Getting a large, unexpected tax bill from the Internal Revenue Service (IRS) is alarming for anyone, but when your small business is already at risk, it’s especially anxiety-inducing. After all, not squaring up with the IRS can mean dire consequences for your business—including frozen assets, seized bank accounts and even shutting down for good.
If you find yourself in this situation, the best thing you can do is to stay in contact with the IRS. The IRS doesn’t simply go away just because you’re ignoring the notices, and not handling your tax liability in a timely manner can lead to further penalties and interest.
That said, you don’t have to go it alone with the IRS. By hiring a tax professional, you have someone on your side, pushing for the best solution for your business.
Some of the ways a tax professional can help you include the following:
- Verify your debt to make sure the IRS’s calculations are correct.
- Help set up an installment plan for payments.
- Help you make and execute an “offer in compromise,” which involves the IRS agreeing to accept an amount less than your actual tax debt.
- Pursue “uncollectible status,” through which the IRS agrees not to pursue collection efforts for a specified period of time.
- Advise you regarding whether your business should go through bankruptcy to reduce or cancel some tax liability.
The IRS offers some guidance through its website, and you may also seek out guidance from resources such as the Small Business Administration and local business associations near you.
For personalized advice on your situation, though, your best bet is a tax professional who knows the ins and outs of small business taxes. Call us or send us a message to get started on working out your small business’s tax issues today. As always we can be reached at 720-398-6088!