If you do not pay in full when you file, you will receive a bill. This bill begins the
collection process.
The first bill you receive will explain the reason for your balance due and demand
payment in full. It will include the tax due plus penalties and interest that are added
to your unpaid balance from the date your taxes were due.
If you believe the bill is inaccurate, please write the IRS office that sent you the
bill, or visit your nearest IRS office. To help us correct a problem, please include a
copy of the bill and copies of any records such as, the front and back of canceled checks
or money orders, or other information that will help us understand what you believe is
wrong. Do not send your original documents. You may also call the IRS at 1-800-829-1040
to discuss why you disagree with the bill. Please have the bill and your records at hand
when you call.
If the bill is correct, but you cannot pay it in full, you should pay as much as you
can and immediately call the IRS to discuss payment of the remaining balance. The unpaid
balance is subject to interest, compounded daily, and a penalty which is added on the 15th
of each month. It is in your best interest to pay your liabilities in full as soon as you can.
You might consider a bank loan, or cash advance on your credit card. For a user fee,
we may be able to offer an individual payment plan based on monthly installments. Complete and return
Form 9465,
Installment Agreement Request, with your bill. Select
Topic 202, What to Do if You Can't Pay Your Tax,
for more information.
If you do not take some action to pay your tax bill or contact us to make arrangements
to settle the account, we may take enforced collection actions.
Some of the actions we may take to collect taxes include:
- Filing a Notice of Federal Tax Lien,
- Serving a Notice of Levy; or
- Offset of a refund.
A lien attaches to all of your property, such as your house and car,
and all your rights to property, such as your accounts receivable.
By filing a Notice of Federal Tax Lien, the Government provides public
notice to your creditors that the Government has a claim against your property,
including property that was acquired after the lien was filed.
Once a lien is filed, it may harm your credit rating. The IRS will issue
a "Release of Notice of Federal Tax Lien" when the taxes, penalties,
interest, and recording fees are paid in full.
A levy is another method the IRS may use to collect taxes that are
not paid voluntarily. It means we can, by legal authority, take and
sell property to satisfy a tax debt. Levies can be made on property
that you hold, such as your car, boat, or house, or on property that
is yours but is held by third parties, such as wages or funds on deposit
at a bank. When you have an outstanding tax liability, any individual
federal tax refund that you are due, will be offset by the amount you
owe and applied to the liability. When doubt exists as to whether you
owe the liability or whether you have the ability to make full payment
on the amount owed, the IRS may be able to settle your unpaid tax balance
for less than the amount owed. Select Topic 204,
Offers in Compromise, for more information.
In all your dealings with the IRS, you have the right to be treated fairly,
professionally, promptly, and courteously by IRS employees.
More information on the collection process is available in
Publication 594,
Understanding the Collection Process.
Publication 1
provides additional information on your rights as a taxpayer. Publications
and forms may be downloaded from this site
or ordered by calling 1-800-829-3676.
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