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.
Tax Topics & FAQs | 1998 Tax Year Archives | Tax Help Archives | Home
