An Irvine Business Lawyer on Small Business Tax Debts and the IRS
If your business owes the IRS money, you cannot ignore the matter. The government does seem to move slowly at times, but sooner or later it will come after you, and the potential penalties only become worse with time. Of course, the issue for most is the inability to pay what is owed, but there are issues you should consider before you proceed.
Keep in Contact
Answer the IRS letters that come, and provide the documentation they request. The IRS has significant power and can seize your assets and shut down your business but doesn’t usually do that when a business owner is cooperating. At the very least, if you keep the lines of communication open, you can buy yourself some time.
Request a Payment Plan
If you are in the position to do so, a repayment plan of up to 72 months may be possible depending on the amount of your debt.
Offer in Compromise
If the IRS concludes it is unlikely it will collect the full amount you owe, this option may allow you to settle your debt for pennies on the dollar.
Seek Uncollectible Status
If your business truly is not generating any cash flow, the IRS may agree to leave you alone for a certain period of time, but interests and penalties ma continue to accrue.
Bankruptcy may, under certain circumstances, eliminate tax debts.
Contact an Irvine Business Attorney for Legal Advice
Don’t face the power of the IRS alone; call Daily Aljian, LLP, an Irvine business lawyer, at 949-861-2524.