This article will help business owners understand:
- The risks of not filing or paying your taxes,
- What the government and the IRS can do to collect the taxes you owe, and
- How a tax attorney can help you optimally resolve your back taxes.
What Dangers Do Business Owners Who Fail To Pay Or File Taxes Face?
It is very dangerous for a business owner to fail to file their taxes. If they do not, the IRS can eventually levy their bank account and even levy their customers directly. If they do that, customers will send everything to the IRS, not just a percentage.
If the problem persists, the IRS can even shut down the business entirely if they feel it’s necessary.
Can The Government Collect My Debts From Business Contacts Who Owe My Company?
Yes, the IRS can contact your customers and anyone who owes your business money.
The IRS will send them a levy notice, telling them to pay everything that they owe your company to them instead of to you.
Does My Business Have To Provide The IRS Information About Who Owes Us Money?
Yes, you do have to provide information on who owes your business money to the IRS. If you refuse to do so, the IRS can levy your bank accounts, issue subpoenas for the information, and even shut down the business until you comply.
Can The IRS Close My Business For Owing Back Taxes?
Unfortunately, yes, the IRS can close your business completely if your tax situation gets out of hand. However, this will only be a last resort for the IRS.
It will only occur if you ignore the IRS and refuse to cooperate at all, then they will come in and shut you down.
Can A Tax Attorney Help My Business Avoid Embarrassing, Inconvenient, Or Disastrous Outcomes?
A good tax attorney can help you and your business in several ways, even if you are already behind on your taxes.
They can help you get compliant with the IRS, which means everything is in order and filed, even if not paid. Doing so then allows you to negotiate with them. Tax attorneys are also specialists in negotiating with the IRS for a better outcome.
With their help, you can keep your business open and pay back what you owe in small amounts.
What Types Of Resolution Can My Tax Attorney Work Out To Resolve My IRS Business Tax Debts?
First and foremost, a good tax attorney will get the IRS to put a hold on collections for 30, 60, or 90 days in order to let your company begin putting together a plan and find money to pay them.
After that, most of the time, a tax attorney will be able to help you get an installment agreement in place. It will be structured to allow you to pay what you owe over time without hurting or bankrupting your business.
In rare cases, a tax attorney can even work out a compromise offer with the IRS. This would allow you to pay back less than what the business actually owes.
What Should I Do If I Find Myself Behind On My Taxes?
Your first action should be to call a competent and experienced tax attorney. They will help you through the crucial next steps such as filing, complying with IRS demands, and negotiating payment structures.
With the guidance of a skilled Tax Attorney, you and your business will be stronger, safer, and more profitable. For more information on Tax Filing in South Carolina, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.