Simply put, back taxes are taxes that an individual fails to pay or pay completely when they are due. They can even be from a previous year and can be owed at either federal, local, or state levels.
You may find yourself in a significant amount of tax debt with the IRS because of your unsettled back taxes, and what’s worse is that back taxes accumulate interest and penalties on a regular basis If they are left unpaid. The IRS estimates that billions of dollars in back taxes are left unpaid every year; this is bad news for both the IRS and the taxpayer.
Another great disadvantage about owing the IRS money in back taxes is that the amount continues to accumulate, and it can easily get overwhelming within a short period of time. Dealing with the IRS is also no easy task, and negotiations can often get confusing and even downright intimidating to an inexperienced taxpayer who owes the IRS money in back taxes. This is where we step in.
We provide individuals and corporate entities with the necessary tools, resources, and support they need to settle their back taxes. Our timely intervention helps prevent the IRS from taking collection actions against you and helps you take back control of your life and taxes.
Common consequences for not paying your back taxes include:
- Wage Garnishments
- Loss of property
- Bank Levies
- Daily increments in interest rates
- Increased fines and penalties
If you do not settle your back taxes, the IRS charges a daily interest rate on your debt, set for every three months. They are also within the authority to confiscate your property and garnish your paycheck. Speak to a qualified tax relief attorney now before the IRS takes such drastic actions against you.
For how long can the IRS collect back taxes?
According to taxation laws, the IRS does have a limited amount of time to collect unpaid back taxes an individual may owe. This Period of time is what is known as a statute of limitations, and for collection of unpaid taxes, the statute of limitations is 10 years.
After 10 years, the IRS will no longer be legally able to take collection actions against you for the amount you owe in back taxes, and the clock begins to tick when the IRS initially determines how much you owe in back taxes. The IRS can, however, increase the statute of limitations on unpaid back taxes by denying your Offer in Compromise request.
How much do I owe in Back Taxes?
If you are unsure of how much you owe in back taxes, we can help you too. We will launch an inquiry with the IRS on your behalf to determine what you owe, and find effective methods to help you get relief from the debt. This inquiry will evaluate what times you defaulted on the payment of your back taxes, and halt further collection actions that may be taken against you by the IRS. During this time, we will determine what tax returns you need to file and file then on your behalf.
Our team will analyze your particular situation to evaluate your options, and determine which is the best tax resolution method for you. Call us today to get access to our team of qualified tax attorneys.
How can we help?
We are a qualified tax relief agency that can provide you with all the help you need to successfully settle your tax problems. Negotiating with the IRS involves many legalities and complications; therefore, it is inadvisable to try to do this on your own. We are happy to represent you and provide you with effective options for the resolution of your tax debt. Call us now to schedule a free consultation.