Two payment dates on a demand note are different from a hardship instalment request. Establish the outstanding amount, due dates and realistic capacity before applying to IRD's Collection Enforcement Section.
What to have ready
Before you start
IRD accepts instalment requests from taxpayers experiencing financial difficulties and advises applying well before the due date. Individuals and sole proprietors can use IR1360 with the required financial details and proposed schedule. The current FAQ describes an initial five per cent surcharge on tax unpaid by the due date and a further ten per cent on the remaining amount, including the unpaid initial surcharge, after six months. Instalment approval does not necessarily waive surcharges or prevent recovery proceedings. Review the actual decision rather than assuming a payment proposal changes the demand note by itself.
What to do, step by step
- Gather the demand notes, years and unpaid balances. Distinguish the ordinary instalments already printed on a bill, overdue amounts and any separate assessments so the proposal covers the correct debts.
- Prepare income, essential expenses, assets and liabilities and propose an affordable amount and date. Include the requested evidence rather than a promise that depends on uncertain future earnings.
- Submit the current form through the official channel and retain a reference. Follow IRD's guidance on payments while awaiting the decision and preserve proof of every amount paid.
- Read the decision's amounts, surcharges and dates and set reminders. If circumstances change, contact the responsible section promptly; do not silently reduce or miss an approved instalment.
Costs, timing, and things to check
A card or bank instalment product is a separate contract. Its fees, interest and timing of payment to IRD need their own check and do not establish IRD approval.
Historical surcharge-relief announcements had specific assessment years and bill dates. Do not apply a 2019-era concession to every 2026 instalment request without a current applicable notice.
If disputing the assessment, preserve the separate objection deadline. Explaining financial hardship does not replace a formal objection to the tax calculation.
A practical example
A taxpayer's income falls shortly before the bill is due. Prepare a supported cash-flow picture and a monthly proposal that can be maintained, recording the application and payments. After approval, check whether surcharges remain. If income disappears the next month, contact IRD about the change rather than paying a smaller amount without explanation and hoping the arrangement is automatically revised.
Apply early with a realistic plan and follow the actual approval and surcharge position.
Official information and enquiries
These are the reference and service entry points for this guide. Check current fees, eligibility, and schedules with the authority. The preparation date is not each source's official update date.