Tips On Handling An IRS Tax Bill

Tips on Handling an IRS Tax Bill

  1. Don’t Ignore Any Tax NoticesThe IRS doesn’t go away if you ignore them.  Collection efforts will continue to escalate and may result in a tax levy on your bank account. 
  2. Pay the Amount Due.  If you have the ability to pay the balance due, pay promptly to avoid additional penalties and interest as well as continue IRS collection activities. The IRS has many payment options available.  This link will provide you about the IRS’s payment options:
  3. Take out a Loan to Pay Off the IRS.  If you are unable to pay the amount due, it may be in your best interest to take out a loan to pay the bill in full rather than make installment payments to the IRS.
  4. Request a Short Additional Time to Pay.  Based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application at or by calling 800-829-1040
  5. Installment Agreement.  An Installment Agreement provides for the payment of the amount due in monthly installment payments.  If the agreement is approved, a one-time user fee will be charged.  An installment agreement can be requested by (1) using the Online Payment Agreement Application at, (2) Completing and mailing an IRS Form 9465, Installment Agreement Request along with your bill to the IRS, or (3) File Form 9465, Installment Agreement, electronically with your tax return.
  6. Check Your Withholding.  You may want to change your W-4, Employee’s Withholding Allowance Certificate, with your employer to increase the amount of income taxes withheld from your paycheck.
  7. Make Estimated Income Tax Payments.  If you owed money on your income tax return, you may want to consider making additional estimated income tax payments throughout the year to avoid another problem.  
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