What to do if you owe back taxes - FOX 10 News | fox10phoenix.com

What to do if you owe back taxes

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It's estimated that over 8-million people still owe back taxes and haven't settled up with Uncle Sam.  What to do if that is you.

Lawrence Levy, President Levy & Associates, Inc. and Clarence Glenn a former IRS manager, talk to Fox 2's Murray Feldman about how to handle back taxes.

Web site: http://www.levytaxhelp.com/

What if you owe the State of MI:

Be cautious -- the state of MI will sub contract out its debt collection -- make sure you ask if you're speaking to a collection agency or the State Treasury !  The collection agency is called GC Services / commonly referred to as MARCS (Michigan Automated Receivable Collection System).


1.  Payment plan / installment agreement

2.  Hardship / placed in a currently unable to pay status.

3.  Penalty abatement / ** you must meet their reasonable cause criteria

Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return. Depending on an individual's circumstances, a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved.

Facts about Filing Tax Returns

Failure to file a return or filing late can be costly. If taxes are owed, a delay in filing may result in penalty and interest charges that could increase your tax bill by 25 percent or more.

There is no penalty for failure to file a tax return if a refund is due. But by waiting too long to file, you can lose your refund. In order to receive a refund, the return must be filed within three years of the due date. If you file a return, and later realize you made an error on the return, the deadline for claiming any refund due is three years after the return was filed, or two years after the tax was paid, whichever expires later.

Taxpayers who are entitled to the Earned Income Tax Credit must file a return to claim the credit even if they are not otherwise required to file. The return must be filed within three years of the due date in order to receive the credit.

If you are self-employed, you must file returns reporting self-employment income within three years of the due date in order to receive Social Security credits toward your retirement.


Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions. Continued non-compliance by flagrant or repeat non-filers could result in additional penalties and/or criminal prosecution.

Levy and Associates will gather the necessary information from you to complete all of your late tax returns (personal, corporate, payroll and sales tax). Once the total tax liability is known, we will work with you to decide on the best course of action. Please contact us to arrange a meeting.

Contact for Levy and Associates>>


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