How Can I Check If I Owe Federal or State Taxes?
Uncover straightforward ways to determine your federal and state tax status and interpret official notices.
Understanding tax obligations to federal and state governments is crucial for financial planning and compliance. Owing taxes means a balance is due to a tax authority, such as the IRS or a state’s department of revenue. Proactively checking for outstanding tax liabilities can help prevent penalties, interest accrual, and financial complications.
Checking Federal Tax Obligations
The most direct method for individuals to check federal tax obligations is utilizing the IRS online account. This secure digital portal provides access to personal tax information. Creating and accessing an IRS online account requires identity verification, often involving a photo ID and facial recognition technology.
Once logged in, an individual can view their current tax balance, including penalties and interest, which updates daily. The account also provides access to payment history, tax records, details from the most recently filed tax return, digital copies of select IRS notices, and refund status.
Another way to check federal tax obligations is by requesting IRS tax transcripts. These transcripts are summaries of tax return information, not photocopies of the actual return, and are available for free. Key types include the Wage and Income Transcript, showing data reported by employers and other payers, and the Account Transcript, displaying tax account activity such as payments, penalties, and interest for a specific tax year. Transcripts can be requested online through the “Get Transcript” tool, by mail using Form 4506-T, or by calling the IRS automated phone service.
Direct contact with the IRS is also an option. Individuals can call the IRS Taxpayer Assistance Line at 1-800-829-1040 during business hours. When calling, have personal information ready, such as Social Security number and a copy of a prior year’s tax return, to facilitate identity verification. Tax professionals can also assist taxpayers in accessing and interpreting federal tax account information after receiving proper authorization.
Checking State Tax Obligations
Similar to federal taxes, individuals can check their state tax obligations, though specific methods and agency names vary by jurisdiction. Each state has its own tax department, often called the Department of Revenue, Department of Taxation, or Franchise Tax Board. These agencies typically offer online resources for taxpayers to manage their accounts.
Most state tax agencies provide online portals or account management systems, mirroring the functionality of the IRS online account. States like New York offer “Online Services” accounts where individuals can view their account summary, make payments, and respond to notices electronically. Illinois provides “MyTax Illinois” and California has “MyFTB” accounts. These systems allow taxpayers to see their current balance, payment history, and digital copies of state-issued tax notices.
State tax agencies also issue official notices regarding tax balances or discrepancies, which function much like federal notices. If an individual suspects they owe state taxes but has not received a notice, they should visit their state’s tax department website. The website typically provides instructions on how to access online account information, check payment history, or directly contact the agency. Tax professionals can also be instrumental in navigating state-specific tax inquiries and accessing relevant account details on behalf of a taxpayer.
Understanding Official Communications
Tax authorities, both federal and state, communicate with taxpayers primarily through official notices or letters. These communications often inform individuals about a balance due, changes to a tax return, or a request for additional information. Common IRS notices indicating a balance due include CP14 (demand for payment) or CP501 (reminder of balance due). Other notices, like CP504, may inform of an intent to levy assets if the debt remains unpaid.
Legitimate notices typically include key information such as a notice number (often starting with “CP” or “LTR” for IRS notices), the tax period, amount due, and reason for the correspondence. The notice should also bear official letterhead from the U.S. Department of the Treasury for federal notices, or the specific state’s tax department.
To verify legitimacy and avoid scams, individuals should look for specific identifiers. Official IRS notices will not demand immediate payment via unusual methods like gift cards, wire transfers, or prepaid debit cards. They also do not threaten immediate arrest or legal action. If there is any doubt about a notice’s authenticity, taxpayers should contact the issuing agency directly using official phone numbers found on its website, rather than numbers provided in the suspicious letter. Consulting a tax professional can also provide clarity and guidance on how to respond to official tax correspondence.