Official Illinois Cpp 1 Form in PDF Open Editor

Official Illinois Cpp 1 Form in PDF

The Illinois CPP-1 form is a request for an installment payment plan that allows individuals or businesses to manage tax delinquencies they cannot pay in full due to financial hardship. By submitting this form, taxpayers can propose a structured repayment plan to the Illinois Department of Revenue, which will review the request based on the provided information. Understanding the details of this form is essential for anyone seeking relief from tax liabilities in Illinois.

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The Illinois Cpp 1 form is an essential tool for individuals and businesses facing financial hardships due to tax delinquencies. This form allows taxpayers to request an installment payment plan with the Illinois Department of Revenue, enabling them to pay off their tax debts in manageable, scheduled payments. The form requires detailed information about both the taxpayer and their spouse, if applicable, including names, addresses, and Social Security numbers. Taxpayers must also specify the tax periods for which they owe money, the amount of their good faith down payment, and the total debt they wish to include in the payment plan. Additionally, the form outlines the frequency of payments—whether monthly, weekly, or bi-weekly—and necessitates bank account information for automatic withdrawals. Importantly, by signing the form, taxpayers agree to the terms set forth by the Illinois Department of Revenue, which include potential consequences for missed payments. Understanding the requirements and implications of the Cpp 1 form is crucial for anyone seeking to alleviate their tax burden through an installment agreement.

Frequently Asked Questions

What is the Illinois CPP-1 form and who should file it?

The Illinois CPP-1 form is an Installment Payment Plan Request. It is designed for individuals or businesses that have tax debts they cannot pay in full due to financial hardship. If you find yourself unable to pay a tax bill or notice you received, this form allows you to propose a payment plan to the Illinois Department of Revenue (IDOR). Filing this form can help you manage your tax obligations in a more manageable way.

When should I file the CPP-1 form?

There is no specific due date for submitting the CPP-1 form. However, it is advisable to file it as soon as you receive a tax bill or notice that you cannot pay. Ideally, you should complete and return the form within 10 days of receiving the notice. Keep in mind that even if you enter into a payment plan, interest and penalties will continue to accrue on the unpaid tax amount.

How will my installment payment plan request be approved?

Your request will be approved based on the information you provide in the CPP-1 form. If your application is complete, IDOR will review it. If they need more information, they will reach out to you. If they determine that you can pay your debt in full, they will require you to do so. If you qualify for the installment plan, you will receive a letter detailing the approval and the conditions of your payment plan.

What are my payment options for the installment plan?

The recommended method for making payments under the installment plan is through ACH debit, which allows payments to be automatically withdrawn from your checking or savings account. If you prefer to make your first payment or any additional payments, you can do so using several methods. These include the MyTax Illinois online system, by phone, or by mailing a check. If you choose to pay by credit card, be aware that a convenience fee will apply. Always refer to the approval letter for specific payment requirements.

Form Specifications

Fact Name Fact Description
Purpose of Form The Illinois CPP-1 form is used to request an installment payment plan for tax delinquencies due to financial hardship.
Governing Law This form is governed by the Department of Revenue Law of the Civil Administrative Code of Illinois and applicable Illinois tax acts.
Eligibility Criteria Individuals or businesses with tax debts they cannot pay in full may file this form to request a payment plan.
Submission Timeline There is no specific due date for filing the form; however, it is recommended to submit it within 10 days of receiving a tax bill.
Payment Method Payments are typically made via ACH debit from a checking or savings account, but other methods like credit cards may also be available.

Common mistakes

  1. Failing to provide complete personal information. It is crucial to fill in all sections accurately, including your first name, last name, and Social Security number. Missing information can delay processing.

  2. Not including your spouse's details when applicable. If you are married and both you and your spouse are liable for the debt, ensure you fill out their information as well.

  3. Using a PO Box instead of a physical address. The form requires a street address for mailing purposes, so using a PO Box will lead to rejection of the application.

  4. Incorrectly identifying the tax periods for which you owe. Clearly specify the months, quarters, or years related to your tax liabilities. Inaccuracies can lead to complications in your payment plan.

  5. Neglecting to include a good faith down payment. This payment is necessary to demonstrate your commitment to the installment plan. Failing to provide it can result in denial of your request.

  6. Not checking the appropriate payment frequency. You must select how often you plan to make payments—monthly, weekly, or bi-weekly. This selection is essential for setting up your payment schedule.

  7. Providing incomplete financial institution details. Ensure you fill in the name of your bank, account numbers, and routing numbers accurately. Any errors can disrupt the automatic withdrawal process.

  8. Forgetting to sign the form. Your signature is a vital part of the application. Without it, your request may not be processed, leading to further complications with your tax liabilities.

Form Preview

_________________________________________________________________
Your spouse’s first name and middle initialLast name
_________________________________________________________________
Street address - No PO Box numberApartment or suite number
Last name
Step 1: Identify yourself (and spouse, if applicable)
A ___ ___ ___ - ___ ___ - ___ ___ ___ ___
Your Social Security number
___ ___ ___ - ___ ___ - ___ ___ ___ ___
Your spouse’s Social Security number
__________________________________________________
Your first name and middle initial
CPP-1

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.

