State and IRS back taxes cause a variety of problems every year.

Typically, problems with back taxes arise from not paying the total amount of taxes owed on your federal and/or state returns. Also, problems with back taxes can arise from not filing taxes and the IRS finds out about it. Once the IRS or state determines that you do indeed owe more money to the government then in will proceed to take actions against you. Below is a list of problems/actions the government and state takes against individuals. Items are somewhat in order of how the IRS proceeds to take action.

Read about the problem below to see which match your situation:

• Can't Pay or Have Unpaid IRS Back Taxes
  If you have unpaid back taxes and the IRS or state has not yet taken action against you. Find out what you can likely expect next and what actions you should take now to prevent future issues from arising.
  
  
• Received an Assessment for Back Taxes with Interest and Penalties or CP Letters
  Typically, once the IRS realizes you have unpaid back taxes it will start sending you letters. The letters start with an initial assessment for back taxes and then you receive four more letters before the IRS takes action.
  
  
• Tax Lien
  This is the first major collection action the IRS taxes against individuals to ensure collection of back taxes. A Tax Lien gives the IRS a legal claim to your property as security or payment for your tax debt. It is used in order to protect the government's interest in your assets.
  
  
• Tax Levy
  This is the most powerful weapon that the IRS has. The IRS will send out a 30 day notice of its intent to levy and then it will begin to seize assets until all tax liabilities have been recovered. The IRS can take your house, wages, savings, 401K, and any many other assets that it can liquidate.
  
  
• Unfiled Returns
  Unfiled returns can lead to harsh collection action from the IRS. With the efficiency of the IRS computers today, it is highly unlikely that the IRS will not recognize that the return was not filed, it make take up to a year or more for the IRS to finally contact you, but you can be assured that they will be contacting you. Understand what unfiled tax returns entails you can can appropriately get the right help to file your back taxes.
  
  
• IRS Audit
  An audit is the process in which the IRS determines if you have properly reported all income and took the correct deductions. It is your responsibility to prove to the IRS that what you filed was indeed correct and you must provide supporting documents for the majority of it.


• Small Business Tax Problems
  Small business having problems with the IRS is more common than most people think. These are the most common small buisness tax problems. It is important for all small business owners to be aware of them to avoid running into the IRS since the IRS can crush just about any small business.


• Death and Tax Debt Owed
  Tax Debt can become an issue of the family after the debor passes. Most of the time tax debt will not be required to be paid by the faimily, however, there are some exceptions to this rule.

Paying Back Taxes
General guidelines to help you save time and money by following steps in your quest to resolve back taxes.

Back Taxes Solutions
Settle IRS back taxes for a fraction of what is owed if you can prove you meet strict IRS specifications.

File Back Taxes
Setting up a payment plan with the IRS can sometimes be the easiest solution to dealing with back taxes. See what payment plan fits your situation the best..

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