The Commission may enter into an agreement allowing the employer to submit regular scheduled payments
to liquidate their delinquency.
Field tax examiners are responsible for securing C-104, Installment Payment Proposals. State Office
examiners will approve or reject these agreements. When a payment agreement is approved or rejected,
an appropriate comment is placed on the account. The State Office may set up payment agreements
at the request of the employer and subsequently inform the field examiner assigned to the account.
A copy of the agreement should be faxed or mailed to the field examiner.
While we prefer plans to not exceed duration of six months, TWC accepts plans for a twelve-month
period if statute is not an issue. In the event the employer requires more than twelve months to
liquidate the account, collection action, i.e. tax lien and assessment action will be initiated.
The employer should continue to make payments during these collection processes. If the employer
keeps current on their payment schedule, TWC will not issue a freeze on their bank account. If
the employer is active, they should file their quarterly reports timely and pay current taxes.
If they do not, the payment agreement is in default and all collection action will continue.
Once the freeze/levy procedure is initiated, TWC can, by law, no longer accept a payment agreement
for the balance frozen by the bank. If the bank is not holding the full amount of our freeze, a
payment plan may be initiated using the amount frozen as a down payment, or an amount equal to
between 15 - 20% of the total debt.
Requests for payment plans on accounts with a pending assessment should be discussed with an examiner
in the Civil Actions Unit.
Once a final judgment or final assessment is obtained, the plan may be for a period of up to 36
The employer should be advised that interest continues to accrue on the unpaid tax balance.
October 24, 2007