To keep track of exactly how much you owe to the Internal Revenue Service, the IRS provides an online tool that quickly shows your tax debt, your exact payoff amount, up to two years of payment histories (if you back taxes) and important information about the tax returns you originally filed.
This IRS online tool also lets you choose payment options and order a transcript of your latest tax filing. Payment options include bank accounts, checks, money orders, credit cards or debit cards. The IRS also allows you to pay through their Electronic Federal Tax Payment System. You may also choose to pay your tax debt during e-filing of your taxes with the IRS’ Electronic Funds Withdrawal method.
More About the IRS Online Tool for Determining Taxes Owed
Every 24 hours, the IRS updates payments to reflect the amount of taxes owed. You should allow at least one week and not more than three weeks for a payment to appear in your payment history. Additionally, the online tool is not available 24/7. You can access the online tool Monday through Saturday from 6:00 a.m. to 9:00 p.m. (Eastern Standard Time). The tool is available on Sundays from 10:00 a.m. until midnight Eastern Standard Time.
iOS 11 or macOS 10.12 users may have difficulty accessing the online tool. If this occurs, the IRS provides other ways to learn how much you owe in back taxes.
Businesses or individuals who filed tax forms other than the 1040 form can receive transcripts by submitting a request for a transcript of their tax return: Form 4506-T. Account transcripts cover only one tax year. Also, they may fail to show current penalties, pending actions or interest regarding back taxes.
Can You Call the IRS to Find How What You Owe?
Yes, the IRS accepts phone calls from individuals who require online assistance with a tax debt or other tax problem. The number to call to find out how much you owe the IRS is 1-800-829-1040. This service is available Monday through Friday from 7 a.m. to 7 p.m. EST.
Business owners needing information about their taxes can call 1-800-829-4933 Monday through Friday 7 a.m. to 7 p.m. EST.
Does the IRS Mail Notices of Back Taxes or Other Tax Debt?
Yes, they do. If you received a recent notice in the mail from the IRS, the balance you owe should be on that notice. However, that amount will not show the amount of penalties or interest you may have accrued prior to the notice being mailed.
You should also be aware that the IRS tends to mail notices containing only one year of back taxes owed. Consequently, taxpayers owing multiple years of back taxes will need to calculate the total sum by adding up balances detailed on other notices. Remember, you can always access up-to-date information of your tax debt by using the IRS online tool.
What Happens If You Cannot Pay Your Tax Debt?
The IRS allow businesses and individuals owing back taxes to make monthly installments. You must apply for the IRS payment plan and agree to monthly installments.
You may also qualify for what the IRS calls their Offer in Compromise. This offer lets you settle a tax debt by paying less than what is owed.
Get Started for free with Wiztax to learn more about settling tax debts for much less that what you originally owe.
If you can show that making any payment to the IRS for back taxes would create a financial hardship, you can also apply for a “Currently Non Collectible” (or CNC) status. If you qualify, the IRS will not expect payments when you’re CNC status until your financial situation improves. Wiztax can also help you with this too – all for a one-time payment.
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