How Owing Back Taxes Could Mean Bad News
Firing an employee to avoid handling a levy can be a criminal offense, which is punishable with a fine of up to $1,000 and possible imprisonment for up to a year for any employer who willfully fires any employee in connection with the garnishment for their earnings. You will find that owing back taxes is one part of the law that the IRS takes very seriously, and that they will pursue both you and your employer until they get structured payments in place that will work toward that debt.
When you owe back taxes you may also feel that you have very few options, but the truth could be much more different than what you have been led to believe. The Constitution authorized that the government be able to collect taxes, but also that some taxes be given to states based on their population. That means owing back taxes could also mean you owe taxes to the state as well, which could have different laws and punishments based on the amount and the state to which you owe IRS back taxes. It is important to first assess the nature of the taxes themselves when you owe back taxes to irs, because the method for resolving the situation could be much different depending on those circumstances. You will find that owing back taxes can put you in a difficult situation in many cases, because it opens you up to the possible punishment of wage garnishment, levies put against your home or business, and more.
If you owe IRS money and are not sure what to do next, then look for professional help with the matter. The first federal income tax was added as part of the Revenue Act of 1861, as a way to increase revenue for the government. Since then, owing back taxes has become increasingly more hazardous for those that find themselves on the wrong side of the IRS. The easiest form of tax return, the 1040EZ, still has 33 pages of instructions. Taxes can be difficult and time consuming. If you owe IRS taxes, or owe irs back taxes from several years ago, then you need help that is proven to be effective. E File, which was made available in every state in 1990, is one way doing taxes has become easier, but owing back taxes still has its difficulties, as do its possible solutions.