This IRS notice is a reminder that the IRS says you have a balance on a tax account and that it has not received payment or a response to an earlier notice. It explains the amount, payment options and due date, and asks you to pay by the date shown.
What to have in front of you
- Your notice, including the bottom part.
- The envelope sent with the notice, if you plan to mail a payment.
- Supporting paperwork, such as canceled checks or an amended return, if you disagree with changes to your account.
- The toll-free number printed on the notice, if you need to call the IRS.
Read the notice carefully
The IRS says the notice explains how much it says you owe and when payment is due. It also describes your payment options.
Look at the “Your bill summary” section for the total interest charged. The IRS says it charges interest on underpayments of an outstanding balance until the amount is paid in full.
Keep the due date in view as you consider your response. The IRS asks you to pay by that date. If you cannot pay the full amount, the IRS lists a payment plan as an option. If you disagree with changes to your account, it asks you to call.
Pay online or by mail
The IRS says you can pay the balance online. You can also mail a payment in the envelope sent with your notice.
If you mail a payment, include the bottom part of the notice. The IRS asks you to include it so the payment can be correctly credited to your account. Check your notice for the amount and due date.
Ask for a payment plan
If you cannot pay the full amount now, the IRS says you may qualify for a payment plan, including an installment agreement. You can apply online through the IRS online payment agreement application.
You can also mail Form 9465, Installment Agreement Request. The IRS says it may be able to remove a Failure to Pay penalty, depending on your situation. Contact the IRS by your payment’s due date if you cannot pay the full amount.
Call if you disagree
If you disagree with changes made to your account, the IRS asks you to call immediately. Use the toll-free number printed on your notice.
Have supporting paperwork ready when you call. The IRS lists canceled checks and an amended return as examples. Keep the notice in front of you as well, so you can refer to its account information.
The IRS can discuss the changes with you. You can also authorize someone to represent you before the IRS or to inspect or receive confidential tax information.
Consider an appeal
The IRS says you may want to request an appeal under the Collection Appeals Program, also called CAP, before collection action takes place. Follow the instructions on your notice to request an appeal.
The IRS lists Publication 1660, Collection Appeal Rights, as a reference tool. Your notice provides the instructions for requesting an appeal.
Interest, penalties and collection
The IRS says interest will accrue on an unpaid amount, and additional penalties may apply. The “Your bill summary” section of your notice shows the total interest charged.
The IRS also says a Failure to Pay penalty applies if you cannot pay the full amount. You can call the toll-free number on your notice or apply online for a payment plan. Contact the IRS by your payment’s due date; depending on your situation, the IRS says it may be able to remove the penalty.
If you do not pay the amount due, make payment arrangements or contact the IRS, the agency says it can file a notice of federal tax lien. The IRS describes a lien as a public notice to creditors that the government has a right to your interests in current assets and assets you acquire after the lien is filed. The IRS says a lien can affect your ability to get credit.
If you need to correct your return
The IRS says to file Form 1040-X, Amended U.S. Individual Income Tax Return, if you need to correct your tax return. If you disagree with changes made to your account, the IRS also asks you to call the number on your notice and have your supporting paperwork ready.
Viewing your notice online
You can sign in to your IRS Online Account to view and download the notice. The account also lets you go paperless for certain notices and get email notifications for new notices.
Other help
The IRS says you may be eligible for free help from the Taxpayer Advocate Service or may qualify for help from a Low Income Taxpayer Clinic. It also lists Publication 1, Your Rights as a Taxpayer, and Publication 594, The IRS Collection Process, as reference tools.
You can paste your letter into the Clarify Help box on the home page.
Where this comes from
IRS: What this notice is about.