HOW MUCH DO I OWE
How Much Do I Owe The IRS?
If you fail to pay your taxes on time in full, the IRS will send you notices known as “CP” letters. The IRS will usually send those letters 60 days after the April 15th tax filing deadline to your last known address. Starting the process of dealing with IRS debt and finding the right solution for you, begins with knowing exactly what you owe.
How to Determine How Much You Owe to IRS
First, you can Order a Record of Account where you will use Form 4506-T, which is titled Request for Transcript of Tax Return form, to find out the total tax balances and adjustments on your account for a particular year. A tax pro can also request this information for you, and obtain even more details regarding your situation. (Carefully read and pay close attention to the instructions provided on Form 4506-T, especially if you are doing this without the help of a tax professional). Form 4506-T has an information summary which outlines:
Tax returns and account transcripts with tax info for the current year and past three years
A Record of Account (federal tax liabilities and related adjustments).
Requesting Your IRS Record of Account Transcript?...
Download and print Form 4506-T, or call the IRS and ask them to send it to you
Fill out your basic contact information at the top
Indicate individual income tax (1040), partnership (1065), or business (940) on Line 6
Check C for requesting a Record of Account; Check B if you want an Account Transcript
On Line 9, indicate which years you want to look at (if more than four, use Form 4506)
Sign, date and send Form 4506-T to the correct IRS address (find it on Page 2 of the form)
Some mistakenly confuse the last form with Form 4506, which is used to obtain a full copy of a tax return and involved attachments going back more than 4 years; it costs $57 dollars per year requested.
*It will take you roughly 45 minutes to complete and submit the form.
Second, you can call or Visit Your Local IRS Office: You can call the National IRS office at 1-800-829-1040 and in most cases it will take 1-2 weeks to have the records delivered to you. Additionally, there are IRS offices all over the country making them very accessible to most.
However, keep in mind that the IRS is a debt collector and may not have your best interests in mind when you go to speak with them, so it makes sense to consult a tax professional before doing so. Upon visiting, the IRS should provide you with your IRS Transcript or Record of Account at the local office.
Third, you can contact a Tax Professional: Not only can a CPA, EA or other tax professional act on your behalf to represent you and find out how much money you owe the IRS using limited power of attorney, a reputable pro can also advise you as to the best way to resolve your tax matters.
Once you have a better understanding of how much you owe you can begin to explore your options for tax settlement. Contact us today by filling in the form below. You’ll speak with one of our highly trained specialists who will answer all of your questions and gently guide you through our step by step process. The consultation is free and if nothing else we hope to point you in the right direction.