We have received several calls from clients advising us that they have been receiving calls from "The IRS" warning them that they are going to take "LEGAL ACTION", that it is "URGENT", and there is some kind of discrepancy.
Some people are surprised to learn they're due a large federal income tax refund when they file their taxes. Others are surprised that they owe more taxes than they expected. When this happens, it's a good idea to check your federal tax withholding or payments. Doing so now can help avoid a tax surprise when you file your 2013 tax return next year.
Phony tax preparers may offer extravagant services through alleged clever use of the law. Watch out for such enticing claims. The IRS considers a taxpayer, not preparer, liable for false statements or mistakes on tax documents. Fortunately, there are several ways to ensure a tax prep service is legitimate.
Back taxes are simply taxes that you owe that you didn't pay when they were due. If you've underpaid taxes for any reason, the balance that you owe is considered back tax. You may have failed to report taxable income (intentionally or unintentionally, it doesn't matter) – as the IRS sees it...you still owe them money in the form of a back tax.