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.
House Ways and Means Oversight Subcommittee chairman Charles Boustany, Jr., R-La., sent a letter Wednesday to IRS Acting Commissioner Steven T. Miller demanding a copy of the video parodies produced in the IRS's television studio in New Carrollton, Md., claiming the studio may have cost taxpayers more than $4 million last year, according to a review of contracts.