How Can Back Taxes Affect You? The Complete Guide

Are you suffering from the issue of back taxes? Are you looking for a way out of it or in search of the right way to deal with it? This blog can help you out! It has become a crucial task to file back taxes in time to avoid tough circumstances. Back taxes can cause several different issues to an individual. If you are acquainted with the matter, you will be aware that none of these effects of back taxes are pleasant ones. Therefore, it is highly advisable to seek assistance from the right top tax defenders in your region at the earliest.


What would be the consequences of having back taxes?

Back taxes affect you in a multitude of ways. Given below is a list of significant consequences that you will have to deal with if you don’t file back tax timely. Also, there are a few tips to help you out. Keep reading to understand how these unfiled taxes can affect you and what you can do to prevent them.


IRS notices become a common occurrence

IRS sends plenty of notices regarding your tax bills at your doorstep. This might sound like a small nuisance initially. However, if you ignore these notices and don’t seek back tax help, they can cause massive trouble for you. That is, they will result in sever actions that will affect your personal as well as professional image.


IRS charges penalties

There is a penalty of 0.5 percent per month if you don’t pay your back tax. This penalty rate even doubles up to 1 percent if the IRS has sent multiple notices for tax collection already. Therefore, without having any tax relief experts by your side, these issues are going to be adverse. Thus, it is advisable to make a payment agreement with the IRS at the earliest to avoid severe penalties. Top tax defenders can help you out with this situation in the best way possible.


IRS puts you through the automated collection procedure

It is essential to file back taxes as the Automated Collection System (ACS) of the IRS is the next hurdle if you keep ignoring the notices they send you for collection. ACS is responsible for issuing liens and for levying your bank accounts as well as wages. ACS also starts sending multiple notices which state the consequences that you will have to deal with. At this point in time, only tax resolution services can come to rescue.


The IRS gets charge of your refund

If there is any tax refund which you are going to receive a year later and you have back taxes pending with the IRS, then IRS gets a refund. This happens irrespective of the fact whether you are in a payment agreement or not. If it is fine by you, then refund helps in reducing the back taxes that you owe to the IRS. Also, it helps in reducing your interest.


Seizing of your money and other assets

The IRS holds the right to take your money as well as assets if you don’t file back taxes properly. In most cases, it only seizes money, but there can be some exceptional cases. Therefore, it is always better to be safer and pay the taxes back timely itself.


You might not be able to initiate travel abroad

There are certain conditions for this consequence, but it can happen in a particular scenario. The State Dept. can put restrictions and not give you permission to travel abroad until you clear off the taxes that you owe to the IRS. This can be a great hassle for you.


Tips to help you in cases of back taxes

If you don’t file back taxes timely, there are serious issues that you will be creating for yourself. However, there are unavoidable or irreversible circumstances that happen at times, which result in back taxes. What do you do in such cases? Here are some tips to help you out:

  •       Always remember that ignoring the issue is not a solution to it. Even if you ignore the problem, the IRS won’t. Moreover, it will make the situation worse for you. So, be wise at your end in the first place as much as possible and handle it well.
  •       Be realistic and aware of your issues. The IRS does not forgive tax debts in the majority of the cases. Therefore, it is better to get in touch with the right tax relief experts to help you in tackling the issue wisely.
  •       Keep yourselves aware of the different tax laws that exist. This is vital as you need to ensure that you don’t simply land in a more significant issue without being aware of the proceedings.
  •       Lastly, make sure you hire only experienced and reputed tax resolution services provider for your back tax issues.


Do the right thing. Understand the seriousness of these consequences and make decisions related to taxes wisely. Also, keep the tips provided here in mind to deal with back taxes more smartly. If you have the assistance of the right professionals, you will be able to manage it in a better way.


About Platinum Tax Defenders

Platinum Tax Defenders is undoubtedly one of the finest tax resolution services in Los Angeles since its establishment in the year 2011. The professionals at the firm have proper qualifications as well as great experience in handling the matters that relate to back taxes. Therefore, all those who are looking for any type of back tax help or other tax help can book an appointment with an expert at the company. The tax relief experts at Platinum Tax Defenders have the dedication that customers seek and, thus, can help with settling back taxes properly. The huge clientele of the firm is proof that it is a reputable name in the industry. If you wish to get rid of the issues like wage garnishment, bank account levies, or property liens, hire Platinum Tax Defenders to help you out. Make the right choice; get in touch with the expert today!

    free consultation


    Tax Problem
    How Much Do You Owe in Past Tax?
    Additional Info
    Actual Client Results
    Client IDOwedSettlement
    Recent Savings: $1,012,060
    how can we help you?

    Contact us at the Platinum Tax Defenders 

    I received a letter from the IRS and it says that I didn’t file my taxes. In order to get some assistance, I found Platinum Tax Defenders! The staff took time on the phone with me to really understand my situation also my needs. The staff was friendly and helpful. I highly recommend Platinum Tax Defenders!!!

    Martha B
    Tax Relief,