The Problems of Back Taxes

In order to fix back taxes, you would seek to contact the relevant tax authorities and create a plan to pay the taxes. If you cannot afford to pay the taxes, then you may want to contact a professional tax advisor who may be able to negotiate a smaller amount to be paid.

Realize that any amount that the IRS would decide to forgive is based upon your assets and your ability to make monthly payments, among other factors.

If you owe back taxes to the IRS, you should ideally communicate either directly or with an "enrolled agent" who is licensed to represent you before the IRS. Although you can interact with the tax authorities without a representative, the settlement process can be complex and challenging, especially if you don't have prior experience.

Large penalties and high interest for back taxes, ultimately leading to the seizure of assets, are written into various state laws similar to the laws that empower the U.S. government to levy and collect taxes via the Internal Revenue Service.

Paying your tax debt in full is the best way to get rid of a federal tax lien. According to the IRS, your lien will be released within 30 days after you have paid your tax debt.

For more information about the IRS putting a lien on your property, get IRS Publication 594, The IRS Collection Process.