How Do I Check If I Owe Back Taxes?

Unpaid taxes from previous periods, known as back taxes, can lead to significant financial burdens, including accruing penalties and interest. The Internal Revenue Service (IRS) offers channels for individuals to check their tax account and identify amounts owed. Utilizing these methods allows taxpayers to proactively manage obligations and avoid further complications.

Accessing Your IRS Account Information

Individuals can access their tax account information through the IRS online account. Setting up this account requires an identity verification process to ensure data security. You will need to provide identifying details such as your Social Security Number (SSN), date of birth, filing status, and current address. Identity verification often involves using a third-party service like ID.me, where you may submit a photo of a government-issued ID, such as a driver’s license or passport, and take a live selfie or engage in a video chat.

Through the IRS online account, you can review your tax history. This includes your total amount owed, payment history, and established payment plans. The online portal also provides access to tax transcripts, which summarize your tax return information or account activity.

Another method to obtain detailed account information is by requesting an account transcript. This document provides a comprehensive view of financial transactions on your tax account, detailing payments, assessments, and penalties. You can request this transcript online using the IRS’s Get Transcript service, allowing immediate viewing and downloading after identity verification.

Alternatively, request an account transcript by mail using Form 4506-T, “Request for Transcript of Tax Return.” When requesting by mail, provide your SSN and mailing address. The transcript typically arrives within five to ten calendar days if requested through the Get Transcript by Mail service. If using Form 4506-T, expect a processing time of three to six weeks. Account transcripts are available for the current tax year and up to nine prior tax years online, or for the current year and three prior years by mail or phone.

Contacting the IRS by phone is an option to inquire about a balance due. The general phone number for individual tax questions is 1-800-829-1040, available Monday through Friday during local business hours. When calling, be prepared to provide personal verification information, such as your Social Security Number, date of birth, filing status, and details from a prior year’s tax return or any IRS correspondence.

Understanding Your Tax Account Transcript

The tax account transcript details activity on your IRS account. It presents a chronological listing of transactions, including original tax liability, payments, and adjustments. The transcript shows the specific tax year or years for which a balance is owed.

The transcript contains three-digit transaction codes (TCs) indicating specific actions or events. For instance, TC 150 signifies a tax return filing, while TC 300 indicates an additional tax assessment. Penalties (e.g., TC 276 for failure to pay) and accrued interest (e.g., TC 196) are also shown. TC 570 might indicate a hold or pending action. Conversely, TC 846 signals a refund, and TC 826 means an overpayment was transferred.

By reviewing these codes and their corresponding amounts, you can differentiate between original tax liability, penalties, and interest that contribute to your overall balance. The transcript also provides the date to which any accrued penalty and interest were calculated. Note that the transcript provides a snapshot of your account at the time it is generated, and very recent transactions may not yet be reflected.

Next Steps After Identifying a Balance Due

Upon discovering a balance due, a thorough review of the information is the next step. Carefully examine the figures and transaction codes on your tax account transcript to ensure accuracy. This initial review helps confirm the balance is correct and corresponds to your records.

Understanding any associated notices from the IRS is important, as these documents often provide context for the balance owed. For example, a CP14 notice is typically the first communication informing you of an unpaid balance. Notices such as a CP504 indicate the IRS’s intent to levy your assets, while an LT11 notice is a final notice of intent to levy. These notices provide details about the debt and outline potential consequences if the balance is not addressed.

If you believe there is an error in the amount owed, gather relevant records, such as proof of payments or copies of your original tax returns. These documents can support your claim if you need to dispute the balance. For clarification or to address discrepancies, contact the IRS directly. The IRS can provide explanations for the charges and assist in resolving misunderstandings. Address the balance proactively, as outstanding tax debts can lead to further penalties and interest.