Americans have always been tough and courageous. The world’s longest running current democracy has survived crises and perils in its relatively short history. The question of taxes has been a constant bone of contention. Though some residents claim that income taxes are unconstitutional, the fact is that the Sixteenth Amendment gave the U.S. Congress the legal right and authority to levy federal income taxes. So, the answer to our first question is yes. Yes, the government has the right to ask its citizens to pay income taxes.
What are back taxes?
More than twenty million Americans have fallen behind on their taxes. That is an astonishing statistic that is not likely to improve anytime soon. Tax debt has become as American as apple pie and citizens are ignoring IRS letters more than ever. The reason for this is simple. Americans are afraid of the IRS, especially if they can’t afford to pay what they IRS says they owe. Over the years, the powerful federal agency has gained a reputation for overriding obstinance. Stories abound of IRS agents refusing to deal squarely with people who owe them money. The popular notion is that the IRS would rather harass and intimidate taxpayers in a typically futile attempt to collect every penny.
When the IRS comes knocking, it is important to answer the door. The single most helpful piece of advice we can offer is that tax debt never gets better or goes away. It only ever gets worse. The IRS is like an annoying relative that will never forget the slightest insult or affront. When a taxpayer is in hoc to the IRS, the agency will come calling sooner or later. To make matters worse, tax debts always grow when they are ignored. Fines, penalties, and interest are added to back taxes when the IRS finally identifies a suspected tax debtor.
No matter the amount of the debt, tax advisors can help. Not only will they communicate directly with the IRS, but they will attempt to negotiate a favorable tax settlement. These arrangements almost always include a payment plan for taxes that will allow a taxpayer to handle his bill with monthly installments.
Tags: Back Taxes, payment plan for taxes, sixteenth amendment, tax advisors, tax debt, tax settlement