Assisting Businesses With Tax Issues
While most tax problems occur with small businesses, assistance is available for all types of businesses. Common issues include failure to file payroll tax returns, unemployment returns, corporate returns, or partnership returns, all of which carry penalties. Additionally, businesses often struggle to pay their quarterly taxes when due. The majority of tax issues for businesses involve payroll tax matters.
Concerns And Consequences For Businesses Facing Tax Issues
Business owners and key decision-makers may face serious consequences when dealing with tax issues with the IRS or state authorities. Potential repercussions include:
- Business closure: The IRS or state can shut down a business that ignores warnings or revenue officers. The IRS can obtain a court order to close the business, while the state may revoke the business license.
- Loss of customers: Tax problems can lead to a loss of customers, especially if the IRS publicizes the notice.
- Levies on the business: Both the IRS and the state can levy a business’s bank account, empty its funds, and even redirect customer payments to themselves. This can result in business closure.
It is crucial to address tax issues promptly to avoid these consequences and maintain the stability and reputation of your business.
Common Business Tax Mistakes
Business owners often make mistakes when handling their taxes. A common error is prioritizing other bills, such as utility payments, over IRS obligations. This can lead to serious consequences, including business closure. Another typical mistake is not setting aside withheld employee taxes in a separate account to ensure timely payment.
Resolving Business Tax Issues
If your business owes a substantial amount to the IRS, consider the following options:
- Immediate action: Consult a tax attorney as soon as you receive a letter or visit from a revenue officer. They can help negotiate a 60-90 day window to organize your finances and develop a plan.
- Installment agreements: Work with your tax attorney to establish an installment agreement, allowing you to pay off the debt over time.
- Offer in compromise: In rare cases, the IRS may accept an offer in compromise for a business, though they generally prefer installment agreements.
When To Hire A Tax Attorney
It is crucial to involve a tax attorney when dealing with tax debts, particularly if a revenue officer contacts you. They can help you navigate the process and avoid common pitfalls. Additionally, attorneys can assist you in answering audit questions and ensuring you do not unintentionally incriminate yourself or provide inaccurate information. Reach out to a tax attorney as soon as you receive a letter from the IRS or notice a potential issue with your taxes.
For more information on Handling Tax Issues For Business Owners, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling
(864) 271-7940 today.