Collecting back taxes are simply one of the greatest points of anxiety for people who work at the IRS. Most of the people rarely wind up in a situation where any backup taxes are ever owed. The initial situation that the cause back-owed taxes, is whenever income taxes are calculated and owed, the citizen merely does not have the funds to cover them at that point. More often than not, the IRS will process the return and will normally work out some form of the payment arrangement. Whether a payment arrangement is set up with the IRS then not stored, severe penalties can result. Once a payment arrangement goes into default, and the larger the sum owed is, the less amicable IRS will soon be in making any further payment agreements. Furthermore, interest will likely be added to the back-owed IRS income-tax.
The second type of taxpayers suffering from backup IRS income tax is those individuals that have processed and even paid an income tax return but failed to report all their accounted income. Usually the Internal Revenue Service will notify the citizen and find this during audits. When it is a true mistake, or error, then most citizens receive a generous window within which to reimburse their back duty to the IRS. But when it is found that the citizen was purposefully evading, or repeatedly having “little problems” on their annual report then the IRS will look deeper to the taxpayers past income-tax claims at the same time. Most citizens request the tax attorney to help with back taxes. In the instance of legal issues and attorneys, it is usually better to have one and not need them than to need them and not have them.