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.