When you own a small business, there is a great deal of responsibility on your shoulders. This includes dealing with tax problems that arise relating to the business. For many business owners, facing the IRS over unpaid taxes is an intimidating experience. It is important to note, however, that how you handle yourself can go a long way towards the eventual outcome of your problem.
5 Helpful Tips When Dealing With the IRS
Facing a problem with the IRS relating to your business? Check out the following helpful tips:
- Practice good communication. Stay in regular communication with the IRS to avoid increased penalties and interest. The longer you ignore your problems, the more expensive your tax problem becomes. It also may make it more likely that the IRS will seize your assets.
- Be patient. Remember that time is generally on your side when it comes to dealing with the IRS. The agency is often slow to react once the process begins. This gives you increased time to strategize and to consult with your attorney. It could be months before you actually have to meet with the IRS in person.
- Be helpful and cooperative. Unless your attorney advises you otherwise, you should be cooperative when dealing with the IRS. This means providing financial information requested by the IRS collector. It is important to consult with your legal advisor, however, because full disclosure is not always a good idea. You are not legally required to disclose information about your finances or assets unless you are served with a summons.
- Do not be overwhelmed by threats. While the IRS is known for threatening to shut businesses down, this threat does not actually come to fruition in most cases.
- Request an alternative solution to your tax problem. Many taxpayers do not realize that there are ways to resolve their tax problems that do not always involve paying the debt immediately and in full. Examples of alternative solutions that may apply to your case include asking for a payment plan or discount, obtaining an offer in compromise, requesting “uncollectible” status, and bankruptcy.
If you are facing a problem with the IRS, we can help. To learn more, we encourage you to check out our client testimonials today.