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<\/a><\/div>\n<\/div>\n<\/div>\nThe IRS has many different payment options for taxpayers who owe money. The important thing is to reach out and arrange a payment plan. As long as you address it, tax debt is almost always manageable. If you ignore it, though, tax debt can grow out of control.\u00a0Here\u2019s what you should know.<\/p>\n For help managing tax debt and other financial matters, consider matching with a vetted financial advisor<\/a> for free.<\/p>\n The IRS Will Never Call You<\/strong><\/p>\n First and foremost, understand that the IRS does not call. Not ever. The agency only sends letters to notify you of a problem or a debt.<\/p>\n If you have received a telephone call claiming to be from the IRS, or making any other claim regarding a tax debt, it is a scam.<\/p>\n What Is Tax Debt?<\/strong><\/p>\n Tax debt occurs when you don\u2019t pay your taxes in full by your filing deadline, typically April 15. For most workers, this isn\u2019t a concern. If you have a W-2 job<\/a>, your employer will automatically withhold your income and payroll taxes. As long as they calculate this withholding correctly (not always a guarantee), your taxes will already be paid by April 15.<\/p>\n But if you\u2019re self-employed, own a small business or just have an employer that screws up your withholding, then you\u2019ll owe money come tax time. If you don\u2019t pay that bill in full, you\u2019ll owe tax debt.<\/p>\n There are three main reasons that people get into tax debt:<\/p>\n Miscalculation \u2013 You paid the full amount listed on your taxes, but made a mistake calculating the amount owed<\/p>\n<\/li>\n Underpayment \u2013 Despite calculating and filing your taxes correctly you paid less than the amount listed<\/p>\n<\/li>\n Evasion or Fraud \u2013 You deliberately attempt to hide your assets or deliberately tried not to pay your taxes owed<\/p>\n<\/li>\n<\/ul>\n The difference between underpayment and tax evasion has to do with intent. With underpayment, you\u2019re honest about the full value of your tax bill even if you don\u2019t pay on April 15. With evasion, you attempt to hide your tax bill or otherwise try not to pay those taxes. In other words, the key difference is whether you operate in good faith.<\/p>\n\n