The Importance of Filing Past Due Taxes

Back taxes are unpaid taxes in the year that they were due. It can be a serious issue for many taxpayers who have no means of paying them. The IRS has turned over the collection of back taxes to private collection agencies recently. This means that the government is serious about going after those who do not pay their taxes right and on time.

Image source: flickr.com
Image source: flickr.com

Having tax debt can be a source of stress for individuals, especially if they cannot afford to pay the tax they are due. Aside from the back tax, they are required to pay they are also charged with interest and penalties.

Those who are applying for loans are at a disadvantage if they have back tax. The approval of loans for higher education, mortgage, or business will be delayed because these taxpayers have to settle their taxes first. Social Security benefits can also be at risk if people do not pay their taxes right. Those who have back taxes may not get their disability or retirement benefits. Freelancers and self-employed individuals are more vulnerable to creating back tax liability because they usually self-account for all their gains and expenses.

Image source: financialtribune.com
Image source: financialtribune.com

IRS tax debt can be horrifying for many, but help is available. Choose Tax Tiger’s professional team for issues regarding back tax. Visit this Facebook page for more information.

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