Will Paying Your Tax Debt In Full Solve Your IRS Tax Problem?

Paying your IRS Tax Debt in full, will fully solve your IRS Tax Problem.

If the IRS says that you owe them “X” number of dollars and you pay them off, the IRS will consider your account to be paid in full, and no additional collection activity will occur.

However, before you pay the IRS you need to look into whether a tax return was filed for the particular year in question because it might be that the IRS prepared a Substitute For Return. If they prepared a Substitute For Return, the amount of tax that they say that you owe may be too high.

Why would that be a problem?

It would be a problem if you go to pay it in full and the amount that they say that you owe is too high because then you would be paying more money than you are legally required to pay.

So in this situation you should get an account transcript and see what has happened.

Has the IRS filed that return for you or did you file be yourself?

If it was filed by yourself, then it is likely that the balances on your account are correct. They probably have some accrue interest and penalties that they have assessed onto your account, but at least the tax that was reported was based upon your filing and not the filing of the IRS.

So if you owe the IRS money and you pay them in full, then the problem is solved.

If you do owe money to the IRS, always look to that solution first to see if you can pay them in full; that will stop all enforced collection activity.