Back Taxes

BACK TAXES

Back taxes with the IRS refer to unpaid federal taxes, penalties, and interest that you owe to the Internal Revenue Service (IRS). These taxes can arise from various situations, including

  • Failing to file tax returns: This is the most common reason for back taxes. If you haven't filed your tax returns for one or more years, you'll owe the tax due, plus penalties and interest that accrue on the unpaid amount.
  • Underpaying taxes: If you didn't withhold or estimate enough taxes throughout the year, you'll end up owing the difference when you file your return.
  • Errors on your tax return: Mistakes in claiming deductions, credits, or income can lead to an underpayment of taxes.
  • Unreported income: If you have income that you haven't reported on your tax return, you'll owe taxes on that income, plus penalties and interest.

Dealing with Back Taxes Can Be Stressful and Complex.

The IRS charges penalties and interest on unpaid taxes, which can significantly increase your total tax liability. Additionally, the IRS can take various collection actions if you don't address your back taxes, such as:

  • Wage garnishment: The IRS can take a portion of your wages directly from your paycheck to pay your tax debt.
  • Bank levies: The IRS can freeze and seize funds in your bank accounts.
  • Property liens: The IRS can place a lien on your property, which makes it difficult to sell or refinance your home.

If you're facing back taxes, it's crucial to seek professional help from a tax attorney. Contact us today for a confidential consultation. We can help you understand your options, negotiate with the IRS on your behalf, and develop a plan to resolve your tax debt.

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