News: Tax credits you can still apply for!
If the IRS sent you a “notice of tax due” letter, it means that the IRS thinks you have not paid the total amount of taxes that you owe.
Whether or not you think you owe taxes or disagree about how much you owe, it is important to act quickly. Notices from the IRS usually include deadlines. Pay attention to them. You can lose legal rights—and have to pay more money—if you are late.
Do not put off fixing your tax problem. The IRS will add interest and penalties if you wait too long.
This video can help you understand how the IRS collects back taxes. (You need Flash on your computer or smartphone to see this video.)
If you disagree
If you don’t think you owe money or if the amount you think you owe is different from what the IRS says, you have the right to have your case reviewed by an IRS manager or to request a collection due process hearing.
To tell the IRS that you disagree, you can:
- call or write to the IRS office listed on the notice of tax due letter or
- make an appointment to talk to someone in your local IRS office
In Vermont, the IRS has offices in Brattleboro, Burlington, Montpelier and Rutland. You can find the hours, addresses and phone numbers of the Vermont offices on this IRS web page. You must call 1-844-545-5640 to make an appointment before you can meet with an IRS employee in person.
You will need records, like canceled checks and receipts, to help you explain to the IRS why you disagree. Send or give copies of documents — not the originals — to the IRS.
If you agree
If you agree that you owe the amount that the IRS says, pay it if you can. If you can’t afford to pay it all now, contact the IRS to make other arrangements. Don’t put it off.
The IRS may agree to one of the “collection alternatives” described below.
When you owe a debt to the IRS, the IRS may put a lien (claim) on property you own in case you don't repay your debt. The IRS may also levy (take) property, including wages and some other income.
The Taxpayer Advocate Service has more information on what to do if you can’t pay your taxes.
If you need help, contact us at Vermont Legal Aid’s Low-Income Taxpayer Clinic. Fill out our form and we will call you back. Your information will be sent to Legal Services Vermont, which screens requests for help for both Vermont Legal Aid and Legal Services Vermont. You can also call us at 1-800-889-2047.