Back Taxes

Back taxes are commonly referred to as tax debt. They are actually unpaid amount of taxes that has been assessed against a person (taxpayer) by the Government. The IRS tax debt refers to the federal income taxes that are outstanding. These taxes are assessed when a taxpayer does not file their tax return, or when they do not make payment for the taxes that are due. Generally, back taxes can be referred to as the taxes that taxpayers owe to the Government from the previous years. Most of the time, the balance due will include penalties and interest because they were not paid when they were due.

If you have back taxes then I would advise you to make sure that you resolve these issues as soon as possible. Do not delay, because if you do not resolve them as soon as possible, you are likely to suffer liens and levies on your assets, as well as other consequences.

Reasons Why Back Taxes Accumulate
 

• The taxpayer may not have known that he owe taxes to the IRS.
• The tax payer may have received wrong information.
• There are some people who try to evade taxes.
• There are also some people who do not file tax returns.

How Can You Resolve Back Taxes?

The easiest and the quickest way to resolve the back taxes is to file and pay your taxes when they are due.  If you file and/or pay late, you need to pay the tax amount that is due, along with the penalties and interest that has been charged. If you take time to pay the amount, the interest and penalties will continue to accrue and you will end up paying a huge amount. You can also apply to have penalties removed. See the "free advice' tab on this site for more information.

When can I request a payment plan from the IRS?

You can generally request for a payment plan from the IRS, if you can not pay the back taxes in full. This usually happens when the amount that you owe to the IRS, in the form of back taxes, is large enough that you are unable to pay in full.  Before you request a payment plan, you should first calculate how much money you will be able to pay to the IRS every month. Please see the "free advice" tab on this site for details on what you must do before contacting the IRS. 
 

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