Back taxes are taxes from a previous year that were fully or partially unpaid in the year they were due. The unpaid amount may include federal, state and local back taxes. Taxpayers are responsible for repaying the taxes owed plus any penalties and interest that accumulate.
Someone might owe back taxes for several reasons, such as not reporting all their earned income or neglecting to file a tax return. When taxpayers have back taxes, the government may press charges or garnish wages. Those who owe money can choose repayment options like a personal loan or installment agreement to ease repayment.