Hi, I’m Bette Hochberger, CPA, CGMA. On today’s Tax Tip Tuesday, I will give you some tips on finding out your tax status and how much you owe the IRS. Let’s dive in!
Keeping track of your taxes can be challenging, especially when you’re busy running your own business. But if you’re unsure whether you owe the IRS money, it could lead to trouble later on.
The good news is that there are several reliable ways to check your payments and outstanding tax bill with the Internal Revenue Service (IRS). I will guide you through the resources and steps to check your state and federal income tax status.
Checking Your IRS Status
If it has been a while since you last filed your tax return, it’s important to check your current status with the IRS. Ignoring official letters from the agency could lead to an unpleasant surprise—a substitute return prepared by the IRS on your behalf. However, this substitute return does not consider itemized deductions and exemptions, resulting in a higher tax liability for you.
The good news is that you can avoid this situation by contacting the IRS to discuss affordable payment options. The IRS is more flexible than you might think when it comes to helping you resolve your tax debts.
To ensure your tax records stay up to date with the IRS, it’s crucial to maintain accurate and current books. If you need assistance with that, feel free to schedule a meeting with me here.
Benefits of Checking Your Tax Status
It is best to stay informed about your current federal and state income tax status, whether you have outstanding tax obligations or simply want to confirm your situation. Neglecting to check your tax status regularly could lead to unexpected interest and penalties accruing over time.
Being attentive to your tax responsibilities is vital for the smooth operation of your business. Small businesses are subject to various tax laws, and non-compliance can result in substantial fines. Moreover, in the event of an audit, having well-documented records will significantly facilitate proving your proper tax payments.
If finding the time to file your taxes is challenging, it might be best to hire an accountant. This way, you can focus on the day-to-day activities of your business without added burden.
Sources to Check Your Federal Income Tax Status
The IRS provides various options for assessing your tax compliance and status. By using the following resources, you can determine any actions taken by the IRS regarding your account and gain a better understanding of your tax situation.
The easiest method to access information about your federal tax status is by establishing an online account on the official IRS.gov website.
Starting in 2022, setting up your online account involves ID verification through ID.me. To complete this process, you will need a government-issued identification document like a driver’s license, state ID, passport, and Social Security number.
During verification, the photo on your government ID will be compared to a selfie you will capture using your smartphone or webcam. Alternatively, you can choose to have a live video call with an ID.me representative as an alternative method for verification.
If you are specifically interested in checking your tax refund status, a dedicated IRS page called “Get Refund Status” provides this information. To access your refund status, you must provide your Social Security number, filing status, and the amount you expect.
Requesting By Mail
If you are unable to access your tax information online, you have the option to request an account transcript from the IRS through the mail. It’s important to note that each transcript only includes information for a single tax year and may not reflect the most recent penalties, interest charges, or any pending actions.
If you need an account transcript for tax returns involving forms other than IRS Form 1040, you should submit Form 4506-T, the Request for Transcript of Tax Return.
Requesting By Phone
Contacting the IRS by phone may not be the most preferred method to obtain your tax status due to long wait times. However, if you choose to call, it is essential to have a copy of your latest tax return readily available to verify your identity and taxpayer ID or Social Security number. Preparing a list of questions and concerns you wish to address with the agent is also a good idea.
You can call 800-829-4933 between 7 a.m. to 7 p.m. local time for information regarding your small business taxes.
I hope you learned something new today. Make sure to save this if you are ever looking for help finding out your tax status and how much you owe.
As always, stay safe, and I will see you next time.