• June 27, 2017
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A report by Small Business Administration, a US government agency offering support to entrepreneurs and small businesses, shows that one-third of small businesses in the US close shop within two years of opening. One of the biggest reasons behind this, among others such as product or location, is huge tax debts. The IRS, however, rarely closes a business with outstanding tax debts, unless it has huge unpaid payroll taxes. If you run a small business and owe the IRS, there are ways to deal with the issue to prevent levies on assets and having to close shop. Speak to an experienced tax attorney at the Law Offices of Nick Nemeth to learn more.

In the meantime, here is what you need to know when dealing with IRS tax issues.

Contact the IRS Regularly

The first thing to remember when you owe taxes to the IRS is to regularly keep in touch with the central tax authority. Even if you can’t pay the entire amount, tell the IRS about your intentions and ask for time. Ignoring your tax bills will not help, as sooner or later, the IRS will get around to collecting the outstanding taxes. You may be charged penalties and interest. The bad news is, the IRS, does not require a court order to seize bank accounts or close your business.

Share Financial Information

If a tax collector approaches you looking for certain financial information, make sure to cooperate. This, however, does not mean that you have to disclose every fact. The idea is to make the IRS realize that you understand your tax responsibilities and not trying to evade paying outstanding taxes. Never lie to the IRS, and if you need professional help, seek a local reputable tax attorney.

Pay Heed to Warnings

Although the IRS rarely shuts down a business, you do not want to be avoiding any of its warnings. The central tax authority usually sends a number of collection letters before it levies a property or decides to shut down a business. Even after sending the Final Notice of Intent to Levy, it gives you a period of 30 days before taking any action. The last thing you want to be doing is ignoring these notices and warnings. So, the moment you receive the first collection letter from the IRS, speak to a local tax law attorney and take the right steps.

Options to Settle Tax Debts

Here are some of the options the IRS provides to small business owners to settle outstanding tax debts.

Negotiate a Payment Plan

Small businesses, like individual taxpayers, can negotiate with the IRS to settle their taxes in installments. If the IRS agrees to sign a payment plan with you, this may also stop their collection activities such as levies on property items.

Appeal for a Non-Collectible Status

Non-collectible status is an option that allows qualified applicants to pay their outstanding tax debts at a later time in the future. The option is for small businesses who are facing a financial hardship. Your tax obligations are still there when the IRS places your tax account under non-collectible status, and it may even charge penalties and interests for outstanding dues.

Offer in Compromise Agreement

An Offer in Compromise is another option for distressed small business owners to help settle their tax liabilities. A part of the IRS’s fresh start initiative, the program allows taxpayers to pay less than the amount of taxes they owe to the central tax authority.

Hire a Local Tax Law Attorney

If you think none of the options would be helpful, you may consider filing for bankruptcy as the last resort to wipe out or get rid of your tax debts. Tax attorneys at The Law Offices of Nick Nemeth can give you an insight into bankruptcy and the above mentioned IRS tax relief options. After evaluating your business’ financial condition, we suggest the one that is ideal for you. To schedule an appointment with one of our tax attorneys, call (972) 426-2553, or fill out our contact form, we will get back to you, shortly.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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