An Overview of Unpaid Back Taxes, Late Tax Filing, Payroll Tax Filing
Back taxes are basically the situation whereby individuals fail to pay their taxes on time and are left to accumulate over the years. Failure to pay your taxes on time results to the unpaid back taxes and it is not a favorable situation because you will be charged interest on the total amount of tax that you want to pay and you will also end up having a credit report penalties. Unpaid back taxes is a very devastating situation that an individual can find themselves in, and this is because, the amount of money that will be required will be inclusive of the interest that will have been charged on the total amount that was earlier required, therefore, if you are not in a situation to be able to pay this sum in lump sum it will end up to be a very disastrous situation. The fact that they may not be able to pay the full amount at once, they may request for an installment payment method.
It is not unusual to find yourself in a situation whereby you failed to file your taxes on time and therefore you end up filing for them at a later date with or without a specific reason. Many a time we find ourselves filing our taxes late, we normally do not have good enough reasons as to why we delayed because the date for filing taxes is normally known well in advance so we have enough time to prepare ourselves to ensure that we do not delay to file our taxes on time. An individual should know that late payment of taxes or late filing of taxes does not go unpunished and it comes with a penalty on the total amount of taxes that an individual should pay, therefore the final amount will have increased.
When it comes to payroll tax this is the situation whereby tax is levied on the income that is received by individuals depending on the amount of salary that they receive. The government knows the importance of payroll taxes and this is because they are able to acquire revenue from them and for this reason, they try to ensure that there is an increase in employment rate so that more people can be able to work and therefore it will mean more revenue for the government. The individuals who are in the employment sector should ensure that their taxes are filed on time and are not delayed so that they can be able to avoid being on the wrong side of the government. In this guide, we have had the opportunity to discuss the unpaid back tax, late tax filing, and payroll tax filing.