Tax debt can be a crushing blow for any small business, and it is crucial that you take steps to resolve it as soon as possible. Our experienced team of tax resolution lawyers, CPAs, and enrolled agents at Moskowitz LLP can represent you in front of the IRS as you seek a solution.
The IRS may work with you if you are a small business owner who is facing a large tax debt. You may be able to negotiate more time to pay your back taxes, and you may even have the ability to pay less than you owe. The crucial step that you need to take is to hire a tax resolution attorney, so you can learn about your options.
You can begin to take control of what may seem like a hopeless situation by taking the first step of speaking to a tax resolution attorney. At Moskowitz LLP, we work with small business owners who find themselves in difficult tax situations. Call us today at (888) 829-3325 to learn how we can help you.
Make Sure That You Have Filed Your Tax Returns
Before you can even address the matter of your tax debt with the IRS, there are certain steps that you must take first. The IRS may be willing to work with you, but you must be current on all of your tax returns first. If you have not yet filed all of your required tax returns, now is the time to do so. In addition, you must also be aware of any outstanding issues with the tax return that you have filed and the reasons why the IRS is claiming that you owe them money. Make sure that you have all of the necessary documentation to present to your tax resolution lawyer, so you can discuss the reasons behind your tax debt.
Agree to an Installment Plan
You may owe all of the money that the IRS says, but you do not have the ability to pay it all at once. The good news is that you can agree to a payment plan with the IRS that allows you more time to pay the money that you owe. There are requirements that you must meet before you can agree to an installment plan, which include:
- You must be current on all of your tax returns with the IRS and remain that way during the course of your installment plan agreement
- You must demonstrate your business’s ability to make payments on the amount that you owe
- If you owe more than $25,000 in back taxes, you may be asked to provide additional financial information, and the IRS may even require a lien against your business
If you have an installment plan, you still need to pay interest on the amount that you owe. However, an installment plan helps you gradually pay off tax debt.
As an alternative to an installment plan, you may be able to have the IRS place your account into a currently not collectible (CNC) status. However, even if the IRS is not actively collecting taxes, you would still be liable for interest on the balance you owe, and the IRS may end CNC status and being collection again.
Make an Offer in Compromise
If you are a small business owner, know that you always have the option of trying to negotiate with the IRS. The agency has an incentive to reach an agreement with you because the IRS wants to collect as much of the taxes that they are owed as possible. The IRS may be willing to accept an offer in compromise (OIC) that would allow you to settle your tax debt for less than the full amount. The IRS may accept an offer to pay less than what you owe if the IRS deems it cannot collect the full amount owed in the proper amount of time to collect. Additionally, while the IRS may not accept your offer, it can still propose to compromise your tax debt at a higher offer amount that is still less than what is owed.
An experienced tax resolution attorney knows how to negotiate with the IRS. When you are making an OIC, you need both realistic advice and someone who understands what the IRS may be prepared to accept, and that is what we bring to the table at Moskowitz LLP.
Contest the Amount of the Tax Debt
The IRS is not always correct when the agency says that you owe money. As a small business owner, you may be presented with a large tax bill that is based on flawed information, calculations and/or assumptions. You may have the ability to fight the IRS in U.S. Tax Court when they have incorrectly made an assessment. Your tax resolution lawyer can present your case to the Court to show why the IRS has made a mistake.
Contact a Tax Resolution Law Firm Today
If your small business owes the IRS money, and you are not sure how to handle the situation, speak to our team of tax resolution attorneys, CPAs, and enrolled agents at Moskowitz LLP. You can schedule an appointment to speak with our multi-service tax firm by filling out an online contact form or by calling us today at (888) 829-3325.
