What are Back Taxes?

The term "Back Taxes" refer to tax debt that wasn't paid when it was due. Typically, these are taxes that are owed from a previous year. You might owe back taxes if you were unable to pay on time, or if you failed to file your tax return on time and had tax liability that you owed.

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How do I prevent Back Taxes from building up?

By filing your taxes on time and paying your tax obligation in full, you will prevent Back Taxes from accruing. If you haven't filed a tax return, it is better to file it than wait to see if the IRS will find out, even if you know you can't pay your tax debt.

There are options for people who cannot afford to pay their tax debt in full. However, there are harsh penalties for failing to file. For example, the IRS can file your taxes for you if you haven't done so on your own which can eliminate your ability to claim deductions and thereby reduce your tax liability.

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What happens if I have Back Taxes?

You will be required to pay your tax obligation, but there are options that could reduce the amount you owe. If you have back taxes as a result of unfiled tax returns, you should consult a tax professional and file your return as soon as possible.

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What if I'm not Sure What to do?

USTR recommends that businesses and individuals facing Back Taxes consult a quality tax professional as soon as possible. The IRS has strict penalties for those who delay.

Many tax professionals provide a free consultation, which can inform you of the rights and options you have as a taxpayer facing back taxes. In many cases, you can save thousands of dollars or more by resolving your tax debt with the help of a pro.

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How do I Know if I Should Contact a Tax Professional?

USTR believes that contacting a tax resolution professional is common sense. When you have a medical problem, you contact a doctor. When you have a car problem, you contact a mechanic. When you have a tax problem, you should contact a tax professional. Many tax professionals provide a FREE consultation and USTR can connect you with some of the best tax professionals in the country.

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