Back taxes occur when a person owes taxes from a previous period but does not pay them or is not able to pay them when they fall due.
In the same context, underpaying your tax obligations will result in a back tax situation.
Even if a person accidentally fails to report taxable income, the IRS has the right to demand immediate payment of back taxes.
They result in no tax relief, as they come together with interest, fines and penalties.
There are a variety of reasons why a US taxpayer fails to file a tax return.
It could be that some intend to file at a later date and forget.
However, for many, it is the simple fact that there is a lack of funds available to meet the balance due on their tax returns.
Ignoring the filing of a tax return will afford the US taxpayer no tax relief and, in these circumstances, it is important to urge you consult with a tax professional before matters become out of hand.
Back taxes are the words most often used in reference to federal income tax; and, there are an amazing number of people in the US who fail to file tax returns for one, or even many, years.
Some people even owe back taxes for decades at a time.
Unfortunately, these taxes do have a way of catching up with you.
Owing back taxes does not have to end in disaster or, even worse, criminal prosecution.
Taking the bull by the horns and confronting the problem will ensure some tax relief and by consulting with a professional you will find that the best repayment deal possible can be negotiated for you.
In the same context, underpaying your tax obligations will result in a back tax situation.
Even if a person accidentally fails to report taxable income, the IRS has the right to demand immediate payment of back taxes.
They result in no tax relief, as they come together with interest, fines and penalties.
There are a variety of reasons why a US taxpayer fails to file a tax return.
It could be that some intend to file at a later date and forget.
However, for many, it is the simple fact that there is a lack of funds available to meet the balance due on their tax returns.
Ignoring the filing of a tax return will afford the US taxpayer no tax relief and, in these circumstances, it is important to urge you consult with a tax professional before matters become out of hand.
Back taxes are the words most often used in reference to federal income tax; and, there are an amazing number of people in the US who fail to file tax returns for one, or even many, years.
Some people even owe back taxes for decades at a time.
Unfortunately, these taxes do have a way of catching up with you.
Owing back taxes does not have to end in disaster or, even worse, criminal prosecution.
Taking the bull by the horns and confronting the problem will ensure some tax relief and by consulting with a professional you will find that the best repayment deal possible can be negotiated for you.
Source...