A tax is a charge by the government on the income of an individual, corporation or trust, as well as the value of an estate or gift. There are also other forms of taxes, like consumer sales taxes, use taxes and real estate taxes. The objective in assessing tax is to generate revenue to be used for the needs of the public. A tax is not a voluntary payment but an enforced contribution exacted pursuant to legislative authority.
The IRS is responsible for administering and enforcing the internal revenue laws. It is part of the Department of the Treasury. For other relevant tax definitions, visit the Tax Law Glossary in the FindLaw Legal Dictionary.
If you don’t pay in full when you file, you will receive a bill from the IRS. The first bill you receive will explain the reason for your balance due and require payment in full. It will include the tax due plus penalties and interest that are added to your unpaid balance from the date your taxes were due.
If you can’t pay the balance in full, you should pay as much as you can with the notice. The unpaid balance is subject to interest which is compounded daily and a monthly late payment penalty. If you are unable to pay your balance in full, the IRS may be able to offer an individual payment plan based on monthly installments.