Tax Dictionary – Owe IRS

IRS Definition

While most taxpayers get a refund from the IRS when they file their taxes, some do not. The IRS offers several payment options for those who owe taxes.

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You owe the IRS if you don’t pay the full tax balance shown on your federal income tax return by the due date.

The IRS can charge penalties and interest on that tax balance, and those will add up until you pay off the tax debt.

The IRS will send you increasingly urgent notices requesting payment. If the IRS doesn’t receive a response, the IRS can begin enforced collection action, such as issuing a levy on your wages or bank accounts, or filing a federal tax lien.

Learn what to do if you owe the IRS and can’t pay.

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