Back payroll taxes, more commonly referred to as back taxes, are the unpaid tax money that a company or an individual owes to a central authority. This can occur for a legion of reasons, from a lag in filing taxes to a weak provision to pay the tax due to the governmental authority. Failure to pay taxes on time will result in a buildup of back taxes.
The bright side of it is that there are solutions offered by the government itself. For instance, those who are in dire need of money and have no key provisions or funds to pay the tax money within the stipulated time will be allowed an exception. This exception would be an offer of an additional 60 days to pay the amount, which can further extend to a maximum of 120 days.
It is common for startups and companies to run without sufficient financial resources. In such situations, they need help, and the government understands. So, here are two solutions to check back payroll taxes:
Paying the due tax money in installments
Those who do not have the funds to pay the money owed to a central authority can very well execute the payment over some time. However, there is a period established by the IRS that the defaulter has to strictly abide by. Another intriguing yet factual thing to be understood is that although filing taxes and paying tax money come under the umbrella term “back pay, one has to be cautious about not filing taxes on time. Having no money does not equate to failing to file taxes on time. The installment plans offered by the IRS are varied. A company or individual can check out their payment programs to learn more.
Contacting a tax relief professional
Although this is not the ultimate solution to resolve the problem of back taxes, getting in touch with a tax professional can very well ease your concerns.
Therefore, one key takeaway is that it is important to file taxes on time, whatever your financial status at that point in time. To learn more about the author, be sure to conduct a thorough online research.