backtaxes

Back taxes is a term for taxes that were not completely paid when due. Typically, these are taxes that are owed from a previous year. Causes for back taxes include failure to pay taxes by the deadline, failure to correctly report one's income, or neglecting to file a tax return altogether. A government might implement different approaches to collect back taxes, including criminal charges, offering a voluntary disclosure program that allows a broad variety of payment methods, or tax liens. If the taxes remain unpaid, the tax authority could use a tax levy to legally seize the taxpayer's assets (such as bank accounts, investment accounts, automobiles, and real estate) to collect the money it is owed.

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