The Tax Times: IRS is Now Billing Those Who Filed for 2018 but Didn’t Pay

Monday, June 3, 2019

IRS is Now Billing Those Who Filed for 2018 but Didn’t Pay - What to Do?

The Internal Revenue Service advised in IR-2019-99 those now receiving tax bills because they filed on time but didn’t pay in full that there are many easy options for paying what they owe.

Taxpayers can pay online, by phone or using their mobile device. Taxpayer who can’t pay in full may consider payment plans and compromise options; the IRS wants anyone facing a tax bill to know that they have many choices available to them.

If a tax return was filed but the amount owed are unpaid, the taxpayer will receive a letter or notice in the mail from the IRS, usually within a few weeks.

These notices, including CP14 and CP501, which notify taxpayers that they have a balance due, are frequently mailed during June and July.

Recent major tax law changes affect most taxpayers, and while the vast majority are receiving refunds, others discovered that they owe tax this year. Many of them may qualify for a waiver of the estimated tax penalty that normally applies. See IRS Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, and its instructions for details. Taxpayers are reminded to pay as much as possible, as soon as possible to minimize interest and penalties.

Making a payment

Taxes can be paid anytime throughout the year. When paying, taxpayers should keep in mind:

Electronic payment options are the quickest way to make a tax payment.

IRS Direct Pay (bank account) is a free way to pay online directly from a checking or savings account.

Taxpayers can choose to pay with a debit or credit card. Although the payment processor will charge a processing fee, no fees go to the IRS.

The IRS2Go app provides mobile-friendly payment options. Taxpayers can use Direct Pay or card payments on mobile devices.

Taxpayers can pay using their tax software when they e-file. For those using a tax preparer, they can ask the preparer to make the tax payment electronically.

Taxpayers may also enroll in the Electronic Federal Tax Payment System and have a choice of using the internet or phone and using the EFTPS Voice Response System.

Those who can’t pay in full have several options see our prior posts:

Check tax withholding

For many taxpayers, this year’s unexpected tax bill could have been avoided with a Paycheck Checkup. The IRS urges all taxpayers to check their withholding for 2019, including those who made withholding adjustments in 2018 or had a major life change. Those most at risk of having too little tax withheld from their pay include taxpayers who itemized in the past but now take the increased standard deduction as well as two-wage-earner households, employees with non-wage sources of income, and those with complex tax situations.

Taxpayers can figure out the appropriate withholding to their paychecks with the IRS’s Withholding Calculator on IRS.gov. It’s never too early to check withholding.

Need Time To Pay Your IRS Taxes?