Resolving the issues that arise from being delinquent on Business Payroll Taxes is no easy task. However, in the mid 90s provisions were added to the Taxpayer’s Bill of Rights. They were designed to help Small Businesses that were just starting out. Don’t be intimidated by daunting Tax Laws. You still have your Taxpayer Rights.
You can Appeal: Many Business Owners are unaware that they still have rights as Taxpayers. You have 60 days from when you get notice from the IRS to file an appeal. Appealing will buy you time, but it's not a permanent solution. However, the extra time will allow you to consult with a Tax Professional or seek Professional advice.
First-Time Offenders: There’s a law in the Taxpayer’s Bill of Rights designed to help fledgling Small Businesses. According to this law, the IRS can forgive the harsh penalties imposed when Small Business owners fail to deposit payroll taxes on time. But this only applies if you are a first time offender. The IRS can also abate penalties applied for sending the payments directly to the IRS instead of depositing it to the correct bank.
Paying Tax Debt: The truth of the matter is, Appeals rarely work. And even if you’re a first-time offender, penalties and debt imposed by the IRS may not be forgiven. When this is the case, it is important to pay off the Tax Debt as soon as possible. If the debt is not paid off in a timely manner, the interest accrued every month can double or even triple the debt. If the option of paying off the Tax Debt in full exists, it’s imperative to act on it and pay it off as a priority.
There are many land mines that come with the otherwise relative independence of being a business owner. It’s a good idea to hire Bookkeepers and Accountants to help relieve the stress and burden of dealing with IRS Issues. And if all else fails, you can seek advice from a professional.