Why is the IRS saying I owe them money?

Why is the IRS saying I owe them money?

You go downstairs in the morning and find a letter from the IRS saying you owe them money. You pinch yourself and realize you are not in bed. While the IRS features heavily in the nightmares of many small business owners, this time, it is for real.

Putting the letter back in its envelope and hiding it on the bookshelf will not help. Your only option is to confront things. Like any worrying situation, it helps to have support.

Don’t panic

Unless you know that the tax return you submitted was inaccurate, there is no need to assume it is. The IRS makes mistakes, just like everyone else.

A recent report found the IRS had a backlog of almost 15 million tax returns. Their system will automatically send out notices of tax due to many of these people and businesses. If they have not read your tax return or have not opened the envelope you sent containing your check, they will not know that you are up to date on your taxes.

What if you might owe money?

Maybe you were unsure how to enter something on the form and think you made a mistake. Does that mean you will be heading to jail? No. When the IRS sends you a notice of tax due, it gives you a chance to put things right. If indeed they were wrong in the first place.

If you agree that you owe money and can afford to pay, do so before the IRS adds penalties and interest. If you can only afford to pay some or are unsure if the IRS is correct, get help to understand what to do next.

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