What to Do When You Owe the IRS for 2021 — And You Already Have a Balance: Part III

Tax debt is complicated enough when it’s limited to a single year and you owe the IRS. Things get a lot more confusing when obligations span several years. Even worse? Handling this problem when it involves payroll taxes or other business obligations.

In the final article in our three-part series on this confusing topic, we will cover special considerations that apply to business owners with more than one year of tax debt.

Can Businesses Use IRS Form 9465?

In the first parts of this blog series, we discussed IRS Form 9465. Typically, this is used by individuals seeking new or adjusted installment agreements. In most cases, this option is not available for businesses with tax debt. The exception? Businesses that are no longer operating.

What About the In-Business Trust Fund Express Installment Agreement?

Currently operating small businesses with employees and modest debt levels can qualify for the In-Business Trust Fund Express Installment Agreement (IBTF-Express IA). This is only open to businesses with $25,000 or less in total tax liabilities. Those with higher debt can qualify by first paying down all debts above the $25,000 level.

When to Use IRS Form 433-B

Known as the Collection Information Statement for Businesses, IRS Form 433-B is meant for companies that cannot immediately handle federal tax obligations but also are ineligible for using Forms 9465 or the IBTF Express IA. This document dives into specifics such as accounts receivable, business equipment, intangible assets, and more.

If Form 433-B is required, the IRS recommends promptly getting in touch with a Field Collection Revenue Officer. Swift communication with the IRS is even more important when dealing with both new and old sources of business tax debt. Better yet? Getting support from an IRS enrolled agent.

As a business owner with a complicated tax situation, you need guidance from a highly trusted resource. You’ll find the help you need with the Highland Tax Group, which boasts a strong reputation. Contact us today to learn how we can help you resolve your business tax debt.