- 1). Refer to your Form W-4. The W-4 is the federal tax form you completed when you were hired. The number of allowances you claimed, your filing status and income help to determine the amount of the federal taxes you should pay. If you are uncertain how much payroll taxes you must pay, check your W-4 and consult with either your payroll professional or the IRS withholding tax tables to ensure you have been paying the proper amount.
- 2). Realize that if you have been claiming an abundance of allowances each year that are not proportionate to your income, you will end up owing back taxes. For instance, if you are earning $40,000 per year and you claim six dependents, you will most likely owe the IRS if you do not claim these dependents on your tax return.
- 3). Pay attention to the notification the IRS sends you. Your employer has to report to the IRS all wages paid to you. Therefore, the IRS is aware of all you have earned and your taxes paid, even if you neglect to file your taxes. Keep in mind that the IRS imposes penalties for not filing or paying taxes. In either case, the IRS will inform you. The notifications generally arrive by regular mail and/or certified mail. Typically, the IRS gives you an opportunity to pay off your back taxes either in a lump sum or installments. If all else fails, the IRS garnishes your wages or imposes a levy on your assets.
- 4). Check with your tax professional or accountant. If you normally entrust your tax filings to a tax preparer, do not assume that she is always filing your taxes accurately and timely. Ask her for copies of each year's tax year return so you can know if you owe back taxes.
- 5). Contact the IRS if you are unsure. You do not have to wait for the IRS to contact you to find out if you owe back taxes. The IRS has many nationwide local facilities with tax professionals who can help you via telephone or in person. In the latter case, you will need to call and make an appointment.
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