A Discussion about 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. 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. If they may not be able to pay it in full, they are free to request for installment payment so that they may be able to clear the debt.
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. 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. 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 discussion, we have been able to talk about the unpaid back tax, late tax filing, and payroll tax filing.