No one likes dealing with taxes, but it’s an unfortunate reality of owning a business. If your small business has tax debt, taking care of it as soon as possible is important to avoid penalties and interest charges. The good news is that the IRS offers a few different options for businesses that can’t pay their taxes in full. Here’s a quick overview of what you need to know.
IRS Payment Options for Small Businesses
If you can’t pay your taxes in full, don’t panic—the IRS offers small businesses a few different payment options. One option is an installment plan, which allows you to make monthly payments over a period of time. Before applying for an installment plan, you should speak with an experienced tax debt relief attorney.
Another option is called an Offer in Compromise (OIC). This is basically a negotiation between you and the IRS where you agree to pay less than the full amount owed. To be eligible for an OIC, you’ll need to prove that paying the full amount would create financial hardship for you or your business.
You can also request that the IRS temporarily postpone collection action if you need more time to come up with the money. This will give you some breathing room, but keep in mind that interest and penalties will still accrue during this time.
Seek Legal Guidance
Dealing with tax debt can be stressful, but it’s important to take care of it as soon as possible. The IRS offers several payment options for small businesses, so there’s sure to be one that will work for you. If you have any questions or need help getting started, please don’t hesitate to contact our office. We’re here to help!
Get in touch with us today at (813) 229-7100 to schedule a consultation!
