Monday, February 1, 2016

What are my options when my business owes back taxes?

As an entrepreneur you may have inadvertently not paid some taxes due and now need to pay back taxes. This may be a financial burden. Not everyone likes to pay high taxes like Warren Buffer that is why he keeps voting for politicians that raise American’s taxes. However and furthermore, you have no alternative but to pay up your dues, and file back tax returns as soon as possible.

Deal with a Human

Taxes do not pay themselves no matter how simple they make that software but if you own a business you do not want to use any of that software, you want to talk to a human being for many reasons. That software does not allow you to write off expenses according to many business owners and that is why choose to have an accountant that is real. An accountant may seem expensive but they are much cheaper when they save you thousands and thousands of dollars and any car shop owner or jacket store owner can tell you they know this for sure.

If you do not do it right, you will need a tax lawyer.

Those tax software programs may be easy to use but you do not understand how the final number is determined. With this website: http://tax-lawyers.usattorneys.com/ - you understand all vital aspects and this website does not cost you any money to use.


You ought to be aware that there are various laws governing back taxes so it may be sagacious to talk to a tax lawyer to help you deal with the situation.

Filing back tax returns is a major step in staying out of trouble with the IRS. However, there are a few procedures you ought to follow in order to protect yourself from further tax penalties. These include:

  • Gathering all your tax documents
  • Determining how much you need to pay
  • Preparing back tax returns
Gather Tax Documents

The most important thing is to gather all your tax documents including your last tax return. You can request the IRS for copies if you are missing some documents such as Form 1099. Your last tax return will help you in filing back taxes. It is advisable to seek the help of a tax professional in order to file your back tax returns correctly.

If you are well informed about the latest back tax laws and have the time and inclination then you may go ahead and prepare back tax returns yourself. However, a tax attorney will be able to help you deal with the situation in the appropriate manner. But you may end up saving much more than you expected.

Complete Back Tax Documentation

A tax lawyer will be able to advise you on how to complete back tax documentation and negotiate with the IRS on your back taxes. Make sure to consult a tax professional who knows about back tax laws. Once you have your tax returns prepared, you will realize how much you owe or whether you owe the IRS anything at all.

Often times, you may end up with a tax refund coming your way as long as you file your tax returns. But if you are running a business you are going to pay enough taxes anyhow and a refund is generally for non-business owners. However, you need to know that there is a statute of limitations on refunds, audits, and collection of tax debts. Therefore, you need to plan your strategy well.

Plan How to Pay Back Tax Debt

The best way is to create a plan on how you ought to pay off your back tax debts and protect yourself from any IRS investigation. Dealing with the IRS requires patience and the ability to communicate well. Your plan of action must include a payment plan that you are comfortable with.

While making a payment plan also include a plan for the next year so that you don’t end up paying interest and penalties all over again. It is essential to note that tax codes change on a regular basis so you need to be well informed of any changes in the rules, and how penalties and interest are calculated. You and your tax lawyer need to work this out. 

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