How to find out if you owe the IRS money?

Hi there, to cut a long story short, even though I had the worst year of my life last year, I still have responsibility for not filing my taxes. I am not sure if I owe, so how can I make this right?

To find out if you owe the IRS money, check for IRS notices in the mail, log in to your tax account on IRS.gov, review your tax returns, or call the IRS at 800-829-1040. Act quickly if you owe back taxes to manage penalties and payment plans effectively.

1. Gather Your Tax Records: Collect all relevant documents, such as W-2s, 1099s, and any records of income or expenses.

2. Determine Your Tax Liability: Calculate your tax obligation for the missed year. Use tax software or consult a tax professional to determine if you owe money or if you’re eligible for a refund.

3. File Your Tax Return: Complete and submit the required tax forms for the year in question. Ensure accuracy and honesty in reporting your income and deductions.

4. Address Penalties and Interest: Understand any potential penalties and interest that may be applied to your late filing. Explore options for payment plans or installment agreements if you can’t pay the full amount immediately.

5. Seek Professional Help: If your situation is complex or you’re unsure about the process, consider consulting with a tax professional. They can assist you with the filing process and help reduce penalties.

Key Considerations:

  • Statute of Limitations: Be aware of the timeframe during which the IRS can collect taxes.
  • IRS Notices: Address any IRS notices promptly.
  • Payment Plans: Explore IRS payment plans to manage your tax debt.

Remember: Tackling the issue sooner rather than later can help reduce penalties and interest.

I had a rough year similar to yours and neglected my taxes during that time. To get things back on track, I first gathered all my financial documents and then used tax software or consulted a tax professional to file my return. Even if you’re unsure if you owe taxes, filing your return is crucial to avoid penalties. If you owe and can’t pay the full amount, you can set up a payment plan with the IRS. They often offer options to help manage payments if you’re facing financial hardship. Taking these steps will help you address your tax responsibilities and ease some of that burden.

Filing is the only option to rectify a situation in which you failed to file. It’s never too late. You will discover your tax liability when you complete your tax return.
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You won’t know what you owe from the previous year on your IRS transcript or account till you file or the IRS issues a Substitute For Return (SFR), which might take years.

Hi, Joel. You can contact the IRS to obtain transcripts of your tax returns. Each year is reported separately, so you must request transcripts for as far back as you believe you owe.