The Illinois CPP-1 form is an essential document for individuals or businesses seeking to set up an installment payment plan with the Illinois Department of Revenue due to financial hardship. It serves as a request form to pay tax delinquencies over time, offering a structured solution to manage outstanding taxes. For anyone facing difficulty in settling their tax bills in full and interested in exploring payment options, completing the CPP-1 form is the first step toward financial relief. Ready to take the next step? Click the button below to fill out your form.
Navigating the complexities of tax delinquencies and financial hardships can be challenging. This is where the Illinois Department of Revenue’s CPP-1 form comes into play, offering a structured way for individuals and businesses to request installment payment plans. The form requires detailed information about the debtor, including personal identification, business information if applicable, and specifics of the tax debt in question. It guides the applicant through specifying the tax periods covered, making a downpayment, and outlining the remaining debt. Particularly beneficial is the option to set up ACH debit payments, simplifying the regular remittance process. Signing the CPP-1 form signifies the debtor’s agreement to several crucial conditions, such as the authority of the Illinois Department of Revenue to make withdrawals, the potential for adjusted payment requests, lien filing, and the consequences of failing to adhere to agreement terms. By unpacking the form’s requirements, individuals and entities gain insight into a viable path toward addressing tax obligations responsibly, underscored by the form’s flexible payment arrangement considerations, thereby avoiding more severe collection actions.
Illinois Department of Revenue
Installment Payment Plan Request
_________________________________________________________________
CityStateZIP
Your email address
BIf business debt, identify your business or organization
___ ___ - ___ ___ ___ ___ ___ ___ ___
Federal employer identification number (FEIN)
___ ___ ___ ___ - ___ ___ ___ ___
Illinois account ID
Legal business name: ________________________________
Doing-business-as (DBA), assumed, or trade name, if different from the legal business name on the line above:
__________________________________________________
Business mailing address
City
State
ZIP
(_____)______________
__________________________________________
Your home phone number
Your work phone number
Name of person responsible for remitting payments
Your mobile phone number
Your spouse’s phone number
Phone number
Step 2: Describe your debt and installment payment plan request
1
Identify the tax periods covered by this agreement. _________ _________ _________
_________ _________
2
Write the amount of your good faith downpayment. See instructions.
$_____________
3
Write the remaining amount of debt to be covered by this installment payment plan request.
If your unpaid liability is over $10,000, complete and attach Form EG-13-I or Form EG-13-B. See instructions.
4 Write the date of your first installment payment __ __ /__ __ /__ __ __ __ and payment amount. 4 $_____________
5Check one of the following options to describe how often you will make payments.
One payment per month
One payment per week
Date of month ___ ___
Day of week _______________
One payment every other week Day of week _______________
Step 3: Provide your financial institution and account information
6 ______________________________________________________ Check this box if you do not have a bank account.
Financial institution’s name
____________________________________________________________________________________________________________________
Mailing addressCityState ZIP
Name(s) on the account (list all names)
Routing number ___ ___ ___ ___ ___ ___ ___ ___ ___
Checking or
Savings
Find your routing number at the bottom of your check (for checking accounts) or contact your financial institution for the routing number (for savings accounts).
Account number ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___
Check this box to authorize ACH debit payments from this account.
Step 4: Read the statement and sign below
I agree to, and understand, that (1) the Illinois Department of Revenue (IDOR) is authorized to use the information on this form to make withdrawals (ACH debits) at the frequency I selected in Line 5 and from the account listed on Line 6 in accordance with the Department of Revenue Law of the Civil Administrative Code of Illinois and all applicable Illinois tax acts, and that this authorization remains in effect until the debt is paid or I notify IDOR in writing to cancel; (2) IDOR may request additional information about my financial condition and I may be required to pay a higher amount than the payment plan described above; (3) IDOR has the discretion to file a lien at any time, including, but not limited to, when IDOR determines there is a risk of non- payment; (4) IDOR may contact me about this payment plan at any address and phone number listed in Step 1 (this includes electronic communication by email or text); and (5) if I do not remit the scheduled payment, file all required returns, and pay all taxes when due, IDOR may cancel my installment payment plan, my entire unpaid balance will become due immediately, and IDOR may take enforcement action, including levy of my bank account or wages.
