What this notice means
The IRS shows an unpaid balance on your account. The notice explains how it calculated the amount due and lists the payments it applied.
Pay the full amount by the due date and the IRS won't add more interest. After that date, interest grows on any unpaid amount, and you'll face either a late payment penalty or a failure to deposit penalty, based on what you owe.
Why you got it
- Your account still shows a balance after the IRS applied the payments it has on record.
- A payment you made may be missing from the list of payments the IRS applied.
What to do now
- Read your notice carefully. It explains how the IRS calculated the amount due.
- Compare the figures with your tax return, and check the list of payments the IRS applied to be sure all of yours are there.
- If you think the IRS made a mistake, reach out within 10 days of the notice date using the toll-free number on the notice. Keep records like canceled checks or an amended return handy.
- Pay what you owe by the date the notice gives.
- If you can't pay it all, contact the IRS to set up a payment plan or other arrangement. You can also learn about an offer in compromise.
- To let someone like an accountant contact the IRS for you, send Form 2848, Power of Attorney and Declaration of Representative.
If you don't respond
Interest keeps building on any unpaid amount after the due date, plus either a late payment penalty or a failure to deposit penalty, based on what you owe.
Questions people ask
Will I be charged more interest?
Not if you pay the full amount by the payment due date. After that date, interest keeps growing on the unpaid balance.
What if I can't pay the full amount?
You can ask for a payment plan. Call the toll-free number on your notice and ask about your payment options.
What should I do if I disagree?
Call the toll-free number on your notice. Have your records, like canceled checks or an amended return, ready when you call.