A healthy relationship with the Internal Revenue Service (IRS) is crucial for any business, and one of the best ways to do this is through tax compliance. However, even a minor misstep can lead to a significant tax burden, and the next thing you know, you owe the IRS more than $50,000 in tax. If you are a business owner, the last thing you want is the IRS to go after you for unpaid taxes.
A huge amount could mean huge consequences
When your back taxes amount to $50,000 or more, the IRS will most likely use advanced collection efforts to collect their money, including, but not limited to:
- Placing a lien on your business assets, which will effectively freeze your access to credit
- Seizing funds directly from your business’ bank accounts
- Seizing and selling your business’ properties
- Telling the U.S. State Department to revoke your passport
The options vary from case to case. But in general, without access to potential capital funds and a crippled workforce, you likely will find yourself in worse business and personal circumstances.
There are ways to solve this problem
In case you unfortunately find yourself in such a situation, you have resolution options such as payment plans, installment agreements, offer in compromise, penalty abatement and others that an experienced tax lawyer may be able to discuss with you.
But, as always, prevention is better than cure, even with taxes. This may include maintaining a meticulous record, seeking professional tax guidance and filing taxes on time even if you cannot pay. So, do not wait and check your taxes as soon as possible.