Under penalties of perjury, I state that I have examined this form and, to the best of my knowledge, it is true, correct, and complete.
______________________________________________________________________
__ __ / __ __ / __ __ __ __
Your signature or authorized officer (if officer, write title)
Month, day, year
Department use only
_________________________________ __ / __ __ / __ __ __ __
______________________________ __ __ / __ __ / __ __ __ __
Approved by assignee
Date approved by assignee
Approved by supervisor
Date approved by supervisor
CPP-1 (R-10/20)
This form is authorized as outlined under the tax or fee Act imposing the tax or fee for which this form is filed. Disclosure of this information is REQUIRED. Failure to provide information may result in this form not being processed and may result in a penalty.
Printed by the authority of the state of Illinois — Web only, One copy
See instructions on next page.
CPP-1 back (R-10/20)
Instructions for Form CPP-1, Installment Payment Plan Request
General Information
Who should file this form?
You should file Form CPP-1, Installment Payment Plan Request, if you have tax delinquencies that you cannot pay in full because of a financial hardship and you would like to enter into an installment payment plan with us.
What is an installment payment plan?
An installment payment plan is an agreement between you and the Illinois Department of Revenue to pay your tax delinquencies using regularly scheduled payments. Your scheduled payment amount and the length of time that you have to pay is based on your financial condition.
When is this form due?
There is no specific due date. We recommend that you file this form when you receive a bill or notice which you are unable to pay because of a financial hardship. Once you receive the bill or notice, you should complete and return this form within 10 days. Note: Even when you enter into an installment payment plan, you continue to accrue interest and applicable penalties and fees on the delinquent tax you owe.
When will my installment payment plan request be approved?
Approval of your request for an installment payment plan will depend upon the completeness of the information you provide on this form. If additional information is needed to process your request, we will contact you.
If our review finds that you
•can pay in full, then we will require you to do so.
•qualify for an installment payment plan, we will send you a letter of
approval and the conditions of the installment payment plan.
How must I make my installment plan payments?
ACH debit — If you have a checking or savings account, you may be required to make your installment payments using the ACH debit program. It is the recommended form of payment for installment payments. The ACH debit program allows you to have the installment payments automatically withdrawn from a savings or checking account.
Note: If we approve your installment payment plan request, your plan approval letter will describe the requirements for your payments.
How must I make my first payment or extra payments?
To make your first payment or if you would like to make payments IN ADDITION to your regular installment payments, you may use one of the following options.
•MyTax Illinois — This is the Department’s online account management system. You may use MyTax Illinois to make electronic
payments as well as file returns for most taxes. Go TO mytax.illinois.gov.
•“Pay by Phone” — Call
1 866-490-2061 to make a payment from your checking or savings account. You will need your Taxpayer ID, bank routing number, and bank account number.
•Mail — You may mail your remittance to
INSTALLMENT CONTRACT UNIT ILLINOIS DEPARTMENT OF REVENUE PO BOX 19035
SPRINGFIELD IL 62794-9035
•Credit card (This payment method is only available for Individual Income Tax liability.) — You
may make payments using your Visa, Discover, MasterCard, or American Express. The credit card service provider will assess a convenience fee. Each service provider charges its own rate. The rates can vary daily. The Department of Revenue receives no money from these fees. Please note that this is the only payment option where you will be charged a convenience fee. To make a credit card payment, visit our website at tax.illinois.gov or call 1 866-490-2061 and choose the credit card payment option. If your payment is for a prior year, select “prior year.”
Where do I send my completed form?
Please fax your completed form to us at 217 785-2635 or mail it to
Where do I get help?
•Visit our website at tax.illinois.gov
•Call our Installment Contract Unit at 217 785-8556
•Write to
CPP-1 Instructions Front (R-10/20) Printed by the authority of the state of Illinois — Web only, One copy
Step-by-step Instructions
Step 1: Debtor identification
Line A Complete all lines. If you have a spouse who is also liable, complete the lines about your spouse.
Line B If business debt, complete all lines to identify the business or organization.
