20 Oct The Tax Resolution Alphabet – B is for Back Taxes
Owe Money to the IRS? It’s Called Back Taxes
Back taxes refer to taxes owed from a prior year.
A taxpayer may be behind in paying taxes for intentional or negligent reasons. Some of these reasons include – filing a return and failing to pay the tax liability; failing to report all income earned during the tax year, and; neglecting to file a tax return for a given tax year.
If taxes remain unpaid after multiple notices have been sent by the Internal Revenue Service (IRS), a minimum penalty fee of $135 will be charged in addition to interest on the unpaid amount, which is 0.5% per month that the taxpayer is late, up to 25%. As the total tax debt increases each month due to penalty and interest, over time, it can grow into a significant amount.
Do you have FOF, fear of filing? We can file all of your deinquent returns and help you with the penalties and interest. Contact our firm here for an evaluation of your situation. Visit our website, sfstaxproblemsolutions.com to book your Free Debt Settlement Analysis at https://go.oncehub.com/jeffreyschneider.
Unpaid back taxes can be a serious issue for many taxpayers who don’t have the means to pay them. Depending upon the circumstances, the government may take one of many strategies to deal with back taxes, such as pressing charges, demanding that that the taxpayer pay immediately, or sometimes offering a voluntary disclosure program which helps avoid criminal charges and allows a variety of payment options. Failure to pay taxes can also involve imprisonment.
In some cases, the IRS will seize property, seize assets, or place liens on property. The IRS may place a federal tax lien to inform other creditors of the taxing authorities legal right to a taxpayer’s assets and property. The IRS also has the power to garnish a taxpayer’s wages and to levy their financial accounts, seizing up to the total amount of taxes owed. If the taxes remain unpaid, the tax authority can use a tax levy to legally seize the taxpayer’s assets (such as bank accounts, investment accounts, automobiles, and real property) in order to collect the money, it is owed. While a lien secures the government’s interest or claim in an individual’s or business’ property when the tax debt remains unpaid, a levy actually permits the government to seize and sell the property in order to pay the tax debt.
In difficult times, many families have trouble meeting their commitments. If you’re worried about the IRS garnishing your wages, levying your bank account, or taking your home, then reaching out to our firm and getting a free, no-obligation, confidential consultation on your tax problem may give you some peace of mind. Jeffrey Schneider, EA, CTRS is a tax expert and can work with you to file your back taxes and get you tax compliant. He may even be able to abate the penalties. Now that is peace of mind! Contact us now. Visit our website, sfstaxproblemsolutions.com to book your Free Debt Settlement Analysis at https://go.oncehub.com/jeffreyschneider.