Definition

Back taxes is a term for taxes that were not completely paid when due. Typically, these are taxes that are owed from a prior year.

What is 'Back Taxes'

Taxes that have been unpaid in the year that they were due. Taxpayers can have unpaid back taxes at the federal, state and/or local levels. Back taxes accumulate interest and penalties on a regular basis.

Explaining 'Back Taxes'

Unpaid back taxes can be a serious issue for many taxpayers who don't have the means to pay them. The Internal Revenue Service (IRS) has recently turned over the collection of unpaid back taxes to a private collection agency. Taxpayers who lack the means to repay taxes may often negotiate a lesser settlement via an offer in compromise with the IRS either directly or through a tax attorney.

Further Reading

The economics and politics of tax increment financing
onlinelibrary.wiley.com [PDF]
… stockholders of a levered firm as holding a European call option to buy back the entire … curve UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at a … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller [12 …

Offshore pariahs? Small island economies, tax havens, and the re-configuration of global finance
www.sciencedirect.com [PDF]
… stockholders of a levered firm as holding a European call option to buy back the entire … curve UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at a … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller [12 …

Repatriation taxes, repatriation strategies and multinational financial policy
www.sciencedirect.com [PDF]
… stockholders of a levered firm as holding a European call option to buy back the entire … curve UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at a … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller [12 …

Globalisation and developing countries–a shrinking tax base?
www.tandfonline.com [PDF]
… stockholders of a levered firm as holding a European call option to buy back the entire … curve UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at a … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller [12 …

Equity and entrepreneurialism: The impact of tax increment financing on school finance
journals.sagepub.com [PDF]
… stockholders of a levered firm as holding a European call option to buy back the entire … curve UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at a … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller [12 …