Line 1 Identify all tax periods (i.e., month, quarter, or year) for which the liability exists. For individual or business income tax liabilities, write the tax year covered by the return.
If you need additional space, write the tax period beside the line provided or list the tax periods on a separate sheet of paper and attach it to this form.
If you have both individual income tax and other tax debt, submit a separate Form CPP-1 for the individual income tax liability.
If you are requesting an installment payment plan for more than one type of tax other than individual income tax (i.e., sales, withholding, excise, or business income tax), you may combine the tax types on your Form CPP-1. Write the type of tax beside the line provided or list the tax types and periods on a separate sheet of paper and attach it to this form.
Line 2 Write the amount of your good faith down payment (which is due with your completed Form CPP-1). You must make this payment using MyTax Illinois or “Pay by Phone” payment method or by mailing us a check or guaranteed remittance. Please make your down payment amount as large as possible to reduce additional interest accrual. Interest accrues on the tax until paid.
Line 3 Write the amount of debt to be included in your installment payment plan. If your unpaid liability is over $10,000, complete Form EG-13-I, Financial and Other
Information Statement for Individuals, or Form EG-13-B, Financial and Other Information Statement for Businesses, and submit it with Form CPP-1. Both of these forms are available on our website at tax.illinois.gov.
Line 4 For your regular installment plan payments, write the date payments will begin and the amount of each payment. Please make the payment amount as large as possible to reduce additional interest accrual. Interest accrues on the tax until paid.
Line 5 Check one box to tell us how frequently you will make your installment plan payments as identified on Line 4.
Complete all lines about your account. Check the box to authorize the Illinois Department of Revenue to utilize the ACH debit method of payment from this account.
Step 4: Read the statement and sign the form
You (or in the case of a business, the person responsible for remitting payments) must sign the statement. If you do not, processing of your request will be delayed and we may take collection action to collect the unpaid debt.
We will contact you if we do not approve the installment payment plan as you request or if we need additional information from you.
By signing the application, you agree to the following:
(1)the Illinois Department of Revenue (IDOR) is authorized to use the information on this form to make withdrawals (ACH debits) at the frequency you selected in Line 5 and from the account listed on Line 6 in accordance with the Department of Revenue Law of the Civil Administrative Code of Illinois and all applicable Illinois tax acts,
and that this authorization remains in effect until the debt is paid or you notify IDOR in writing to cancel;
(2)IDOR may request additional information about your financial condition and you may be required to pay a higher amount than the payment plan described on this form;
(3)IDOR has the discretion to file a lien at any time, including, but not limited to, when IDOR determines there is a risk of non-payment;
(4)IDOR may contact you about this payment plan at any address and phone number listed in Step 1 (this includes electronic communication by email or text); and
(5)if you do not remit the scheduled payment, file all required returns, and pay all taxes when due, IDOR may cancel the installment payment plan, the entire unpaid balance will become due immediately, and IDOR may take enforcement action, including levy of your bank account or wages.
CPP-1 Instructions Back (R-10/20)
Filling out the Illinois CPP-1 form is a critical step for individuals or businesses facing tax delinquencies and seeking a structured plan for repayment. This form allows for the establishment of an installment payment agreement with the Illinois Department of Revenue, providing a financial reprieve by enabling taxpayers to distribute their tax liability over a series of payments. It’s crucial to provide accurate and complete information to ensure the timely processing of the application and to facilitate a mutually agreeability payment schedule. Below are the steps to properly complete the CPP-1 form.
After completing the form, it's advisable to review all provided information for accuracy to avoid any delays. Upon submission, the Illinois Department of Revenue will process your installment payment plan request. Approval will depend on the completeness and veracity of the provided information. Should the department require additional information or documentation, they will reach out to the contact information provided. Once approved, taxpayers are encouraged to adhere strictly to the agreed upon payment schedule to avoid possible default on the agreement, which can lead to further enforcement actions.
What is the CPP-1 form used for in Illinois?
The CPP-1 form, known as the Installment Payment Plan Request, is used by individuals or businesses in Illinois who are unable to pay their tax delinquencies in full due to financial hardship. It serves as an agreement to pay back taxes owed to the Illinois Department of Revenue (IDOR) through scheduled installment payments.
