An Overview of Unpaid Back Taxes, Late Tax Filing, Payroll Tax Filing
When we fail to pay our taxes on time and we leave them to accumulate over a period of years this is what we call back taxes. In the event that an individual fails to pay his tax on time, results into a not so favorable situation because you will end up to be charged an interest on the total amount of tax that you did not pay in good time and also you will have a credit report penalty. When an individual finds himself in the situation of unpaid back taxes it may be a nerve-racking situation for them because they will have to pay the taxes that they were supposed to pay earlier with interest which will have accrued over a period of time, and if they are not in a position to pay this taxes it will be very detrimental to them. Although they may be able to request to pay the amount in installments since they’re not able to pay it in lump sum.
There are times that individuals find themselves in situations where they have failed to file their taxes in good time and therefore the deadline has passed and at times they may be genuine reasons behind it and other times it may just be excused. Most of the times you’ll find that there are no genuine or substantial reasons as to why individuals may file their taxes late because this is an activity that they can delegate in case they find themselves in situations that they are not able to do their own filing. In the end late payment of taxes leads to penalties that are levied on the tax that you have failed to pay on time and therefore, we can say that the delay causes extra amount because the amount will have increased in total.
Payroll tax involves a tax that is levied on the income or salary of individuals and is also independent on the amount of salary that an individual receives. The government tries to ensure that there is high rate of employment so that it can be able to also acquire increased revenue in terms of the tax that is levied on the individuals who are working. When it comes to payroll tax filing individuals should ensure that they file their taxes on time so that they do not end up having issues with the government as a result of failure of submitting their taxes to the relevant authorities. In this guide, we have had the opportunity to discuss the unpaid back tax, late tax filing, and payroll tax filing.