 Views

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1. Collections June 13, 2022 Business Advisory Council Eric Overson, Assistant Director Compliance Division

2. Washingtons Collections Response During Pandemic Offices were closed to the public with Revenue Agents available by phone and e-mail Relief offered to COVID Impacted Business Payment Plans Extensions Interest and penalty relief

3. Payment Plans- Self-Serve Payment Plans The self-service payment plan is a way for taxpayers to budget tax bills in 3, 6, 9, or 12 months payment terms. (Penalties/Interest are included) If the terms and conditions of the plan are met, Revenue does not proceed with collection activities for debt in a payment plan. If taxpayer defaults the bill will be referred to revenue agent to begin regular collection activity.

4. Self-Serve Payment Plans Launched September 2020 2653 payment plans setup Self Serve Payment Plans 5-31-2022 Paid in Full 18% Active 24% Cancelled 58% Active Cancelled Paid in Full

5. Flexible COVID Payment Plans Temporarily offered a more generous and flexible payment plan option for businesses negatively impacted by COVID who contacted Department. Qualifying periods included February 2020- March 2021. Window to setup COVID payment plan ended June 30, 2021. Percentage of Active Payment Plans, 11.2% Percentage of Defaulted/Cancelled Plans, 31.9% Percentage of Payment Plans Paid in Full, 57.0% COVID Payment Plan Data 5-31-2022 Number of Payment Plans Paid in Full Number of Active Payment Plans Number of Plans Defaulted or Cancelled Total COVID Payment Plans Setup 1256 246 702 2204 5

6. Questions?