Who should file the CPP-1 form?
Individuals or businesses that have tax delinquencies and are experiencing financial hardship, making it difficult to pay the full amount due at once, should file the CPP-1 form to request an installment payment plan with the IDOR.
When should you file the CPP-1 form?
There's no specific due date for submitting the CPP-1 form. However, it's recommended to file it within 10 days after receiving a tax bill or notice that you cannot pay because of financial hardships. This proactive step can help manage the situation before accruing additional penalties or interest.
How does the installment payment plan work?
Once approved, an installment payment plan allows the debtor to make scheduled payments over time towards their tax delinquency. The plan's length and the amount of each payment are determined based on the debtor's financial condition, allowing for a more manageable repayment method.
What information needs to be included in the CPP-1 form?
The CPP-1 form requires detailed information about the debtor, including social security numbers (for individuals) or FEIN (for businesses), legal names, addresses, contact information, and the specifics of the tax debt to be covered under the installment plan. Complete all sections to ensure efficient processing.
How do you submit your first payment or make additional payments?
First or extra payments can be made online via MyTax Illinois, by phone, mail, or using credit cards for individual income tax liabilities. Ensure that these payments are in addition to your regular installment payments as outlined in your agreement.
What happens after submitting the CPP-1 form?
After submitting the form, if additional information is needed, the IDOR will contact you. Upon approving your request, they will send a letter outlining the terms of your installment payment plan. It's critical to comply with these terms to avoid cancellation of the plan and potential enforcement actions.
Can the IDOR cancel an approved installment payment plan?
Yes, if there's a failure to make scheduled payments, file required returns, or pay taxes when due, the IDOR may cancel the installment payment plan. At that point, the entire unpaid balance will become immediately due, and the IDOR may take enforcement actions to collect.
Are there any fees associated with filing the CPP-1 form or entering into an installment payment plan?
While the CPP-1 form doesn't have a filing fee, choosing certain payment options, like credit cards, may incur convenience fees. Additionally, interest and applicable penalties continue to accrue on the unpaid tax balance until it's fully paid, regardless of being on a payment plan.
Where can you find more information or get help with the CPP-1 form?
For more information or assistance with filling out the CPP-1 form, visit the IDOR's website, contact their Installment Contract Unit by phone, or write to their PO box. They can provide guidance and answer any questions you might have regarding your tax situation or the payment plan process.
Filling out the Illinois Cpp 1 form accurately is crucial for those seeking an installment payment plan for tax delinquencies. However, mistakes can happen. Here are seven common mistakes people make when completing this form:
Avoid these common errors to ensure a smoother process in requesting an installment payment plan. Paying attention to the details can significantly reduce delays and complications.
When navigating the complexities of tax obligations, particularly in addressing tax delinquencies through an installment payment plan like the CPP-1 with the Illinois Department of Revenue, understanding the supplementary forms and documents that may be needed is crucial. These additional materials play integral roles in ensuring a smooth processing and an adequately managed payment plan or tax handling process.
Understanding and gathering the correct supporting documents and forms is a vital step toward responsibly managing and ultimately satisfying outstanding tax obligations. Taxpayers should remain diligent, seeking clarification when necessary, to ensure all submitted information is accurate and complete. Assistance from a tax professional can also provide valuable guidance through this process.
The Illinois CPP-1 form, crucial for requesting an installment payment plan with the state's Department of Revenue, shares similarities with other tax-related documents designed to facilitate payment arrangements or provide essential taxpayer information. Though each form serves a unique purpose within its jurisdiction, understanding their parallels can provide valuable insights for individuals and businesses navigating financial obligations to various tax authorities.
IRS Form 9465, "Installment Agreement Request", bears resemblance to the Illinois CPP-1 form in its fundamental purpose—to request payment plans for outstanding tax liabilities. Similar to the CPP-1 form, Form 9465 requires taxpayers to detail their tax debt, propose a monthly payment amount, and provide financial account information for payments. Both forms include options to specify payment frequency and start dates, making it easier for taxpayers to comply with their payment obligations while avoiding further penalties and interest. However, the federal form is utilized for tax debts owed to the Internal Revenue Service, highlighting the broader scope of federal tax obligations in comparison to the state-level focus of the CPP-1 form.
