Along with helping people with their taxes, I also love to hike. I know all too well the importance of being prepared and having a contingency plan in case things don’t go as planned. The last thing you want when you’re up high on a mountain trail is to get caught by the elements or suffer an injury that prevents you from making your way back down safely. You need to know what to do to safeguard your health and well-being.
As a small business owner, you likely spent a lot of time developing a business plan to get your company up and running, and you hired employees along the way to help you make your business succeed. Like any small business, you’ve probably had to deal with more than a few curve balls along the way to keep your business afloat. Like on the trail, you need to know what to do when things go awry and where to turn for help when the problem becomes overwhelming.
One important aspect of running a business is paying payroll taxes if you have employees. However, times have been tight, and your cash flow hasn’t met expectations. Now, you are struggling and can’t pay your payroll taxes, and you wonder what you should do.
Do Not Avoid the Issue: Take Action
Although you may not have the money to pay your payroll taxes, you must still file your business tax return on time or request an extension. The IRS often works with struggling business owners, but the agency has little patience for those who appear to be intentionally avoiding their taxes. If you haven’t filed, you must do so as quickly as you can, and you should never ignore any notice or letter you receive from the IRS regarding your business taxes.
The IRS has several options to collect the money you owe, including liens and seizing your business’ property. They could even come after your home and other possessions as well as your wages in some instances. In worst-case scenarios, you could even face jail time for tax evasion, so you need to address the issue as soon as possible. Additionally, you will likely face penalties, fees, and interest on the money you owe if you don’t pay, which will only compound your problems.
If the IRS has already contacted you regarding your payroll taxes, you should contact a tax professional right away. As mentioned, the IRS is willing to work with taxpayers in most cases, and they have several ways for delinquent taxpayers to make good on what they owe. Some methods include an extension for the time you have to file, an offer in compromise, or an installment plan to make payments over time.
If the IRS has informed you they have assigned a revenue officer to your case you must meet with, you need to take the matter seriously and contact an enrolled agent for help. An enrolled agent can represent you before the IRS to help you get the most favorable outcome possible.
Get the Help You Need Now
Going back to the hiking example above. I’ve found over the years that the best way to stay safe on the trail is to not hike alone. If I should fall and twist my ankle, for instance, I have someone with me who can help me down the mountain or contact emergency personnel for assistance.
The same can be said of facing IRS problems. If you are a struggling small business and can’t pay your payroll taxes, the last thing you want to do is ignore the problem, and you need someone on your side to help resolve the issue.
Contact the enrolled agents and tax professionals at the Highland Tax Group today to discuss your case and get the help you need.