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Why do I have to do my taxes if the IRS knows how much I owe?
Originally Answered: Why do we file our own taxes when the IRS knows how much we owe in the first place? Because the IRS does not know how much you owe. They know how much was deducted from your salary but they don’t know all the details of your other earnings or what may have happened in the year to adjust that.
Does the IRS know how much you owe?
You can access your federal tax account through a secure login at IRS.gov/account. Once in your account, you can view the amount you owe along with details of your balance, view 18 months of payment history, access Get Transcript, and view key information from your current year tax return.
Why do we have to guess your taxes?
You’d have the chance to check whether the information was accurate, correct it as needed and add any pertinent details — that you’re newly married, for example, or have a new child — before sending it. Far better to discover problems early with the I.R.S., whose say matters more than third-party software’s best guess.
Why does the IRS think I owe money?
If the IRS sent you a “notice of tax due” letter, it means that the IRS thinks you have not paid the total amount of taxes that you owe. Whether or not you think you owe taxes or disagree about how much you owe, it is important to act quickly. Notices from the IRS usually include deadlines.
Does IRS check W2 information?
The IRS compares your claimed income against your IRS W2 Form, any 1099s and other tax documents it has received from businesses under your Social Security number to make sure your statement of what you earned matches the records of what these entities say they have paid you.
What percentage of taxes do I get back?
Before you’ve even begun to pay your income taxes, 7.65\% of your income has been withheld. Your refund is determined by comparing your total income tax to the amount that was withheld for federal income tax.
What happens if you owe the IRS a lot of money?
The IRS will provide up to 120 days to taxpayers to pay their full tax balance. Fees or cost: There’s no fee to request the extension. There is a penalty of 0.5\% per month on the unpaid balance. Action required: Complete an online payment agreement, call the IRS at (800) 829-1040 or get an expert to handle it for you.