Liberty Financial Solutions, LLC: We worry about the IRS so you don't have to...
Owe Back Taxes? Actionable Steps for Facing IRS Debt.
Owe Back Taxes?
Entrepreneurship can be hard. Some years are good, others are not so great. But every year, like clockwork, the IRS comes calling.
Small businesses often face unexpected financial challenges. Among the scariest of these challenges is unpaid taxes. Although the IRS may appear patient initially, resting on one's laurels can be a perilous decision. Once the IRS gears into action, they're known for their relentless pursuit and uncompromising measures. They are the most brutal collection agency on the planet.
So, if you find your business in this situation, it's paramount to be proactive. Here's a few tips to help you correct the course.
Note: If the IRS is claiming you owe $10,000 or more, contact our firm immediately for a consultation and learn about your tax debt relief options. Call us today at 817.995.5008 or email us at info@libertytaxdefenders.com.
Tip #1 - Don't Ignore the IRS
The first step is paying attention and taking action. You might not agree with the IRS, but you can’t leave them in your pile of unread mail, or worse unopened mail. Recognize the gravity of unpaid taxes and understand that it's a liability that won't just dissipate. The sooner you confront the reality, the better you can strategize a solution.
Tip #2 - Open Lines of Communication
Ignoring IRS notices can exacerbate your situation. Instead, get proper representation from a qualified tax relief firm and have them engage with the IRS on your behalf. Firms like ours have dealt with the IRS many times before. Timely responses showcase your commitment to resolve the issue and the right firm will guide you through every step of the process.
Owing 941 payroll taxes is double jeopardy. Not only can the IRS levy and lien your business income and assets, they can pierce the corporate veil, without a court order, and go against you personally.
Tip #3 - Understand Penalties and Interest
Unpaid taxes don't just stay static; they accumulate penalties and interest over time. With current IRS interest rates hovering at 8%, compounded daily, each day you procrastinate is costing you big time. Familiarize yourself with the accruing amounts to grasp the full scope of your liability. The more time you let pass, the higher the penalties and interest will be.
Tip #4 - Consider an Installment Agreement
The IRS often allows businesses to pay their tax liabilities over a period in monthly installments. If you can demonstrate genuine inability to pay the lump sum, they might consider an installment agreement. This can help in managing cash flows and ensuring business operations aren't severely disrupted.
In Summary
While addressing current unpaid taxes is vital, implementing systems to avoid future discrepancies is equally crucial. Regularly review your finances, maintain clear records, and stay updated with tax regulations. Make quarterly estimated payments and be proactive throughout that year by creating a concrete plan with your qualified tax resolution professional.
Unpaid taxes are a looming storm cloud for any small business owner. While the IRS might seem lenient initially, their eventual intervention can be formidable. By acknowledging the debt, communicating promptly, understanding your options, and seeking professional guidance, you can navigate these challenges effectively. Remember, in the realm of taxes, proactive action is always better than reactive measures.
If you're facing IRS problems and owe $10,000 or more in back taxes or are being audited, reach out to our tax resolution firm, and we'll schedule a free and confidential consultation to explain your options thoroughly and help you permanently resolve your tax problem www.libertytaxdefenders.com.
Cheers!
P.S. Make sure you get your FREE copy of our SPECIAL REPORT: "The 7 Secrets The IRS Does NOT Want You To Know!" (simply click on the link in the previous sentence, scroll down to the second section of our home page, and download your copy today!)
Or, email us at: info@libertytaxdefenders.com for your FREE COPY!
