You Owe the IRS — And COVID Is Affecting Your Business: What Can You Do?

There’s no discounting the economic impact of the coronavirus pandemic, which has proven devastating for already vulnerable businesses. Even as quarantine restrictions ease, you may face a variety of unprecedented challenges that prevent your business from achieving expected profits — and handling already overwhelming tax issues.

Thankfully, the IRS and SBA offer a variety of options for addressing your most urgent financial concerns. The following are among your best options for addressing such matters during this time of economic uncertainty:

Seek Assistance Through EIDL

If you’re involved in the agricultural industry, you may qualify for the Economic Injury Disaster Loan (EIDL). While a variety of businesses previously qualified for this program, its scope is now limited. Still, in many cases, this loan can provide considerable relief.

Keep Employees on Payroll With PPP

Setting aside money for tax expenditures may be virtually impossible if you can’t even handle payroll or rent. Thankfully, relief is available in the form of the Paycheck Protection Program, which provides full loan forgiveness to those who keep employees on payroll for a minimum of eight weeks.

Use Deadline Extensions to Prepare for the Future

The IRS has suspended collection activity and tax deadlines until July 15th. Complacency should be avoided during this time, however.

While the IRS will not pursue collections at the moment, such activity could return in full force after July. At this point, it may behoove qualifying businesses to adjust installment plans as needed. Take advantage of current extensions on the Offer in Compromise (OIC) program, as pending requests will not expire during this time.

If you’re confused about tax issues as they relate to COVID-19, don’t hesitate to seek help from the Highland Tax Group. We can guide you through the complications of this year’s taxes. Reach out today to learn more about our services.