How to Find an Amount Owed to IRS

Owing money to the IRS can create a lot of financial and legal problems.

Owing money to the IRS can cause a lot of sleepless nights. Delinquent taxes can create a whole range of financial problems. If you don't pay this debt off promptly, the IRS can garnish your wages to collect the outstanding amount. A garnishment on a credit report has potential long-term ramifications such as denial of new credit or employment. Before you start paying off the delinquent amount, find out how much you owe, including any penalties and fees.

Instructions

1. Call the IRS, and speak with a representative regarding the amount owed. Have your information ready. If you file jointly, know your spouse's Social Security number and date of birth. Give the representative the information for the person listed first on the tax forms.

2. Inquire about the amount you owe. If the amount is less than $1,000, you can set up a payment plan with the representative right away. However, you can take time to consider your options, especially if the amount is greater than $1,000. You might want to discuss your options with a tax attorney; an experienced tax lawyer not only can give you legal advice but also can negotiate a reduced settlement amount on your behalf. Act promptly to avoid extreme measures such as liens or garnishments against you.

3. Prepare and file tax returns. The IRS requires you to be up to date on the tax returns before setting up an installment plan or making a payment. You can contact your local IRS office for free help with the paperwork. See the IRS website for locations in your area.

4. Contact the IRS to pay the back taxes. You can pay your debt with a check, cash, electronic transfer, money order or a cashier's check.

5. Set up an installment plans for amounts over $1,000 if you cannot pay it in full. Complete IRS Form 9465, Installment Agreement Request, and mail it to the IRS. Include a bill if you received one in the mail. If the amount is less than $25,000, propose a settlement amount you can pay. The IRS will respond within 30 days and will either approve, deny or ask for additional information regarding your situation. The IRS will charge a one-time new agreement fee upon approval of your request. As of December 2010, the fee is $105. When paying by automatic withdrawal from your checking account, the fee is $52. The fee might be reduced to $43 if your income falls within the specific guidelines.

References

• Internal Revenue Service: Haven't Filed an Income Tax Return?
• Internal Revenue Service: Nine Tips for Taxpayers Who Owe Money to the IRS

Resources

• Internal Revenue Service