When the IRS Sends You a Tax Bill - What to Do, and What Not to Do

If you filed your taxes, and was not able to pay the amount owed, the IRS will send you a tax bill. However, if you didn't file your tax return(s) and the IRS sends you a tax bill - you want to call a tax professional, immediately.

The IRS can legally prepare what they call a "Substitute Return" and they can then legally levy your bank account(s) or garnish your wages - based on the outcome of a "Substitute Return"

The problem is, when the IRS prepares a "Substitute Return" they do NOT include all of your expenses or exemptions. And how can they, they don't have direct access to this information.

Therefore, in order to get the amount owed, based on a "Substitute Return" you MUST file your own return. Below is a list of what you need to know about making Federal Tas Payments - Remember, if you forgot to file the tax return, contact a tax professional, immediately, if the IRS sent you a tax bill.


Everything You Need to Know About Making Federal Tax Payments

If you need to make a payment with your tax return this year, the IRS wants you to know about its payment options. Here are 10 important facts to help you make your tax payment correctly.

1. Never send cash!

2. If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal via tax preparation software or a tax professional.

3. Whether you file a paper return or electronically, you can pay by phone or online using a credit or debit card.

4. Electronic payment options provide an alternative to checks or money orders. You can pay taxes or user fees 24 hours a day, seven days a week. Visit the IRS website at www.irs.gov and search e-pay, or refer to Publication 3611, Electronic Payments for more details.

5. If you itemize, you may be able to deduct the convenience fee charged for paying individual income taxes with a credit or debit card as a miscellaneous itemized deduction on Form 1040, Schedule A, Itemized Deductions. The deduction is subject to the 2 percent limit.

6. If you file on paper, you can enclose your payment with your return but do not staple it to the form.

7. If you pay by check or money order, make sure it is payable to the “United States Treasury.”

8. Always provide on the front of your check or money order your correct name, address, Social Security number listed first on the tax form, daytime telephone number, tax year and form number.

9. Complete and include Form 1040-V, Payment Voucher, when mailing your payment to the IRS. Double-check the IRS mailing address. This will help the IRS process your payment accurately and efficiently.

10. For more information, call 800-829-4477 and select TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in Publication 17, Your Federal Income Tax and Form 1040-V, both available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).