4 Steps to Take If Your Small Business is Experiencing IRS Tax Trouble
It doesn’t take long to recognize if your business is on the brink of dealing with serious tax issues. Your finances will alert you immediately, and if you’re not on top of your business finances, you need to be. That’s usually the first sign of trouble. If for some reason, you missed it in your finances, the Internal Revenue Service (IRS) will sure be send you a notice if you’ve been delinquent in paying your business taxes. If this happens to be you, don’t panic. Certain steps need to be taken, so the best way to deal with a situation like this is to start with the little things—because they mean a lot!
- Gather all of your tax documents
With most government records being electronic, this step shouldn’t be too hard. Gather all of your business tax documents from 3 to 5 years ago. This is just a matter of logging in to whatever tax system you have been using to file your annual taxes and pulling up past filings. If you hired a professional to do it for you, they should have given you a copy of your tax filings. It could’ve been on a flash drive or a hard copy. If you don’t have this, then contact that tax consultant immediately to retrieve these documents. If for some reason, you’re unable to contact that person or company, find a reputable tax relief consultant who can get this information for you.
- Get Your Finances in Order
If you don’t do it now, the IRS is going to ask you to do it later, so you might as well be proactive and get your financial records organized. If you have to, dedicate an entire day to account for all of the incoming and outgoing funds in your bank account. Do what you can to make sure that there’s documentation for every transaction. Start by doing this by the month. Before you know it, you’ll have an entire year done. You’ll want to do this for a least the past three years. If what you owe to the IRS is quite substantial, you might want to have five years of financial accountability.
- Contact the IRS
The IRS appreciates you communicating with them. It shows that you’re taking an initiative and responsibility to resolve your tax matter. It also delays them from taking further steps like garnishing your wages or levy your property.
- Ask for a Payment Plan
Contacting the IRS isn’t good enough. There needs to be a plan of action. They will expect one, and if you don’t have a plan, they will suggest one for you. So it’s usually best to know exactly what you’re going to say to an IRS representative before calling, and it’s quite simple. All you have to do is arrange a payment plan with the IRS. Tell them what you can afford to pay on a monthly basis and they will work with you.
Considering Bankruptcy? Wait!
Some people think that bankruptcy is a way to get out of paying their tax debt. That isn’t always the case. Before you think about taking the steps to file for bankruptcy, call Success Tax Relief to schedule a free consultation about how we can help you alleviate your business tax issues without going to extremes measures. So contact us today!