Learn what IRS Notices you may receive if you fail to pay your taxes when you file your return. This is a tax bill for the amount owed and the first step in the collection process. The collection process will continue until you have satisfied the debtor when the IRS can no longer legally contact you. However, during that process, the IRS will become more aggressive when action isn’t taken.

The first thing you need to do if you receive a notice stating you owe money is to check the return address to see if the notice came from the IRS or another agency. If the notice comes directly from the IRS, it will include detailed instructions on how to respond and get more information.

Additionally, if the notice is from another agency, such as your state tax department, you may need to call for further instructions. If the letter is from the Department of Treasury Bureau of the Fiscal Service, it often means the IRS took part of your tax refund to cover another, non-IRS-related debt. Once you know where your notice came from, the next step is to understand your notice.

Taxpayers commonly receive notices for one of the following reasons:

• Information
• Threaten a tax lien
• A refund to fulfill the debt
• Warn the seizure of property of assets
• Inform of your right to appeal a tax levy

The first type of notice typically includes the amount owed, the due date, and payment options. What can you do if you receive this notice? If you’re able to pay the tax debt in full by the due date, you will not incur additional penalties. However, after the due date marked on the notice, the IRS will start adding penalties and interest every month.

In order to avoid penalties and interest, address your tax notice as soon as it arrives. What happens if you can’t make the payment in full? Consider hiring a licensed tax resolution professional to help you apply for tax relief like an installment agreement and offer-in-compromise.

To learn more about the IRS Notices you may receive and what they mean, read this article. If you want to get the issue resolved, another option is the Fresh Start program. Find out more about this program.