California's Form FTB 3567, "Installment Agreement Request", also mirrors the structure and intent of the Illinois CPP-1 form. California taxpayers facing financial hardship can use Form FTB 3567 to arrange a payment plan for their state tax liabilities. Like Illinois' CPP-1, the California form requires identification details, a disclosure of tax amounts owed, and proposed payment schedules. Moreover, it includes provisions for automatic withdrawals from taxpayers' bank accounts, akin to the CPP-1 form's ACH debit options. This similarity underscores a common approach among state tax agencies in managing installment agreements, though specific requirements may vary to accommodate state-specific tax laws and administrative procedures.
Despite the unique attributes of each form—tailored to meet federal or state-specific tax collection processes—the common thread among them is the facilitation of manageable payment solutions. Taxpayers benefit by avoiding the full brunt of financial strain while adhering to their tax obligations, thereby preventing the accrual of additional penalties and the risk of more severe enforcement actions.
Filling out the CPP-1 form for the Illinois Department of Revenue is a crucial step towards setting up an installment payment plan for tax delinquencies. To ensure a smooth process, here are nine do's and don'ts to keep in mind:
By following these do's and don'ts, taxpayers can more effectively navigate the process of establishing a payment plan, thereby making steps towards resolving their tax obligations in a manner that is both manageable and compliant with state requirements.
When it comes to managing tax liabilities, understanding the correct procedures and forms is crucial. The Illinois CPP-1 Installment Payment Plan Request form is often misunderstood, leading to errors that can impact taxpayers' abilities to effectively manage their debts. Below are ten common misconceptions about the form and clarifications to help guide taxpayers through the process more accurately.
The CPP-1 form can only be used for individual tax debts. This is incorrect. While the form is commonly associated with individual tax liabilities, it is also applicable to businesses seeking to arrange installment payment plans for business-related tax debts.
Spouses must file separate CPP-1 forms for joint tax liabilities. Actually, the form allows for the inclusion of both spouses' information, enabling a couple to address joint tax liabilities together.
Filing a CPP-1 form puts an immediate stop to interest and penalties. Interest and applicable penalties continue to accrue until the entire debt is paid off, even after an installment plan is in place.
The CPP-1 form requires a P.O. Box for a mailing address. On the contrary, the form specifically requests a street address, indicating that a P.O. Box number should not be used.
Submission of the CPP-1 form guarantees approval of an installment payment plan. Submitting the form does not guarantee approval. The Illinois Department of Revenue (IDOR) reviews each submission for completeness and the taxpayer’s financial condition before approving any payment plan.
The CPP-1 form is only for those who cannot make any payment. The form is actually intended for taxpayers who cannot pay their tax liabilities in full upfront and are seeking to make payments over time, not for those who cannot make any payments whatsoever.
There is a standard installment amount and schedule for all taxpayers. The payment amounts and schedule are determined based on the individual’s or business's financial condition, meaning there is no one-size-fits-all plan.
Once an installment plan is approved, the payment method cannot be changed. Taxpayers can choose from several payment options, like ACH debit, and can update their method of payment with notification to the IDOR.
Taxpayers must have a bank account to file a CPP-1 form. There is an option to check a box if the taxpayer does not have a bank account, indicating alternative arrangements can be made.
There’s a specific due date to file the CPP-1 form. There is no specified due date for submitting the CPP-1 form; it should be filed when the taxpayer is aware they cannot pay their tax bill in full due to financial hardship.
Clearing up these misconceptions makes the process of applying for and understanding the installment payment plan request smoother for all parties involved. It’s essential for taxpayers to carefully review the form and its instructions, or to consult with a professional, to ensure they fulfill their tax obligations in a manner that best suits their financial situation.
Filing the Illinois CPP-1 form is crucial for individuals and businesses facing financial hardship who cannot pay their tax delinquencies in full and seek an installment payment plan. Here are key takeaways to ensure the process is completed efficiently:
Submitting the completed CPP-1 form, along with any required additional documentation, by fax or mail is the final step to initiating the review process. Timely action upon receiving a bill or notice is recommended to avoid additional penalties and fees.
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