Tax Debt

IRS Definition

If you’re not able to pay the tax you owe by your original filing due date; the balance is subject to interest and a monthly late payment penalty.

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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 what to do if you have tax debt that you can’t pay.

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Your local H&R Block tax pro can look into your issue and deal with the IRS for you.

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