The IRS Collection Process
The IRS sends out millions of notices to taxpayers and third parties every year.
The subjects of the notices range from the transmittal of refunds, inquiries about items included on a return, demands for payment of back taxes to notifications of IRS collection actions.
If you do not pay in full when you file your tax return, you will receive written notice of the amount you owe, a bill. This bill starts the IRS collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax; for example, when the time period for the IRS collection has expired.
The first notice you receive will be a letter that explains the balance due and demands payment in full. It will include the amount of the tax, plus any penalties and interest added to your unpaid balance from the date the tax was due. You may pay the amount due by sending the IRS a check or money order, payable to the United States Treasury, with a copy of the notice. For detailed information on paying your taxes by credit or debit card, or other electronic payment, go to www.irs.gov/e-pay, or call the IRS at 800-829-1040.
If you cannot pay in full, you should send in as much as you can with the notice. The unpaid balance is subject to interest that will compound daily and a monthly late payment penalty. It is in your best interest to pay your tax liability in full as soon as you can to minimize additional charges. Paying off your tax debt by using other financial methods also may keep your tax debt from negatively affecting your credit rating.Let us help YOU
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