Non-Payment of Back Taxes & Its Resolution

Last updated on February 14, 2022

The non-payment of back taxes can lead to trouble. In many cases the IRS discovers the tax debt, but by then the amount of tax debt has grown because of interest, and becomes difficult to pay in full. That is why early resolution of back taxes is beneficial.

The IRS recently discovered that Don Marsh, of Marsh Supermarkets, owes $518,892 in federal taxes. According to the IRS, Marsh’s tax debt stems from changes to the tax law that requires Marsh to include his wife’s trip expenses as additional income. Marsh and his wife flew to various destinations worldwide, which were not recorded as pleasure tips, but business travel. This was not an isolated instance and the IRS began to notice.

Taxpayers must avoid getting into such a situation. Back tax resolutions are simple if there is a will to resolve the debt. The IRS has many payment plans accommodating different kinds of financial conditions of taxpayers. The choice for taxpayers is between continued non-payment of back taxes and the resolution of back taxes.

Taxpayers should look for a resolution of back taxes as because the IRS can at anytime discover the debt and place collection actions against a taxpayer to recover it. The collection actions can be lien or levy, but timely payments can not only free a taxpayer from tax debt, but also save them money on interest. The choice rests with taxpayers.