Instalment arrangements
Guidelines for instalment arrangements
This service is available to tax compliant agents who belong to a professional body. To help you send us requests for an instalment arrangement quickly and easily, enhancements have been made to the current process for clients without a case manager. Case-managed clients must go through their case manager.
- Please use the template we have provided in the box below.
- Send in as an E-file attachment or secure email.
- Mark your request "Instalment arrangement".
- If using E-file, also mark it "category 3".
- Contact us as soon as you think your client needs an arrangement or wants to re-negotiate an arrangement.
- Include entities with debt that relate to the client in the application and include all tax types. This will speed up processing your request.
- An arrangement doesn't have to be for the same amount each week or month. Repayment amounts can be varied in your proposal when the client has other financial commitments that need to be met.
- An arrangement should pay off debt in the shortest time possible, while keeping ongoing tax obligations current (eg, PAYE/GST). If we think the proposal doesn't meet this guideline, we'll contact you to talk about it. Please note that entering into an instalment arrangement is at our discretion. We don't have to accept an arrangement where, for example, the customer can reasonably pay in full.
- We'll consider arrangements and your role in providing us with information to help this decision is vital. Add any financial or personal details under "additional notes" on the template provided.
- Use-of-money interest will be charged during the arrangement. Our Debt options (IR592) guide has information on interest and penalties. Our Standard Practice Statement SPS (05/11) sets out our practice for entering into instalment arrangements.
- We'll reply to the arrangement request within 3 - 5 working days.
- Please copy and paste the entire text in the box below with all the required fields completed and then send it to us using "Send and receive email" or as an E-file attachment.
- When making arrears payments, please use the tax type "ARR" for automatic payments or on payment slips so we can allocate your payments correctly.
Note
Your client should make the first payment as per the proposal even if we haven't confirmed your arrangement. By using the tax type ARR, our system will allocate the payment correctly to the debt.
If your client has more than one entity owing tax, simply copy and paste points 1 and 2 and enter the new details.
You must make a separate arrangement for each IRD number.
Instalment arrangement
(For electronic use only.)
I ......... have had a discussion with my client ......... who understands the importance of keeping to this arrangement. We have examined their finances and confirm this arrangement can be made. Current obligations to file and pay other taxes can be met. My client has no immediate cash sum to settle the debt in full and no other reasonable method of raising full finance.
Arrangements can have varying payment levels and frequency and may include a part lump sum upfront. Detail any special requirements below.
- A part payment, if applicable, of ......... dollars on day, date, year.
We are offering to pay ......... dollars, weekly or fortnightly or monthly, starting on day, date, year.
My client's estimated annual gross income from all sources is ......... dollars.
- The payment arrangement covers the following:
IRD number .........
The amount ......... dollars approximately.
Please do/do not offset future refunds against my outstanding amount.
Client's current address .........
Client's current phone number .........
Additional notes if needed:
Date published: 07 Dec 2009
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