Depending on where someone lives, federal tax rates could vary from 10 percent to nearly 40 percent of taxable income. However, some individuals are fortunate enough to receive some of the tax exemptions on income, property, or persons that all governments in the United States are able to offer. But the complex nature of taxes and exemptions might mean that individuals could run into problems and end up having to owe IRS back taxes. If someone does owe IRS back taxes, they will want to quickly clear their debts in order to avoid some of the harsh penalties that the IRS can use.

Anyone who does owe IRS back taxes might have to face the levy. A tax levy, under U.S. Federal law, is an IRS administrative action to seize property in order to satisfy a tax liability, under statutory authority and without having to go to court. Fortunately, taxpayers who owe IRS back taxes will have time to pay back debts because the Fifth Amendment of the Constitution prevents the government from taking property without due law processes. That regulation might allow individuals owing back taxes to get some help and clear debts before having their property taken away.

In addition to being able to levy upon taxpayers who owe IRS back taxes, the IRS can also levy assets that are in the possession of a third party like a bank or brokerage house. That ability makes the levy one of the harshest penalties that the IRS has, and should make people who owe irs money work hard to clear their debts. Though there are several options for taxpayers who owe IRS back taxes, simply making payments in order to get out of debt is the best way to avoid tax penalties.

Because of the complex nature of taxes, individuals who owe back taxes to IRS agencies might want to find some professional help in order to clear their debts. Owing back taxes to IRS agencies can seem overwhelming and burdensome, especially for individuals who have little experience dealing with taxes. If that is the case, anyone who might owe IRS back taxes should consider contacting and working with an attorney or other tax professional. They will have the skills and experience needed to not only inform individuals of the options they have, but provide some useful advice on how to avoid having to owe IRS back taxes in the future.