How Can I Find Out If I Owe Back Taxes?

Understanding and addressing back taxes is an important aspect of financial well-being. Proactively checking your tax account status can provide clarity and help you manage any potential liabilities. There are clear methods available through the Internal Revenue Service (IRS) to determine if you have unpaid taxes.

Information Needed to Check

Gathering specific personal and financial information is important before checking your tax account status. This ensures a smoother process and accurate identification.

You will need your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), along with your date of birth, to verify your identity. Your current mailing address is also required, and it should match the address the IRS has on file for you. For online verification processes, a government-issued photo identification, such as a driver’s license, state ID, or passport, is necessary.

Accessing your tax records may also require financial information from a previous tax return. This could include your Adjusted Gross Income (AGI) from the most recently filed tax year or account numbers from financial products like a mortgage, home equity loan, car loan, or credit card. IRS notices or letters you may have received are also helpful, as they often contain specific account information or reference numbers.

Methods for Checking Your Tax Account

Once you have gathered the information, several avenues are available to check your federal tax account status. Each method offers a different level of detail and convenience, allowing you to choose the option that best suits your needs. The IRS provides online tools, transcript request services, and direct contact options for taxpayers.

Using the IRS Online Account is often the most efficient way to check your tax balance. After creating an account and verifying your identity through a service like ID.me, you can view your payoff amount, balances for each tax year, payment history, and even digital copies of certain IRS notices.

Requesting tax transcripts provides detailed summaries of your tax information. An Account Transcript shows basic data, including payment history, while a Tax Return Transcript displays most line items from your original return. You can request these transcripts online through the “Get Transcript” service, by phone at 800-908-9946, or by mail using Form 4506-T. Online requests are generally the fastest, providing immediate access to your transcript once identity is verified.

Contacting the IRS directly by phone is another option for obtaining information about your tax account. The general IRS toll-free assistance line for individuals is 1-800-829-1040, available Monday through Friday during local business hours. Be prepared for potentially long wait times, and have your identifying information ready to verify your identity with the representative. For those who prefer in-person assistance, appointments can be made at a local Taxpayer Assistance Center (TAC) by calling 844-545-5640.

Consulting a tax professional can provide comprehensive assistance in checking your tax account and understanding any outstanding obligations. Authorized tax professionals can access client tax records through the IRS’s e-Services or Practitioner Priority Service (PPS), often using forms like Form 2848 (Power of Attorney) or Form 8821 (Tax Information Authorization). They can interpret complex tax data and guide you through the process, which can be particularly helpful for intricate situations.

Understanding and Addressing Back Taxes

Upon checking your tax account, you may discover that you owe back taxes. Understand the information presented and the initial steps to address any liabilities. IRS notices or online account details will typically break down the amount owed, including any penalties and interest that have accrued.

If you receive a notice, such as a CP14, indicating a balance due, carefully review it for the amount owed, the payment deadline, and the specific notice number. Even if you cannot pay the full amount immediately, paying what you can by the due date helps reduce additional interest and penalties. Delays in processing payments can sometimes lead to notices being sent even if a payment has been made, so verifying accuracy is a good first step.

Several payment options are available if you owe taxes and cannot pay the full amount at once. These include short-term payment plans, which allow up to 180 days to pay, and long-term payment plans, known as installment agreements, for those needing more time, often up to 72 months. For individuals, an installment agreement is generally available if you owe $50,000 or less in combined tax, penalties, and interest and have filed all required returns. These plans may involve setup fees, which can sometimes be reduced or waived for low-income taxpayers.

An Offer in Compromise (OIC) is another option, allowing qualified individuals to settle their tax debt for a lower amount than what is owed if they demonstrate an inability to pay the full liability without financial hardship. Eligibility for an OIC is based on factors such as ability to pay, income, expenses, and asset equity, and generally requires all required tax returns to be filed. The Taxpayer Advocate Service (TAS) and Low Income Taxpayer Clinics (LITCs) can also provide assistance and guidance for taxpayers facing difficulties with their tax obligations.