Tax Dictionary – Owe Taxes

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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Any time you don’t pay the tax balance shown on your federal income tax return in full by the due date, you create a tax debt.

The IRS can charge penalties and interest on that debt, 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 all the options you may have if you owe taxes and can’t pay.

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