Free, 24/7, confidential.

Ask IRD for a payment arrangement on tax debt

Money, banks and bills

Use it when

You owe tax (for example PAYE on a lump sum, a tax bill from contracting or Working for Families overpayment) and cannot pay on time.

Fill in the [brackets]

Subject: Request for payment arrangement - IRD number [number]

Dear Inland Revenue, My IRD number is [number]. I owe [type of tax / debt] of approximately $[amount] due on [date]. My circumstances have changed because I was made redundant on [date]. My current income is $[amount] a week, and my essential costs are $[amount]. I would like to propose paying $[amount] each [week/fortnight/month] starting [date] until the balance is cleared. [Optional: I request that use-of-money interest and penalties be written off or reduced because of my circumstances.] Please confirm if this is acceptable, or let me know a number I can call to discuss it. Thank you, [Your name] [Phone]

Tips

  • You can also ring IRD on 0800 227 773 or use myIR. It is much better to ask before the due date than after.
  • IRD can set up instalment arrangements and in some cases remit penalties and, for serious hardship, write off tax. Interest generally keeps running on unpaid tax.
  • Offer a real amount you can keep paying. Missing payments in the arrangement is worse than offering less.
  • Make sure your tax code is right when you start a new job so you do not build another bill.
  • If you are a contractor, check provisional tax payments. Your payments can be reduced if your income falls (re-estimate).
  • Working for Families or Child Support debts are handled separately. Ask IRD for each.

General information, not legal advice. Keep a copy of everything you send. Spotted something out of date? Email help@unemployed.nz.