The IRS tells you that your business owes $100,000 in back taxes. You have no idea what you’re going to do. Yes, you made some tax mistakes, but that doesn’t change the fact that your company is not sitting on $100,000.
You just started this business, and you’re trying to make ends meet. Are you going to lose everything over those tax errors?
Installment plans can help with taxes
The good news is that the IRS may let you pay your taxes off over time, using an installment plan. For instance, if the maximum you owe really is $100,000, you can set up automatic withdrawals for 180 days or less. You get to schedule out how much you’ll pay and when you’ll do it, as long as you pay back the entire amount you owe by the end date.
The IRS does this to keep people from compounding the errors. If you knew you couldn’t pay and had to do it at once, you may be tempted to commit fraud to make it appear that you didn’t owe as much. If you knew you had a way to spread those payments out and make them manageable, you’d be less likely to do so.
This is also not the only option. In some cases, the IRS will take an offer in compromise, allowing you to pay less than you owe — without retaining the remaining debt. Every situation is different, but it pays to know what options you have.
Get started on a resolution for your tax problem today
Tax concerns are very real and could harm your new business. If you’d like to get started by looking into your options, we can help.