How to Check a Balance Owed on Back Taxes
InvestorWords.com, a web-based investing glossary, describes back taxes as any tax not paid to the IRS by April 16 of each tax year. Having a past-due tax bill can create many problems such as accruing penalties and interest, forced collection through lien or levy and one of the most humiliating situations, wage garnishment at work. There are two ways to check a balance owed on back taxes: call the IRS directly, or file tax returns for any years that may have been missed.
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Instructions
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Call the IRS. If back taxes are owed, chances are the IRS has sent some form of communication through the mail. To reconfirm any taxes owed or to check a balance, the IRS has taxpayer assistance centers located in all 50 states. The centers are generally open Monday through Friday from 8:30 to 4:30 PM, and are closed on federal holidays. Specific contact information is available on the IRS website by clicking on a respective state on the local contacts page.
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Get W-2s and 1099s. In the event the taxpayer has back taxes due to not filing for a particular year, it's not too late to file returns, even if several years have passed. BackTaxesHelp.com, a website managed by a team of tax attorneys and CPAs based in Connecticut, says to start by contacting former or current employers for W-2 and 1099 earnings statements from previous years.
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Do the math. Begin reconstructing salary data using Form 4852, "Substitute W-2," and attach it to the front of the tax return. These forms are available online at the Internal Revenue Service website. It's important to note that unfiled returns must be filed using tax forms for the tax year on the W-2 statement. For example, a W-2 for tax year 2001 must be filed using tax forms for 2001.
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Pay the balance. Once the IRS has determined the dollar amount of back taxes owed, the experts at BackTaxesHelp.com say the best way to handle this situation is to pay them in full. If a past due balance is paid in full, the account will avoid interest charges and other penalties that are assessed and compounded as each month goes by.
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Establish an installment agreement. Not everyone has enough cash immediately on hand to settle with the IRS. This is why the IRS makes installment agreements. These agreements are the most common method of paying back the IRS. When speaking with the IRS, ask about applying for an installment agreement which, if agreed to, will be sent out through the mail. Make a fixed monthly dollar amount agreement with the IRS, and the back taxes should be paid off within three years.
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