Back taxes are unpaid taxes from previous years. If you owe back taxes, you may be worried about penalties, interest charges, wage garnishment, or even asset seizure.
With help from Tax Law Advocates, you can resolve your back tax issues and regain financial stability.
In this article, we explain what back taxes are, whether the IRS can forgive them, how many years you can file back taxes, and how our team can help.
What Are Back Taxes?
Back taxes are unpaid federal or state taxes from previous years. They may include:
- Federal income tax
- State income tax
- Self-employment tax
- Other required taxes
If you owe back taxes, the IRS or state authority will send you a notice. The notice outlines the amount owed, the years in question, and any added penalties or interest.
Can the IRS Forgive Back Taxes?
The IRS does have programs to reduce or forgive back taxes, but eligibility depends on your financial situation.
- Offer in Compromise (OIC): Allows you to settle for less than you owe if paying in full creates financial hardship.
- Penalty Abatement: May reduce or remove penalties and interest if you can show reasonable cause, not willful neglect.
The IRS will not forgive debt automatically. You must take action to resolve your back taxes. Waiting only increases penalties and interest, making it harder to pay off.
How Many Years Can You File Back Taxes?
You must file a tax return for every year you earned income, even if no tax was due.
- If you never file, the IRS may file a substitute return for you. This usually results in a higher bill because it excludes deductions and credits.
- The IRS generally has 10 years from the date of assessment to collect back taxes.
- If no return is filed, the 10-year statute of limitations does not begin. The IRS can pursue the debt indefinitely.
How Tax Law Advocates Can Help With Back Taxes
If you owe back taxes, our team offers a range of tax relief solutions tailored to your situation:
- Offer in Compromise: We determine eligibility, prepare, and submit offers so you may settle for less than the full balance.
- Installment Agreements: We negotiate affordable monthly payments with the IRS, helping you avoid a lump sum payment.
- Penalty Abatement: We work to reduce or eliminate penalties and interest to ease your financial strain.
- Innocent Spouse Relief: We help you avoid liability for taxes owed by a spouse or ex-spouse if you had no knowledge of the issue.
- Tax Audit Defense: If you face an audit, we represent you, prepare documentation, and negotiate to minimise additional liabilities.
Contact Tax Law Advocates to Get Help
At Tax Law Advocates, we understand the stress of owing back taxes. Our team develops personalized plans, advocates with the IRS, and provides ongoing tax planning to prevent future problems.
We also offer preparation services to ensure compliance and minimize future tax liability.
Don’t let back taxes ruin your financial future. Call 855-612-7777 today to schedule a consultation with one of our tax relief experts.
