If the payment that you make for the total value of your tax is not with the corresponding tax return, then you will be sent a Notice of Tax Due and Demand For Payment, a bill that is sent out by the IRS. This paper includes the list of due taxes that are unpaid, applicable interests and penalties that you owe the IRS. When you receive the bill, it is important that you pay the full amount specified so that you will minimize the penalties of your debt. In fact, the interest rate of a credit card or bank may be lower than the penalties and interests of your tax return combined. To understand more regarding the IRS penalty, you can read the IRS Notice 433: Penalties and Interest.
What if the bill that IRS sent me was erroneous?
The taxpayers who believe that the notice is erroneous should immediately communicate with the IRS by calling their hotline number at 1-800-829-1040 or by visiting the local IRS office.
To help fix the problem, a tax payer can send a copy of the documents to support the claim that the bill is erroneous. Such documents include cancelled checks, tax returns, records, tax returns and so on. A letter that justifies why the taxpayer contest to the bill along with the copies of the documents should be sent to the IRS. It is important that all documents submitted should be original. If the IRS confirms that there is indeed error, the taxpayer will be given adjustments and the corrected bill will be sent.