Back taxes are essentially taxes that are due but haven’t been paid. There are various reasons why you may owe back taxes. You may not have had enough money withheld from your paychecks or failed to report capital gains. Maybe you neglected to file previous tax returns and the IRS filed a substitute for return (SFR) on your behalf, resulting in a tax bill. Whatever the reason, dealing with back taxes can be a heavy burden to carry.
What Happens If I Don’t Pay My Back Taxes?
If you are unable to pay your back taxes, ignoring the IRS will only make things worse. Penalties and interest fees add up quickly. This can make your tax balance grow to an overwhelming amount in a short time. After a while, the IRS will take aggressive action to collect on the debt. This may include garnishing your wages, seizing your bank accounts (bank levy), and/or placing liens on your property. If you’re due a tax refund in the future, don’t be surprised if the IRS takes it to pay toward your existing tax bill. This is known as tax offset.
Get Back Taxes Help
The best way to deal with back taxes is to pay your tax debt in full. Of course, if you had that kind of money to begin with you wouldn’t be in this situation. Thankfully, Tax Assistance Group offers various tax relief services to help you get out of trouble.
- Unfiled Tax Returns – Do you owe back taxes because you failed to file one or more tax returns? We can help you get caught up and find an affordable solution for paying off your outstanding tax debt.
- Installment Agreement – With an IRS installment agreement, you can pay your back taxes off over time and avoid collection actions.
- Offer in Compromise – Depending on your financial situation, we may be able to settle your tax debt for less than you currently owe.
- Currently Not Collectible (CNC) – If you’re facing extreme financial hardship, the IRS may place you in a CNC status. You won’t be required to make any payments and collect actions will cease.
At Tax Assistance Group, we’ll work with you to find an affordable solution to address your back taxes and keep the IRS at bay. If you’re tired of struggling with tax debt, give us a call and explore your options.