Paying a Balance Due
A balance due is money a taxpayer owes to the IRS. Experienced tax preparers may refer to a return as being a "bal due" return. This means that instead of receiving a refund, the taxpayer needs to pay the IRS.
Taxpayers can pay their balance due by mailing Form 1040-V, Payment Voucher, to the appropriate address with their payment.
Form 1040-V, is generated by the tax software when the return results in a balance due. Electronic Funds Withdrawal can be set up using the tax software to allow payments to be electronically withdrawn from the taxpayer's checking or savings account on a future date, up to the filing due date. Review the Publication 4012, Finishing the Return tab.
Taxpayers don't need to wait for IRS to send a bill before they ask for a payment plan. The Online Payment Agreement (OPA) tool is available at www.irs.gov.
Advise taxpayers that their payment must be made by the April filing due date to avoid penalties and interest.
Advise the taxpayer that the IRS: