Back taxes are tax debt

On Behalf of | Jan 19, 2018 | Back Taxes or Tax Debt

Numerous individuals in Connecticut and elsewhere have tax debt. It happens. Sometimes, paying the IRS is difficult when one is struggling financially. People pay what they can, but if they do not pay in full, they are said to owe back taxes. It is tax debt that the government can still try to collect.

How long can the IRS pursue back taxes? Believe it or not, the IRS can go after a person for a decade’s worth of back taxes. If one does not come to terms with tax collectors, the IRS may collect by:

  • Wage garnishment
  • Intercepting tax refunds
  • Imposing fines and penalties

Before things go that far, the IRS does offer several ways to help tax payers meet their debt obligations. Installment agreements may be possible. Some may even be able to work out an Offer in Compromise. This means that the IRS will agree to accept a lesser amount from the debtor.

The best thing anyone can do is tackle large tax bills head-on before tax debt becomes an issue. Those in Connecticut who have waited and now find themselves owing back taxes can still take swift action to correct the issue as quickly as possible. An experienced tax attorney can review one’s situation and help one work with the IRS to come to terms that are agreeable for both parties. By seeking help with this type of problem, one can get taxes paid or settled, remove the financial burden of owing back taxes and get the fresh start he or she desires.

Source: FindLaw, “What Are Back Taxes?“, Accessed on Jan. 18, 2018