How to Find Out if You Owe Back Taxes

Many individuals may not be aware if they owe back taxes. Various situations can lead to an outstanding tax balance, such as errors in past filings, underpayments, or unfiled returns. Checking your tax status can prevent penalties and interest, providing clarity on your financial standing with the Internal Revenue Service (IRS). This helps you address discrepancies promptly and ensures compliance.

Gathering Necessary Information

Before checking your tax account, gather specific personal and financial information. This preparation ensures a smoother and more successful verification process. You will need your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), date of birth, and current mailing address.

Your filing status for relevant tax years, such as Single, Married Filing Jointly, or Head of Household, will also be needed. Your Adjusted Gross Income (AGI) from a prior tax return, typically from the most recent one or two years, is also required. You can locate your AGI on your Form 1040, U.S. Individual Income Tax Return.

Accessing Your IRS Account Information

Once you have gathered the necessary information, you can access your IRS account details through several methods.

Online Account

The IRS offers an online account system that allows you to view your tax balance, payment history, and tax records. To access this, you will need to create an account through the IRS website, which involves an identity verification process. Once verified, you can sign in to your online account to view your total payoff amount, tax balance for each year, and details of any payment plans.

Phone

You can contact the IRS by phone at 1-800-829-1040. This line is available Monday through Friday, from 7 a.m. to 7 p.m. local time. When you call, be prepared to provide personal information for verification, such as your SSN, date of birth, and AGI from a prior year. A representative can then access your account details and provide information on your balance and tax returns.

Mail (Requesting Transcripts)

You can also request a transcript of your tax account information by mail. Complete and submit IRS Form 4506-T, Request for Transcript of Tax Return. Select the “Account Transcript” option, which details transactions for each year, including payments, tax assessed, and penalties.

You will need to fill in your name, SSN or ITIN, current address, and the tax years for which you are requesting information. The completed form should be mailed or faxed to the appropriate IRS address listed in the Form 4506-T instructions. It typically takes 5 to 10 business days to receive the transcript by mail once the IRS processes the request.

Understanding Your Tax Account Details

Once you obtain your tax account information, understand how to interpret the details to determine if you owe back taxes. Both methods provide a clear overview of your financial standing with the IRS. Your online account summary or Account Transcript will show a “Balance Due” amount. It will also specify the tax years for which a balance is owed.

It is important to differentiate between the principal tax owed, any penalties, and accrued interest. The Account Transcript itemizes these components separately, providing a detailed breakdown of your debt. Common reasons for owing back taxes include underpayment of estimated tax, unfiled returns for prior periods, adjustments made after an audit, or miscalculations on original returns.