Back taxes refers to unpaid taxes that a person or company owes to the IRS. About 20% of US tax filers either owe back taxes or are late in filing a tax return according to the IRS.

Back taxes have a negative effect on your credit rating and can persist on your credit record for years. If you cannot afford to pay the full amount of your back taxes, you should still contact the IRS either directly or through the services of an Enrolled agent to explore any settlement options that you might qualify for.

The IRS is empowered to accept less than the full amount of back taxes in cases where you can show that you are unable to pay the full amount.