If you owe taxes after filing your return, the IRS will send you a bill outlining the amount due, including any interest and penalties. It's important to pay your tax balance as soon as possible to minimize additional charges.
Payment Options
Pay in Full: The best way to avoid extra costs is to pay the entire amount immediately.
Short-Term Payment Plan: If you can't pay in full, you may qualify for a short-term payment plan of up to 180 days if your total balance is under $100,000.
Installment Agreement: If more time is needed, you can apply for a monthly payment plan by submitting Form 9465 or applying online. Keep in mind that setup fees may apply.
Offer in Compromise (OIC): If you are unable to pay your full tax debt, you might qualify for an OIC, which allows you to settle for a lower amount based on your financial situation.
Currently Not Collectible Status: If paying would cause financial hardship, you may request a temporary delay in collections, though penalties and interest will continue to accrue.
Consequences of Unpaid Taxes
Tax Liens: The IRS may file a Notice of Federal Tax Lien, which places a legal claim on your property and can affect your ability to obtain credit.
Levies and Seizures: If the debt remains unpaid, the IRS may seize wages, bank accounts, Social Security benefits, or property to satisfy the tax debt.
Refund Offset: Future federal and state tax refunds may be applied toward your tax balance.
How to Get Help
If you receive a bill from the IRS, it's important to take action. You can contact the IRS at 800-829-1040 to discuss payment arrangements or visit their website for more details on available options.
By addressing your tax balance promptly and exploring available solutions, you can avoid costly penalties and legal actions while managing your financial obligations effectively.