Tax Dictionary – IRS Balance Due

IRS Definition

If you don’t pay your tax in full when you file your tax return, you’ll receive a bill for the amount you owe. This bill starts the collection process, which continues until your account is satisfied or until the IRS can no longer legally collect the tax.

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 accrued on your unpaid balance from the date the tax was due. If you can’t pay in full, you should send in as much as you can with the notice and explore other payment arrangements.

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If you know you will not be able to pay the entire tax balance due when you file your tax return, you can file a Form 9465, Installment Agreement Request with your tax return to request a payment plan. If you have already filed your return with an unpaid balance due, you can send the Form 9465 on its own.

If you can pay the balance due in full, you can use Direct Pay on irs.gov to pay directly from your checking account or you can pay with a debit or credit card (there is a fee for using a debit/credit card).

If you are unable to pay any of the balance due at this time, complete Form 433-F, Collection Information Statement, and write the IRS to request temporary currently not collectible status until your financial situation improves.

Learn about your options to address an unpaid tax bill.

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