Let’s be real: Taxes aren’t always the easiest to manage when you run a small business. Despite your best intentions, you may still end up frustrated and upset because you found a surprising letter in the mail saying you owe money for taxes.
Avoiding tax payments may be the worst thing you can do, but what other option do you have? Here’s what you should know:
You may not owe what they say you owe
Just like anyone else, the IRS can make mistakes, after all, IRS workers are only human. So, if you’re positive you made the correct tax payments, then you may not have anything to worry about.
The IRS handles millions of tax returns each year – and a growing population may only be making their process harder and longer. If they haven’t read your tax return yet, then your tax payment notice may not be accurate. If you’re unsure where you stand with the IRS, then you may consider giving them a call.
You may have made an honest error
You may come to find that you do, in fact, owe money to the IRS. While this may cause you stress and frustration, you shouldn’t panic. There are a lot of boxes to check when filing taxes, so your issues may have been caused by a minor error.
Your letter from the IRS may just be a notice letting you know you could expect problems if you don’t make changes to your tax returns or pay the bill issued. Responding too late to an IRS tax letter could leave you with interest and penalties on your bill.
If you’re unsure how to respond when correcting your taxes, then you may need to know your options before greater interest penalties are assessed.