Here are three ways to do it:

1. Reduce the tax. The first thing that you or an experienced tax professional should do is figure out why you owe the tax.
2. Reduce the penalties. When you get penalties reduced or removed, you also reduce the interest that goes along with them.
3. Set up a monthly payment plan.

Set up a monthly payment plan The best way to stop interest from building up is to pay the full tax bill. But, if that’s not possible, you have options. If you set up a monthly payment plan with the IRS (called an installment agreement), the IRS will cut your failure to pay penalty in half.

What happens when you receive a collection letter from the IRS?

The notice informs taxpayers that a payment is due and that penalties and interest have been assessed and will continue to accrue until the balance is paid in full. Informs taxpayers that they have defaulted on their installment agreement.

What should you do if you get a letter from the IRS?

Every year the IRS mails letters or notices to taxpayers for many different reasons. Here are some do’s and don’ts for taxpayers who receive one: Don’t ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do.

What are the letters and notices from the IRS?

IRS Letters and Notices IRS Letter or Notice Number Notice Description CP10A Your tax return changed due to a miscalc CP11 You owe money because the IRS amended yo CP11A Your tax return changed due to a miscalc CP11M Your tax return changed due to a miscalc

How to get a copy of your IRS Notice?

To get a copy of your IRS notice or letter in Braille or large print, visit the Information About the Alternative Media Center page for more details. Why was I notified by the IRS? The IRS sends notices and letters for the following reasons: You have a balance due. You are due a larger or smaller refund. We have a question about your tax return.