Tax Debt

Tax debt is the amount of money a person or business owes to the government because they haven't paid enough in taxes by the deadline. This can happen if taxes weren't fully paid throughout the year, or if a mistake was made on a tax return. The government expects these taxes to be paid promptly, and if not, the owed amount becomes a debt. Unpaid tax debt can accrue interest and penalties over time, increasing the total amount owed. Resolving tax debt typically involves paying the owed amount, possibly through installment plans or negotiations with tax authorities.