If I owe unpaid taxes for last year, but am due a refund this year, will the IRS keep the difference?

Question

Last year, when I filed my taxes, I owed the IRS some money. I didn't pay it – I couldn't at the time. It was only a couple hundred dollars. I guess I have two questions, if you will:

1. If I file a tax return this year and get a refund (things have changed dramatically since last year), will the government keep the difference automatically?

2. If I don't get a tax refund from my tax return this year, or the government doesn't keep the difference automatically, how do I pay the IRS what I owe?

Thanks.

Answer 1

If I file a tax return this year and get a refund (things have changed dramatically since last year), will the government keep the difference automatically?

Yes.

If I don't file a tax return this year, or the government doesn't keep the difference automatically, how do I pay the IRS what I owe?

Not filing a tax return will lead to additional penalties and taxes, so do file. Regardless - you pay by check. You mail it to the IRS center assigned to you based on the residence address, see the instructions to form 1040. You can also submit a form authorizing direct debit from your checking account.

If you pay by check - write down your SSN and the relevant tax year in the MEMO of the check. The cancelled check is your receipt.

The sooner you pay the less the interest and penalties will be.