Deferred Payment Plan

• New Jersey offers taxpayers who cannot afford to pay their income tax bill a deferred payment plan. It is similar to the federal counterpart known as an installment agreement.
  
  

Requirements

• Several guidelines have been established for a New Jersey deferred payment plan. The first is that all tax returns for previous years must be filed. The payment plan may only last 36 months and a minimum payment of $25 a month is required. A taxpayer may also be forced to satisfy set-off programs, such as losing the right to state and federal tax refunds, though other collections efforts are suspended, and the State may file a tax lien against the taxpayer's property.
  
  

Form

• A taxpayer seeking a deferred payment plan should complete the State of New Jersey Department of the Treasury form DPC-1.