§ 26-18-807 - Agreements for payment of tax liability in installments.
26-18-807. Agreements for payment of tax liability in installments.
(a) Authorization of Agreements. The director is authorized to enter into written agreements with any taxpayer under which such taxpayer is allowed to satisfy liability for payment of any tax in installment payments, if the director determines that such agreement will facilitate collection of such liability.
(b) Extent to Which Agreements Remain in Effect. (1) In General. Except as otherwise provided in this subsection, any agreement entered into by the director under subsection (a) of this section shall remain in effect for the term of the agreement.
(2) Inadequate Information or Jeopardy. The director may terminate any agreement entered into by the director under subsection (a) of this section if the following conditions apply:
(A) Information which the taxpayer provided to the director prior to the date such agreement was entered into was inaccurate or incomplete; or
(B) The director believes that collection of any tax to which an agreement under this section relates is in jeopardy.
(3) Subsequent Change in Financial Conditions. (A) In General. If the director makes a determination that the financial condition of a taxpayer with whom the director has entered into an agreement under subsection (a) of this section has significantly changed, the director may alter, modify, or terminate such agreement.
(B) Notice. Action may be taken by the director under subdivision (A) of this subdivision only if:
(i) Notice of such determination is provided to the taxpayer no later than thirty (30) days prior to the date of such action; and
(ii) Such notice includes the reasons why the director believes a significant change in the financial condition of the taxpayer has occurred.
(4) Failure to Pay an Installment or any Other Tax Liability When Due or to Provide Requested Financial Information. The director may alter, modify, or terminate an agreement entered into by the director under subsection (a) of this section in the case of the failure of the taxpayer to:
(A) Pay any installment at the time such installment payment is due under such agreement;
(B) Pay any other tax liability at the time such liability is due; or
(C) Provide a financial condition update as requested by the director.