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).

What to Do If Your Receive an IRS Letter or Notice

Below is a list of which the IRS prepared, telling taxpayers what to do if they receive an IRS Notice or Letter. The first thing to do, is to control any fear that you may have. Breath deep, take your time and "OPEN" the letter. Try not to run from the task of reading or responding to the letter or notice.

If you need help, click on the link above. There is always affordable help with IRS issues, if you know where to look. A tax professional works for you. Yes, they are bound by the tax code (law) however, there are procedures which can make things easier for the taxpayer. Don't be afraid to click your mouse and get the help you need to neturalize the IRS.

Eight Facts to Know if You Receive an IRS Letter or Notice

The IRS sends millions of letters and notices to taxpayers for a variety of reasons. Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.

Here are eight things to know about IRS notices and letters.

1. There are a number of reasons why the IRS might send you a notice. Notices may request payment, notify you of account changes, or request additional information. A notice normally covers a very specific issue about your account or tax return.

2. Each letter and notice offers specific instructions on what action you need to take.

3. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.

4. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.

5. If you do not agree with the correction the IRS made, it is important to respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left of the notice. Allow at least 30 days for a response.

6. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right of the notice. Have a copy of your tax return and the correspondence available when you call to help the IRS respond to your inquiry.

7. It’s important to keep copies of any correspondence with your records.

8. IRS notices and letters are sent by mail. The IRS does not correspond by email about taxpayer accounts or tax returns.

For more information about IRS notices and bills, see Publication 594, The IRS Collection Process. Information about penalties and interest is available in Publication 17, Your Federal Income Tax (For Individuals). Both publications are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).