Back Taxes Tips: Filing Late Tax Returns

Last updated on July 19, 2022

The IRS isn’t flexible when it comes to filing taxes late. The IRS assesses penalties to taxpayer who files their taxes late in order to discourage non-compliance. After the filing deadline, any amount of back taxes that remains to be paid are charged penalties and interest. The amount of penalties and interest depends upon the amount of tax debt and the duration of non-payment.

If taxpayers are unable to pay the full amount of taxes owed before the filing deadline, they should pay as much as they can to reduce the overall amount. This will reduce the penalties and interest charged on the back tax amount. To further lower their tax liability, taxpayers can use the help of a tax service to minimize or remove IRS penalties.

The IRS accepts a reduction or forgiveness of penalties only if it finds the cause of non-payment reasonable. If taxpayers are looking for a resolution that involves a reduction of their tax debt or penalties, it is advisable they seek a tax professional’s assistance.

Late-filing can be resolved easily and without paying much in penalties and interest if efforts for the resolution are made early. For a speedy and favorable resolution, hiring a competent tax service specializing in back taxes resolution is a smart choice.