2

$_____________

3

Write the remaining amount of debt to be covered by this installment payment plan request.

3

$_____________

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

INSTALLMENT CONTRACT UNIT ILLINOIS DEPARTMENT OF REVENUE PO BOX 19035

SPRINGFIELD IL 62794-9035

Where do I get help?

Visit our website at tax.illinois.gov

Call our Installment Contract Unit at 217 785-8556

Write to

INSTALLMENT CONTRACT UNIT ILLINOIS DEPARTMENT OF REVENUE PO BOX 19035

SPRINGFIELD IL 62794-9035

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.

Step 2: Describe your debt and installment payment plan request

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.

Step 3: Provide your financial institution and account information

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)

Dos and Don'ts

When filling out the Illinois CPP-1 form, it's essential to approach the process carefully. Here are some important dos and don’ts to keep in mind:

  • Do ensure that all your personal information is accurate, including names and addresses.
  • Do provide your Social Security number and that of your spouse if applicable.
  • Do specify the tax periods for which you are requesting the installment plan.
  • Do make your good faith down payment as large as possible to minimize interest accrual.
  • Do read the instructions carefully before submitting the form.
  • Don’t leave any required fields blank; incomplete forms may delay processing.
  • Don’t use a PO Box for your address; provide a physical street address instead.
  • Don’t forget to sign the form; failure to do so can lead to processing delays.
  • Don’t ignore any requests for additional information from the Illinois Department of Revenue.

Following these guidelines can help ensure that your request is processed smoothly and efficiently. Take your time, double-check your entries, and don’t hesitate to seek assistance if needed.

Documents used along the form

When filing the Illinois CPP-1 form, several additional documents may be required to support your request for an installment payment plan. Each of these forms serves a specific purpose in the process of managing tax liabilities. Below is a list of commonly used forms and documents that may accompany the CPP-1.

  • Form EG-13-I: This form is the Financial and Other Information Statement for Individuals. It is required when your unpaid tax liability exceeds $10,000. It provides detailed financial information to help the Illinois Department of Revenue assess your ability to pay.
  • Form EG-13-B: Similar to EG-13-I, this form is the Financial and Other Information Statement for Businesses. Businesses with tax liabilities over $10,000 must complete this form to disclose their financial status.
  • MyTax Illinois Account: This is an online platform where taxpayers can manage their tax accounts. It allows you to make electronic payments, file returns, and check the status of your installment plan.
  • Payment Authorization Form: If you choose to set up automatic withdrawals, you may need to complete a payment authorization form. This document allows the Department of Revenue to withdraw payments directly from your bank account.
  • Tax Returns: You may need to provide copies of your recent tax returns. These documents help establish your financial situation and verify any claims made on your CPP-1 form.
  • Bank Statements: Recent bank statements may be required to demonstrate your financial condition. These statements provide a snapshot of your income and expenses.
  • Proof of Income: Documents such as pay stubs, profit and loss statements, or other income verification may be needed. This information supports your claim of financial hardship.
  • Correspondence from the Department of Revenue: Any letters or notices received from the Illinois Department of Revenue regarding your tax liabilities should be included. This helps clarify your situation and the basis for your installment request.
  • California Vehicle Purchase Agreement: A crucial document for any vehicle sale in California, ensuring both buyer and seller are clear on the terms. More information can be found here: https://templates-guide.com/california-vehicle-purchase-agreement-template/.
  • Identity Verification Documents: Depending on your situation, you may need to provide identification, such as a driver’s license or Social Security card, to confirm your identity.

Gathering these documents promptly will facilitate a smoother process for your installment payment plan request. Ensure that all forms are completed accurately to avoid delays in approval. Act quickly to address your tax obligations and secure your financial future.

Misconceptions

1. You can ignore penalties and interest while on a payment plan. Many believe that entering a payment plan stops penalties and interest from accruing. However, this is not true. Interest and penalties continue to accumulate until the debt is fully paid.

2. You must pay your entire tax debt upfront. Some think they need to pay their tax debt in full before applying for a payment plan. In reality, the purpose of the CPP-1 form is to request a plan for those who cannot pay their full debt immediately.

3. The form is only for individuals. Many people assume that only individuals can use the CPP-1 form. In fact, businesses facing tax delinquencies can also apply for an installment payment plan using this form.

4. You can submit the form anytime without consequences. While there is no strict deadline for submitting the form, it is recommended to do so as soon as you receive a bill you cannot pay. Delaying could lead to additional penalties.

5. Approval is guaranteed if you submit the form. Some believe that simply submitting the CPP-1 form guarantees approval for a payment plan. Approval depends on the completeness of the information provided and your financial situation.

6. You can change your payment frequency at any time. Many think they can easily change their payment frequency once a plan is set. However, any changes typically require approval from the Illinois Department of Revenue.

7. You don’t need to provide bank information if you want to pay by mail. Some assume that if they plan to send payments by mail, they do not need to provide bank information. However, the form requires this information for setting up automatic withdrawals if needed.

8. Your financial information is kept private. Many people believe that all information provided on the CPP-1 form remains confidential. However, the Illinois Department of Revenue may share your information as necessary to enforce tax laws.