Installment payment of tax debts: how to become compliant
Installment payment of taxes is a mechanism that can help companies regularize tax debts and restore compliance with the tax authorities. The conditions vary according to the entity and the available program.
What tax installment payment is
Installment payment is a way of paying tax debts in installments. It suspends the enforceability of the tax credit while the installments are being paid under the agreed conditions, serving as a path to compliance.
Types that usually exist
The options vary according to the federative entity and the legislation in force. Generally, it is common to find:
- Ordinary installment plans provided for by law
- Special regularization programs for a fixed period
- Specific installment plans for debts already registered as overdue tax liability
Effects of enrolling
Upon enrolling, the taxpayer generally assumes acknowledgment of the debt and its enforceability becomes suspended. This usually allows the issuance of a tax compliance certificate, which is important for operations and contracts.
Points of attention
The choice of program and the monitoring of installments influence the outcome. Default may lead to termination and the resumption of collection, which is why enrolling deserves an analysis of the conditions and of the company's cash flow.
Frequently asked questions
Does the installment plan suspend collection and enforcement actions?
As a rule, a regular installment plan suspends the enforceability of the credit. Its effects on ongoing enforcement actions depend on the program's rules and on the procedural situation.
Does enrolling in an installment plan mean acknowledging the debt?
It usually involves acknowledgment of the debt. For that reason, it is prudent to first assess whether any dispute over the collection is possible.
Need guidance on this topic?
This article is informational. For guidance on your specific case, talk to our team.