Owning a small business requires financial diligence—especially staying on top of taxes. Tracking receipts and keeping orderly records not only makes tax filing easier, it paves the way to a healthier business.
But what if something goes wrong? Sometimes, come tax time, if income is thin and no money has been set aside, businesses must choose between paying their taxes and paying payroll, vendors, or important expenses.
If this is your situation, don’t panic. You can propose a payment plan to the IRS. Sometimes, a business in financial hardship can settle with the IRS for less than the debt owed. But you need a tax resolution expert to calculate your finances and then represent your case to the IRS.
If you ignore your debt, then you will face penalties and interest later. I have seen plenty of businesses in this situation and have helped plenty get out of it. The important point is to communicate with the IRS early to request a payment plan or some other negotiated agreement.
Submitting such a request will require full disclosure of business records showing your assets, liabilities, income, expenses, and business operation. That may sound like a lot but don’t worry, part of a tax resolution specialist’s work is to help hunt down all the deductions and credits you deserve.
If you aren’t able to file your business taxes, you can still make the best of your situation by doing the following:
- File your current year tax return
- File an installment agreement
- Review you situation to make certain you owe as much as the IRS or FTB says you owe
You can also file these documents with the help of a tax resolution expert. It’s time to stop worrying about your taxes and get back to growing your business. Take the first step towards peace of mind and book a free consultation with me.