I was reading that tags create backlinsks. I never heard of this but I know know lots about developing websites I never knew years ago so if it is possible how does this work?
Tags point back to content on your own site. So in that regard NO... that is not a backlink. However if they help Google or any other Search Engine or Spider index your content then there is a possibility that those tags have increased your exposure online. And after that the content could be scraped, linked, or who knows how it magically appears in so many obscure places. So it's not really a backlink per se but it's useful to use TAGS with keywords that actually link back to the content in your articles. I'd be interested in reading the source article and see what makes them believe it's a link from an external site that is being created by a tag. There are a whole lot of different kinds of TAGS http://codex.wordpress.org/Template_Tags And if there were a way to use them to create a legitimate backlink in the eyes of the search engines I'd sure like to know how to exploit that
Tag don't create backlink but help for better exposure to search engines. USe 5-6 tags at least per post to improve visibility.
if you use wordpress. Tag will generate link format name.wordpress.com/tag/keyword. - I don't remember exactly. But I'm not sure this called backlink which you want