IRS Legal Counsel Blog

Back taxes two simple words but can break us into pieces. The IRS back taxes can hit a nerve because we can end up being a delinquent tax payer. But with all the publicity about the IRS tax taxes it can be quiet challenging to be aware what back taxes is especially if you find you have unresolved back taxes that the Internal Revenue Service are now collecting.
Generally, if you have back taxes, you don’t need to get panic or confuse by it, you must have a little bit of awareness on how to get away from all of this. You must understand that having back taxes that you forgotten to resolve you must familiarize yourself about the penalties, interest as well how you can be able to resolve it.

Whether you unintentionally forgot to file your taxes last year or year before or made mistakes on your form while doing your own taxes chances are whether this two reasons end you having a back taxes to the Internal Revenue Service.

First of all, interest is being added from your back taxes especially if filed late or forgot to file your taxes. Even though you have valid reason on why you filed late or did not file the Internal Revenue Service will still add interest into your outstanding balance and this will go on until you pay all your back taxes.

Secondly, beside the interest, penalties are also been added to your back taxes. Why? Because of filing late or not filed at all, penalties of 4% to 100% are being added depends on how willing you are in resolving your back taxes.

Remember that if you do not make the first step in resolving your back taxes it will be more difficult for you because the Internal Revenue Service will never stop in demanding your payment or they can take some steps in order to get the money from you and you do not want that to happen. By taking steps such as wage garnishment, bank levy or tax lien which means they can control your salary, your bank account or your properties. Once this happen, you will be so stress out because you do not have any money left or your properties will be seize by the Internal Revenue Service.

Good news is you can resolve your back taxes with the help of tax relief such as offer in compromise, instalment agreement and penalty abatement. Having a tax relief to help you in resolving your back taxes you can avoid paying huge penalties and interest. To have unresolved back taxes doesn’t mean it the end of your world because with the help of your tax attorney and your CPA it will be resolve in no time.