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 require 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, 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. Although we charge a user fee, we may be able to offer an individual payment plan based on monthly installments. Complete and return Form 9465 (PDF) sp, Installment Agreement Request, with your bill. Refer to Tax 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.
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 "Certificate of Release of Federal Tax Lien" when the taxes, penalties, interest, and recording fees are paid in full.
Notice of a levy is another method the IRS may use to collect taxes that are not paid voluntarily. This 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. If you are receiving federal payments, such as Office of Personnel Management retirement, federal vendor payments, Social Security benefits, or federal employee travel advances or reimbursements your payment may be subject to the Federal Payment Levy Program.
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. Refer to Tax Topic 204, Offers in Compromise, for more information.
More information on the collection process is available in Publication 594 (PDF), The IRS Collection Process. Publication 1 (PDF) provides additional information on your rights as a taxpayer.
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