I Notice I Owe

Today TaxMama hears from Lynne in Mansfield, Texas, who says, “I received a notice that payment is owed. Will I be able to file my taxes and have them take the amount out that is owed? And still receive a refund?”


Dear Lynne,

Well, that must be depressing.

I can’t answer you since I know nothing about your current income or withholding – or how much is due. You’ll simply have to do your own math.

But, if you do have a refund coming when you file your next tax return – and you haven’t paid that bill, IRS will gladly take their money from your next refund.

And if that doesn’t pay the bill, they’ll take it from the refund after that … and so on.

Of course, they’ll also add interest and penalties along the way. So you may consider calling them now and arranging to pay the bill sooner.

Incidentally, if you ignore that notice and just count on IRS to take your next refund, you may not like the results.

IRS’s collection series is automated. The computer has a tendency to send out their notices in sequence if you don’t call them and stop the sequence.

You’re apt to get a wage levy notice before you’re ready to file your next tax return.

So, give IRS a call. Have someone make a notation on your account record that you’d like them to put collections actions on hold for about 45 days. Hopefully, by then, you can prepare your tax return and know if you have a refund coming or not.

And remember, you’ll find answers to lots of questions about IRS notices and other tax information, free. Where? At TaxMama.com

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