Back taxes are unpaid taxes from previous years. If you owe back taxes, you may be worried about the consequences, such as penalties and interest charges, wage garnishment, or even seizure of your assets. But with the help of Tax Law Advocates, you can resolve your back tax issues and get back on track.
In this article, we’ll cover what back taxes are, whether the IRS can forgive them, and how many years you can file back taxes. We’ll also discuss how Tax Law Advocates can help you settle your back tax debt.
What are Back Taxes?
Back taxes are taxes that you owe from previous years. If you didn’t pay your taxes in full and on time, you may owe back taxes to the IRS or state tax authorities. Back taxes can include federal income tax, state income tax, self-employment tax, or any other type of tax that you’re required to pay.
If you owe back taxes, you’ll receive a notice from the IRS or state tax authority. The notice will inform you of the amount you owe, the tax year(s) in question, and any penalties and interest charges that have been added to your tax debt.
Can the IRS Forgive Back Taxes?
The IRS does have options for forgiving or reducing back taxes, but it depends on your unique situation. One option is the Offer in Compromise program, which allows you to settle your tax debt for less than the full amount you owe. To be eligible for the Offer in Compromise program, you’ll need to prove that paying your full tax debt would create a financial hardship for you.
Another option is to apply for penalty abatement, which can reduce or eliminate penalties and interest charges that have been added to your back tax debt. To qualify for penalty abatement, you’ll need to show that your failure to pay your taxes on time was due to reasonable cause and not willful neglect.
It’s important to note that the IRS doesn’t forgive back taxes automatically, and you’ll need to take action to resolve your tax debt. The longer you wait, the more penalties and interest charges will be added to your debt, making it harder to pay off.
How Many Years Can You File Back Taxes?
You’re required to file a tax return for each year that you earned income, even if you didn’t pay any taxes. If you didn’t file a tax return for a previous year, you can still file it and pay any taxes you owe. However, if you don’t file a tax return, the IRS can file one for you based on the information they have, which may result in a higher tax bill.
The IRS has a statute of limitations on how far back they can go to collect back taxes. Generally, the statute of limitations is ten years from the date that the tax was assessed. This means that if you owe back taxes from ten or more years ago, the IRS can’t collect the debt anymore.
However, if you haven’t filed a tax return for a specific year, the statute of limitations doesn’t begin until a return is filed. This means that the IRS can collect back taxes for any year that you didn’t file a tax return.
How Tax Law Advocates Can Help with Back Taxes
If you owe back taxes, the team at Tax Law Advocates can help you resolve your tax debt and avoid the consequences of unpaid taxes. We offer a range of tax relief services that can help you settle your back tax debt, including:
Offer in Compromise: We’ll work with you to determine if you’re eligible for the Offer in Compromise program and help you prepare and submit your offer to the IRS. This program allows taxpayers to settle their tax debt for less than the full amount owed, based on their ability to pay.
Installment Agreements: If you’re unable to pay your back taxes in full, an installment agreement may be an option. This allows you to make smaller, more manageable payments over time, rather than in one lump sum. Our team of experts will work with you to negotiate an installment agreement with the IRS that fits your budget.
Penalty Abatement: If you’ve been hit with penalties and interest charges from the IRS, Tax Law Advocates can help. Our penalty abatement services are designed to help you reduce or eliminate these penalties, so you can get back on track and avoid further financial strain.
Innocent Spouse Relief: If you’re dealing with tax issues related to your spouse or ex-spouse, innocent spouse relief may be an option for you. Innocent spouse relief allows you to avoid paying taxes that your spouse or ex-spouse owes if you can prove that you had no knowledge of the tax issue.
Tax Audit Defense: If you’re facing a tax audit, our team of experts can help you navigate the process and negotiate with the IRS on your behalf. We’ll work with you to prepare for the audit and ensure that everything is in order to minimize the chances of additional taxes, interest, and penalties.
Contact Tax Law Advocates To Get Help
At Tax Law Advocates, we understand the stress and anxiety that comes with owing back taxes. That’s why we’re here to help you every step of the way. We’ll work with you to develop a personalized plan that fits your unique situation, and we’ll advocate for your best interests with the IRS.
In addition to our tax relief services, we also offer tax planning and preparation services. Our team of experts can help you stay on top of your tax obligations to avoid future issues with the IRS. We’ll work with you to develop a plan that ensures compliance with all tax laws and regulations while minimizing your tax liability.
Don’t let back taxes ruin your financial future. Contact Tax Law Advocates today at 855-612-7777 to schedule a consultation with one of our tax relief experts. We’ll help you understand your options and develop a plan that puts you on the path to financial stability.
