What is The Difference Between Back Taxes and Current Taxes?

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Taxes is a word that may bring a shiver down the spine of hardworking Texans. But at DiLucci CPA Firm, where we’ve been part of the fabric of Texas’s business and tax landscape since 2005, we approach taxes as an opportunity for growth and empowerment. Whether you’re an individual or a business owner, understanding the differences between back and current taxes is crucial for maintaining financial health. Let’s demystify these concepts, shall we?


Back Taxes

Back taxes are not the ghosts of Tax Days past, but they can haunt you. They are simply the taxes you owe from previous years that haven’t been paid. Think of them as an IOU to the IRS or the Texas Comptroller. But why should you care? The longer these taxes go unpaid, the more penalties and interest accrue, making a mountain out of what might have started as a molehill.

It’s not just about the money owed, and it’s about the ripple effect. Unresolved back taxes can affect your credit score, cause a garnishment of wages, or even lead to a lien on your property. But fear not. This is where we step in. Our family firm is built on a foundation of trust and communication. We don’t just crunch numbers; we cultivate relationships to maximize value and peace of mind for our clients.


The Presence of Taxes

Current taxes are the ones you’re preparing to file this year – the present of taxes, if you will. These are the taxes on the income you earned this year, and they’re due by April 15th in most cases. Staying on top of these taxes is like maintaining your car; regular attention prevents breakdowns.

Why focus on current taxes? Because proactive tax planning can lead to significant savings. It’s not just about paying what you owe; it’s about understanding potential deductions, credits, and strategies that can reduce your taxable income. With our finger on the pulse of the latest tax laws, we help you, as Texans, steer clear of pitfalls and capitalize on opportunities.


The Impact of Back Taxes on Your Financial Future

Ignoring back taxes is like ignoring a check engine light; eventually, the problem worsens. The IRS isn’t known for its patience. They can levy your bank accounts, seize assets, and disrupt your life and business. But here’s the good news – you have options, and we’re here to illuminate them.

Through our tax resolution services, we work with clients to address these back taxes head-on, negotiating payment plans or settlements where possible. Our goal isn’t just to clear your tax slate but to empower you financially, setting you up for long-term success and growth.


Balancing Act

It’s all about balance. Managing back taxes while staying current with this year’s taxes is like juggling – it requires focus, timing, and skill. The balance is delicate, but with a knowledgeable guide, it’s achievable. 

Our firm doesn’t just prepare your tax returns; we work alongside you to craft a comprehensive tax strategy. By balancing the management of back taxes with intelligent planning for current and future taxes, we strive to keep you ahead of the game, ensuring the IRS stays out of your daily life.


How DiLucci CPA Firm Can Assist You

Need help with back taxes or need clarification about your current tax situation? It’s time to bring in the cavalry – that’s us. We don’t just resolve tax issues; we prevent them. With our team’s proactive approach, we ensure that your taxes are as painless and profitable as possible. Call us at DiLucci CPA Firm to speak with a lawyer in Texas, call (972) 444-9934, or contact us online to schedule a consultation to help guide you through your Tax, Accounting, or IRS matter. We’re not just accountants; we’re your financial partners, dedicated to fostering long-term growth for you and your business. Let’s get your tax affairs in order.