The IRS shutting down your business is an understandable concern for small business owners. In addition to the personal sacrifices and the countless resources and long hours into your business, learning the IRS is taking your business can be devastating. There are some circumstances that can lead to the IRS shutting down your business. Not every situation involving tax debt will have such a dramatic consequence, there are steps you can take to mitigate the situation and save your business, even if the IRS is threatening to shut it down. You should never ignore owing taxes to the IRS. Taking a closer look at your business and tax debt can be due to noncompliance issues. Today, we at Mark Dicus & Company would like to discuss the IRS closing businesses.
Why Does IRS Shut Down a Business?
The common issues that lead to the IRS seizing businesses include:
– Tax debt payroll
– Late filing tax returns
– Failure to pay your taxes on time
– Failure of tax returns filing
– Failing to file in a timely manner as well as exhibiting a pattern of owing taxes year after year
Business Tax Debt & Penalty for Not Paying Payroll Taxes on Time
Being worse than just owing back taxes, certain kinds of business have tax debt such as payroll tax debt. On behalf of your employees, payroll taxes are handled. It can be considered theft when you fail to pay those taxes to the U.S. Treasury. Rather than the owner of them in the eyes of the IRS, the business is considered a delivery agent of those funds. Business owners can face serious repercussions in such situations. On top of the money you already owe, you can incur additional fees and penalties. You could even face criminal charges and prison time should you fail to pay. If you are convicted of willful failure to comply with federal employment tax laws, this can occur. To reach this point, things have to be severe. Before facing these types of consequences, there is plenty of time to consult a tax professional to settle and resolve your business tax debt.
IRS Tax Problem Resolution
There are things you can to do protect your business even if you owe business taxes to the IRS. To protect your business from being shut down by the IRS, there are also rules in place. To go through the process of seizing your business and assets, it takes the IRS time. Where these are usually extreme measures that don’t happen often, there are plenty of warnings. In order to protect your business, you can work with the IRS and a tax professional, such as Mark Dicus & Company.
Tax Debt Resolution Solutions
The IRS has to consider other options for collecting tax debt before they take steps to seize your property. These include payment plans and offers in compromise. Should you owe more in taxes than you can pay in full as a business owner, you have options such as partial payment plans, installment agreements, and making an offer in compromise.