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in this video well be going over tax topic 201 the IRS Collections process from the IRS website if you do not pay your tax in full when you file your tax return you will receive a bill for the amount that you owe this bill starts the collection process which continues until your account is satisfied or until the IRS May no longer legally collect the tax for example when the time or period for collection expires the first notice that you receive will be a letter that explains the balance to and demands payment at full it will include the amount of the tax plus any penalties and interest accrued on your unpaid balance from the date that the tax was due the unpaid balance is subject to interest that compounds daily in a monthly late payment penalty up to the maximum allowed by law it is in your best interest to pay your tax liability in full as soon as you can to minimize the penalty and interest charges you may want to consider other methods of financing full payment of your taxes such
