Does Tax Debt Carry Over From Year To Year (And How To Get Rid Of It)

2023 is right around the corner, and many Americans are planning their New Year’s resolutions. Exercise, spending more time with family and friends, and learning a new hobby may be at the top of that list — but what about tackling the tax debt that may carry over from year to year?

In this article, we’ll cover:

  • Tax debt forgiveness
  • How do back taxes impact your tax refund?
  • What to do if your spouse owes tax debt before marriage?

Let’s make 2023 the year you get rid of your back taxes.

Does Tax Debt Carry Over From Year To Year? Is Tax Debt Forgiven Each Year?

Yes, tax debt carries over from year to year. Though there is a statute of limitations on tax debt, along with exceptions, you’ll probably still be on the IRS’s radar in 2023.

To learn more about tax debt, check out these popular articles:

What Happens To Back Tax Interest And Penalties After A New Year Starts? How Does This Impact My Tax Return?

Once a tax return is late, interest and penalties start to accumulate on the unpaid balance. Check out this article if you filed your tax return incorrectly and want to avoid as many penalties as possible. 

If you owe money to the IRS, the money will be taken out of your tax return refund. The leftover amount will still be refunded, if applicable. 

As you can see, the IRS will not forget about your tax debt any time soon. To make 2023 the year you’re free from the IRS, check out our free tax consultation. TaxRise represents taxpayers who are audited by the IRS and advocate for the best relief outcome possible.

The IRS offers a Fresh Start Program where you can apply for tax relief. In this consultation, we analyze your finances and recommend the best program for your unique situation. 

What Happens if You Marry Someone Who Owes Back Taxes? How Does Filing Status Impact Tax Debt?

Though this depends on the state, if your spouse owed tax debt before marriage, you’re not liable for their tax debt. 

It’s recommended that you file separately until your spouse pays off their tax debt. Of course, this varies depending on multiple factors, so be sure to speak with your tax professional if you’re not sure how to file.

The Takeaway

If you’re tired of being stuck in tax debt, sign up for your free tax consultation. From this call, you’ll be able to determine if you qualify for our services and which tax relief program will work best for your unique situation. 

TaxRise has helped thousands of taxpayers just like you resolve their tax issues and erase their tax liability. Book your call and get started today!

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