How Can I Tell If I Owe the IRS Money?
- The IRS provides a variety of resources to help you determine whether you owe money. IRS tax tables provide information showing what percentage of tax the government collects for certain things like income, profit from real estate or profit made on investments. If you've made income or profit from a sale, you can consult the tax tables to determine how much money you'll need to pay the government. Keep in mind that the tables don't take into consideration any offsetting deductions.
The IRS website hosts in-depth information, including IRS publications, providing instructions detailing how to contact the correct department or file necessary forms. Some publications cover the percentage of tax due on specific sales. You can also find out what to do if you owe the IRS money. - One of the easiest ways to know whether you owe the IRS money is to wait for a tax bill from the agency. If you've recently moved or you file taxes under a different address than your home address, it can delay the post office's ability to deliver your bill in a timely manner. The bill will include the amount owed and the methods you can use to pay the IRS. Sometimes you'll get a "Notice of Tax Due" letter from the IRS, which is essentially a bill.
Getting a bill or a letter from the IRS doesn't always mean that you owe money. In some cases, the IRS could have erroneous information on record. To correct this, you may need to visit your local IRS office, or contact the office listed on the bill or letter to find out what documentation you need to provide to remedy the situation. In some cases, you may need to hire a tax attorney or request an audit. - Another way to get help in determining whether you owe the IRS money is to work with a certified public accountant (CPA). Most people use a CPA to file their income taxes, and though many people expect a refund, the CPA can let you know if you owe money instead. Software programs designed to file income tax statements will also notify you of a balance owed to the IRS. If you think there's a mistake, get a second opinion.
- If you do owe the IRS money and you fail to pay the debt, the IRS may turn your account over to a collection agency. This usually won't happen until the IRS has made every effort to contact you. But, if you've changed your phone number, moved several times and switched jobs in a short period of time, you may have a bill you haven't been getting.
When this happens, you may begin to get calls, letters or emails from the agency. This can happen even if you weren't aware you owed money to the IRS. In some cases, a representative may begin contacting family and friends, which can lead to embarrassment. If an agency does contact you, get in touch with the IRS to verify that the account is in collections.
IRS Tax Help
IRS Bills
CPA Help
Warnings
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