(a) Any taxpayer or legal representative of any taxpayer may petition the secretary or secretary’s designee for a pay plan whereby the taxpayer may pay an outstanding tax liability, including interest and penalty, on the installment method. The taxpayer shall submit to the secretary or secretary’s designee a financial statement which verifies the taxpayer’s inability to submit payment in full.

(b) The secretary or secretary’s designee shall determine whether a pay plan is warranted by the taxpayer’s financial condition and shall determine the length and conditions for such plan. If a taxpayer fails to comply with the terms of a pay plan established by the secretary or secretary’s designee under this act, all tax, interest and penalty which is due shall be immediately collectible.

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(c) The secretary shall adopt rules and regulations to administer and implement this act including the establishment of criteria governing the length and terms of such plans.