2021 COVID-19 Installment Program

In an effort to provide financial relief to distressed businesses negatively impacted by the current economic climate, the Office of Finance will offer an installment agreement program for delinquent annual 2021 business taxes. The program provides an opportunity to pay delinquent taxes and avoid interest and penalties which can amount up to over 40% of the principal tax due. The installment agreement must be entered between July 1, 2021 and September 30, 2021. If timely payments of all installments are made, no interest and penalty shall be due. For more information on how to request an installment plan please visit finance.lacity.org/installment-agreement.

For assistance in determining if you may enter into an installment agreement, you may call or visit any of our offices.  Please make sure to have the following:

Image result for check mark icon  Name of You or Your Spouse (if applicable)

Image result for check mark icon  Account number

Image result for check mark icon  Social Security Number or EIN

Image result for check mark icon  Brief description of your business activity

Image result for check mark icon  Daytime phone number (including area code) or email

 

FAQs:

    1. I have outstanding liabilities for previous tax periods (i.e 2020, 2019, etc). Can I participate in this program for tax periods other than 2021?

  • No, the 2021 COVID Installment Plan is only valid for delinquent 2021 annual business taxes of at least $300.

    2. I have delinquent cannabis payments for 2021. Can I take advantage of this program?

  • This program is not applicable for cannabis, monthly, quarterly or any other taxes or fees that are not reported annually.

    3. What is the minimum liability amount that qualifies for an installment agreement?

  • Customers must have a minimum principal tax liability of $300 or more to participate in this progra

    4. Can I request an installment agreement for 18 months?

  • The Installment agreement term cannot exceed 12 month

    5. What happens if I miss a payment during this installment agreement?

  • All payments must be made timely. If the installment agreement is defaulted, all liability is due.

    6. Can I request an installment agreement if I have not reported my gross receipts

  • Installment agreements must be based on reported Gross receipts. Estimated Gross receipts are not accepted

    7. My account is currently in collections. Can I take advantage of the 2021 COVID-19 Installment Program?

  • If you are requesting an installment plan for 2021 tax period delinquency please submit request per instructions found at finance.lacity.org/installment-agreement. Please indicate if your case is in collections.
  • If an account has been referred to the Citywide Collection Unit, please email finance.SPU@lacity.org.

    8. What should be included in my installment agreement request?

  • Please use the sample letter below as guide. You may also click on the following link, Sample Request Letter, to download the sample letter.

Request for Installment Agreement Letter

Billing Unit

Office of Finance, City of Los Angeles

200 North Spring Street, Room 101

Los Angeles, CA 90012

Office of Finance Billing Unit-

My name is (FILL IN YOUR NAME) and I am requesting participation in the COVID -19 Installment Program and a waiver of interest and penalties.

Below is my personal information necessary to evaluate my candidacy for an installment agreement plan.


-  Name of You or Your Spouse (if applicable)

- Account Number

- Social Security Number or EIN

- Brief description of your business activity

- Daytime phone number (including area code)

- Email

Thank you,

YOUR NAME