If payment for the full amount of tax due is not sent with the tax return, a bill called a Notice of Tax Due and Demand for Payment is mailed to the taxpayer. The notice, or bill, includes unpaid taxes due, plus applicable penalties and interest. It is best to pay the amount due on the bill in full to help minimize the amount of penalties and interest charged. The interest rate a credit card issuer or bank charges may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. For further information on IRS penalty and interest rates, see IRS Notice 433: Penalties and Interest (PDF).

What If the Bill is Wrong?

Taxpayers believing that a bill or notice is wrong should contact the IRS as soon as possible by calling the number on the bill, writing to the IRS office that sent the bill, calling 1-800-829-1040, or visiting a local IRS office.

To help correct the problem, a copy of the bill along with copies of any records, tax returns, and canceled checks, etc., should be gathered to help explain why the bill is wrong. A response by letter should explain why the bill is wrong and include copies of all documents to explain the situation. Original documents should not be submitted. If the IRS confirms the error, an adjustment will be made to the taxpayer's account and, if necessary, a corrected bill sent.