While it’s common for individuals and businesses to owe money to the IRS, many of them have the means to pay their tax debts when they file every year. However, not everyone can do this, leaving debts owed to the Federal Government outstanding. If you fall into this category, there are some important things that you need to know, including the following:
1) You Still Need to File Your Current Tax Return
Even if you owe the IRS money from a previous year or two, you still need to file your current tax return on time. Not filing can lead to a number of penalties, and it may void any ongoing payment agreements that you have with the IRS. It’s always a good idea to make sure that you send in that return on time, even if that return results in you owing money to the IRS.