At first it may seem counterintuitive.
Why would someone who makes a lot of money, owe back taxes?
There’s an impression that people who owe back taxes are largely people who are overall in a very financially precarious situation. And there certainly are many people who have back taxes because of low income, or catastrophic life events like job loss and health issues.
However, there is a corner of the world where people have back taxes because they (at least on paper) made decent money, but they mismanaged their finances.
This is often people who are in business and who are very focused on “survival mode” (getting new customers, keeping the business afloat). And yes, on paper, they made some decent revenue. But they let the tax side of things fall through the cracks.
When these people have IRS back tax problems, they tend to do so in a very, very big way.
That is why so many business owners might feel like they “haven’t made any money”, but in reality, they owe multiple 6-figures in back taxes.
Of course, when the problem gets to this level, the IRS catches on, and moves these people right to the top of the enforcement pile.
In my newest video, I cover the dynamics of what i means to “make a lot of money”, but have a substantial IRS back tax problem. And I share the prognosis and options that these people have to get their situation resolved favorably.