IRS Back Taxes

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IRS Back Taxes
The collection process

If you do not pay in full when you file your tax return, you will receive written notice of the amount you owe, a bill. This bill starts the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax; for example, when the time period for collection has expired.

For detailed information on paying your taxes by credit or debit card, or other electronic payment, go to, or call IRS at 800-829-1040.

What if I can't pay in full?

If you cannot pay in full, you should send in as much as you can with the notice. For tax payment options refer to Topic 202. The unpaid balance is subject to interest that will compound daily and to a monthly late payment penalty. It is your best interest to pay your tax liability in full as soon as you can to minimize additional charges. You also may want to investigate and consider other methods of financing full payment of your taxes, for example by obtaining a cash advance on your credit card or a blank loan because the interest rate and any applicable fees your credit card company or bank charges may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. Paying off your tax debt by using other financial methods also may keep your tax debt from negatively affecting your credit rating.

Installment Agreement

If you are unable to immediately pay your balance in full, IRS may be able to offer you a monthly installment agreement. To request an Installment agreement, use the Online payment Agreement Application (OPA) or complete and mail with your bill an Installment Agreement Request, Form 9465 (PDF). Complete lines 11a and 11b of from 9465 to have the payment directly debited from your bank account. Direct debit installment agreements require a lower user fee than other installment agreements and help you avoid default of the agreement by making timely payments automatically. Some installment agreements can be established over the telephone. Interest and late payment penalties will continue to accrue while you make installment payments. For additional information on installment payments refer to “Topic 202”.

If you cannot fully pay under an installment agreement, you may propose an offer in compromise (OIC). An OIC is an agreement between a taxpayer and the IRS that resolves the taxpayer’s tax liability by payment of an agreed upon reduced amount. Eagle Tax has been successfully working with different taxpayers and been able to lower their tax liabilities through OIC. Our portfolio shows over 3 million saved for our clients through different programs as OIC, Substitute Return, and Uncollectable and at the same time able to file an installment agreement.

If you are unable to pay anything because of a current financial hardship, we may temporarily suspend certain collection action, such as issuing a levy (explained below), until your financial condition improves. The IRS may, however, file a Notice of Federal Tax Lien (explained below) while your account is suspended. Eagle Tax always recommends that you call the phone number listed on your bill to discuss this option or contact our office at 1-866-3TAXHELP. Interest and late payment penalties will continue to accrue while collection is suspended. If you are a member of the Armed Forces, you may be able to defer payment. See “Publication 3, Armed forces Tax Guide “, which may be obtained from, or by calling 800-829-3676.

I couldn’t be more pleased with the work you’ve done for me. You have been there when needed in a timely way. You’ve been accurate in your assessments and ever professional. I’m pleased with my new, peaceful relationship with the IRS. Thank you again!
-Robert J.

It is important to contact the IRS or our office and make arrangements to pay the tax due voluntarily. If you do not contact theirs or our office the IRS may take action to collect the liability.