No matter what time of year it is, it always feels like tax season is right around the corner. The thought of the IRS and state revenue departments can make any small business owner nervous. Especially if you owe back taxes! If you are small business owner with a back tax issue, this is for you!
Keeping a business afloat is hard enough. Now you face the challenges of navigating through nationwide closures due to the pandemic. And if you owe back taxes, it’s even more imperative that you take care of that matter. The IRS has the authority to seize your bank account and business!
The government recognized the gravity of the situation for small businesses. They implemented stimulus relief options in 2020, such as the Paycheck Protection Program and Economic Injury Disaster Loan. Some proposed updates in tax laws included increasing the corporate and individual income tax rate, capital gain rates, and federal employment taxes were changed. One of the proposed changes included increasing funding to the IRS. This includes funding for more audits and enforcement.
Whether you’re trying to avoid tax issues or already under heat with the IRS, it’s best to resolve your problems before they get worse. The reality is that the IRS is the agency responsible for the assessment and collection of taxes. They do not take it lightly when you fail to fulfill your responsibility. This includes not filing your returns or paying your tax liabilities.
The right tax resolution firm can guide you through your tax problems and determine your eligibility to take advantage of various tax relief options, such as:
Abatement of penalties and interest – You can file a Request for Penalty Abatement Based Upon Reasonable Cause. You present facts that led to the late-filing or unpaid liability. The IRS determines if they fit the criteria for abatement.
Deemed uncollectible – If a determination is made that a taxpayer is uncollectible, the taxpayer’s account is removed from active IRS collections.
Installment agreements – You make monthly payments to fulfill your tax obligation. While in an installment agreement, you must file all future tax returns when due and pay all associated unpaid taxes in full.
Offer in Compromise – Under the OIC program, you may pay a lesser amount than the total amount of taxes owed. There are very tough criteria to be eligible.
Partial payment installment agreement – A Partial Payment Installment Agreement is when a taxpayer enters into an Installment Agreement with the IRS. Under this program, your monthly payments may not total the amount due to the IRS before the agreement ends.
Trust Fund Recovery Penalty Protests – If the IRS has assessed a TFRP against you and imposed tax and Social Security withholdings.
For any small business, navigating the complexities of the tax system can be overwhelming. Even more so once the IRS collection process starts to escalate. For more on what a tax relief firm can do for your Seattle business, contact IRS Trouble Solvers today at 206-970-4477. Talk with a Tax Resolution Expert today.