Tax Debt Relief for Small to Medium Sized Businesses
There is no denying that the tax burden on small and medium size American businesses is significant. The IRS actually estimates that businesses bringing in less than 1 million dollars in revenue each year actually shoulder the burden of nearly two-thirds of business supply costs.
On the other side of things, there is also no denying that small businesses are at a higher risk of underpaying their annual taxes. So if you are a small or medium size business owner, you should be very careful to monitor your income closely, especially when it comes to cash. The IRS looks very closely at the annual tax returns from small and medium size businesses, so take great care when it comes to your return. You do not want the IRS to come knocking!
If you find yourself in a situation in which your business owes a significant sum of money to the IRS, you want to look for ways to resolve this debt and find relief fast, before it impacts your operations and your bottom line. Take a look at the following strategies to manage your business’ tax debt.
Take Advantage of the Many Tax Breaks Offered
Current tax law actually provides some significant benefits and savings to small or medium size businesses, but you need to know where to look to take advantage of these tax breaks. For example, Provisions like Section 179 allow you to deduct more business related expenses in the current tax year, rather than having to wait and spread out these deductions over several tax years. This can provide your small business with significant tax savings, reducing your overall tax debt.
You should also investigate creative (and legal) deductions that might apply to your business. For example, you may be able to deduct health care premiums on your taxes to help reduce your overall taxable income.
Communicate With the IRS
Fortunately, very often a resolution can be found for small businesses with mounting tax debt. One of the keys to a positive resolution is to stay in touch with the IRS. Trying to ignore the problem will only compound it—not make it go away. It may take the IRS a while, but they will not forget about a debt.
Investigate Payment Options
The IRS actually has several alternative payment options for those individuals and businesses that are unable to pay their tax debt. You can request an installment agreement (payment plan allowing you to pay debt over time), an offer in compromise which settles your debt for less than you owe, or you can ask for an uncollectible status, which gives you a certain period of time where the IRS will not attempt to collect taxes from your business. Keep in mind with all of those options, interest and penalties will still add up.
If your small or medium size business owes a large sum to the IRS, it might be time to enlist the help of a tax firm. A tax firm can review your return and make sure that you are not missing any important deductions or tax credits, and can help your business put in a strong application for an installment agreement, offer in compromise or uncollectible status.
Success Tax Relief has been helping businesses develop strategies to manage their tax debt for more than 30 years. Give our team of professionals a call today at 1-877-958-6638 today and take the first step toward freedom from tax problems.