Payment Agreements for 2011 Taxes
From the City of Xenia Income Tax Rules and Regulations: "Payment agreements are available for individual taxpayers [businesses are not eligible] when the taxpayer(s) can provide documentation of a financial hardship that precludes them from paying their tax, penalty and/or interest when their tax return is filed. Taxpayers are eligible for one payment agreement in a five (5) year period and compound interest of 1.5% per month (or part thereof) is charged. The length of the payment agreement is determined by the Tax Administrator's review of the account and the balances due; however, payment agreements in excess of six (6) months will not be permitted without the approval of the Finance Director."
Payment agreements for tax year 2011 may be negotiated on or after May 4, 2012. Until this date, you should pay as much as you can on your tax balance. Contact Diana Steck at 937-376-7246 AFTER 9 AM on MAY 4, 2012 to discuss the process. Payment agreements must be negotiated before May 10, 2012 to avoid additional penalty. You must have a copy of your 2011 Xenia Tax return to negotiate a payment agreement since your return may not yet have been posted by the Tax Division.
Payment agreements must be negotiated and signed by the taxpayer. On joint returns, either spouse may negotiate and sign the agreement which becomes binding on both parties. No third party may negotiate or sign a payment agreement.
If you had a payment agreement for tax year 2010, 2009, 2008, 2007, or 2006, you will not be eligible for a payment agreement for tax year 2011 unless your taxes due for 2011 were 125% of your 2010 tax liability and good faith estimated payments were made for 2011 OR an additional hardship can be documented (click here for the form to request a hardship payment plan).
All payment agreements have payments due on or before the 1st of each month (payment due dates are not negotiable) and no monthly reminder notices will be sent. The taxpayer is solely responsible for making the required payments each month on or before the 1st of each month. Failure to meet the terms of a payment agreement will immediately subject the taxpayer to legal action.
