| Collecting back taxes are one of the greatest points | | | | found that the taxpayer was purposefully evading, or |
| of consternation for those who work at the IRS. Most | | | | repeatedly having "little errors" on their annual report |
| people rarely ever end up in a situation where any | | | | then the IRS will look deeper into the taxpayers past |
| backup taxes are ever owed, but amongst those | | | | income tax claims as well. Most taxpayers request the |
| individuals with which it happens they tend to come | | | | services of a good tax attorney at this point. In the |
| from one of three situations. | | | | case of legal matters and attorneys, it is always better |
| The first situation that a cause back owed taxes, and | | | | to have one and not need them than to need them |
| is actually most common, is whenever income taxes | | | | and not have them. |
| are calculated and owed, the taxpayer simply does | | | | The third category that many taxpayers are aware of |
| not have the funds to pay them at that point. More | | | | is when a person does not file an income tax return at |
| often than not, the IRS will process the return and will | | | | all then the IRS may file a "Substitute for Returns." This |
| generally work out some form of a payment | | | | substitute is usually calculated at a higher value than if |
| arrangement. If a payment arrangement is set up with | | | | the taxpayer had at least filed their own. These back |
| the IRS and then not kept, severe penalties can result. | | | | taxes, if unpaid, can accumulate, and grow to a |
| Once a payment arrangement goes into default, and | | | | burdensome figure. All of this happens before the |
| the larger the aback amount owed is, the less | | | | penalties and interest is even applied. In situations such |
| amicable IRS will be in making any further payment | | | | as these, again, a reputable tax attorney would be |
| arrangements. In addition, more often then not, interest | | | | most helpful. Most income tax attorneys are actually |
| will be added to the back owed IRS income tax. | | | | former employees of the IRS and can often negotiate |
| The second category of taxpayers suffering from | | | | a reasonable agreement in regards to your back tax |
| backup IRS income tax is those individuals who have | | | | returns. |
| processed and even paid an income tax return but | | | | All three of these describe backup income tax |
| failed to report all their accountable income. Usually the | | | | obligation situations that could be easily prevented by |
| IRS will catch this during audits and inform the | | | | simply filing early and honestly, even on years that you |
| taxpayer. If it is a genuine mistake, or error, then most | | | | think nothing is owed. You are always better off |
| taxpayers get a generous window within which to | | | | working within the system then ever trying to beat it. |
| repay their back obligation to the IRS. However, if it is | | | | |