1. Installment Agreements for Businesses
- Allows you to pay your tax debt in monthly installments.
- Available for businesses that owe $25,000 or less in payroll taxes.
- Payments are typically made through direct debit to avoid default.
2. Offer in Compromise (OIC) for Businesses
- Settle your business tax debt for less than the full amount owed.
- Must prove that paying in full would create financial hardship.
- The IRS reviews business income, assets, and future earning potential.
3. Currently Not Collectible (CNC) Status
- If your business cannot pay without shutting down, the IRS may temporarily pause collection efforts.
- Interest and penalties continue to accrue, but the IRS won’t levy assets while in CNC.
4. Penalty Abatement
- If your business has a good compliance history, you may qualify for first-time penalty abatement.
- Reasonable cause arguments (such as natural disasters or economic hardship) may also reduce penalties.
5. Trust Fund Recovery Penalty (TFRP) Defense
- The IRS can hold owners, officers, or even employees personally liable for unpaid payroll taxes.
- A tax attorney can defend against improper TFRP assessments and negotiate with the IRS to protect your personal assets.
Why Professional Help Is Critical
Dealing with the IRS as a small business owner is not the same as handling personal tax debt. The stakes are higher, and the IRS is more aggressive when payroll taxes are involved. A tax attorney for small business IRS debt can:
- Negotiate directly with the IRS on your behalf.
- Protect your personal liability in payroll tax cases.
- Help you choose the best relief option for your business.
- Develop a long-term compliance strategy to prevent future problems.
Conclusion
If your small business owes the IRS, you’re not alone—and you’re not without options. From installment agreements to Offers in Compromise and penalty abatement, there are solutions available to help you regain control. The key is to act quickly before the IRS escalates collection efforts.
Contact our office today for a confidential consultation. We’ll help you explore your IRS debt relief options and protect both your business and your personal assets.
Disclaimer:
This post does not constitute legal advice and does not create an attorney-client relationship, it is merely a general discussion of points of the law and may not be complete or up to date. Please contact our office for a consultation to discuss how tax laws may be relevant to your specific situation.