“My tax problem is…
My business is having tax issues!”
“The BIGGEST Risk You Face when Your Business Has an IRS Problem…and What To Do About It!”
Business tax problems are more and more common in this economy! On top of paying employees, paying the bills, paying yourself…lots of business owners are finding themselves with “more month at the end of their money!” How can you possibly pay Uncle Sam if your business is facing a downturn and can barely afford to pay all of its other obligations?
And so beings your business’ tax problem with the IRS.
Business tax problems usually come from 1 of 2 things, and 90% of the time, it’s from the second one:
#1- Delinquent income taxes or penalties.
This usually only applies if your business is organized as a C corporation (not too many small businesses fall into this category these days!), because as you know, all other business entities have pass-through taxation, where the owners directly pay the tax on it.
Also, if you are a partnership or S corporation, and you filed late, you were the proud recipient of some failure to file penalties.
Like I mentioned though, these delinquent income taxes / penalties are not what’s affecting most business owners right now. And if this is your tax problem, you can consider yourself “lucky”, because these taxes are tied to your business, and cannot be assessed against you directly!
#2 – Employment tax remittances
If your business did not remit payroll taxes to the IRS for its employees, you should know that the IRS considers collecting these types of “trust fund taxes” as one of its top priorities! Why?
Because if you don’t pay them over, the employee still gets credit for paying them!
It’s a double whammy for the IRS…not only do they not get the money, but they still have to give your employee the same benefits as if they had been paid over!
Needless to say, when the IRS starts to catch a whiff that a business is not paying over its payroll deposits, it will usually start to move very fast. The process starts with sending a couple letters. If those are ignored, the case is assigned to a local Revenue Officer (an IRS collections agent for lack of a better word), who then makes an unannounced visit to your business!
So what is the BIGGEST risk that you face when your company is delinquent on its taxes?
The problem with having payroll tax issues is that, in most cases, the IRS is going to look to charge you (and other responsible parties in your company who willfully failed to pay over payroll taxes) personally for 100% of the trust fund portion of the employment taxes! (The trust fund portion is defined as the part that is the employee’s income tax, and the employee’s share of FICA).
That’s right…you personally!
And what’s worse is that the bar for doing this–the threshold that the IRS has to meet in order to “prove” that you are a responsible person who willfully failed to remit payroll taxes–is extremely low!
Basically, you can guarantee that if you are a company owner (or a high level financial employee!), and you were somehow involved in the financial policy of the company, you will be targeted for the trust fund recovery penalty!
So what can I do about it?
In our special report on business taxes, I spill the secrets of 3 specific strategies you can consider when dealing with a business tax issue. If you want to know what those are, and want to know how to permanently resolve your tax debt to get the IRS out of your life, once and for all, scroll down to download it!
I will warn you though: business taxes and the trust fund recovery penalty are 2 of the most complex, “playing with fire” areas of IRS collections matters! If you’re facing problems in these areas, I highly recommend you work with a professional to solve them. (Our reports are a great start!)
So download our report below to learn the next steps!