When You Owe $$ to the IRS

When you’re a business owner who is in debt to the IRS, it’s easy to feel very alone and like you’re the only business that has ever found itself in this position. However, nothing could be further from the truth; a great many businesses have found themselves, at one time or another, indebted to the IRS. Contrary to what you may think if you have found yourself in this situation, this is not a mark of failure on your part. It is just something that happens, even to the best and most organized businesses, from time to time.

Sometimes, IRS debt happens as the result of true financial problems.Maybe something happened that caused your profits to go down, or maybe a series of “somethings” happened that landed you in a position where you were unable to pay your business taxes. Family tragedies, economic downturns, a slew of clients who refuse to pay, and other issues can all lead to being in debt to the IRS. Other times, making a few simple financial or even accounting mistakes here and there can add up, leading to owing money and potentially even facing legal and/or financial consequences as a result of these innocent mistakes

Regardless of the reason for your “fall behind,” the IRS certainly doesn’t make it easy or less intimidating to be in this position. Though it recently tried to soften its approach and referred to collecting on back taxes as a way to help the economy and the tax system in general, it can still be quite aggressive when it comes to enforcing compliance for businesses, which can easily make you feel fearful and anxious for the safety and security of the business you have worked so hard to build.

However, you should know that you do NOT have to go through this process alone. In fact, it’s better if you don’t. If you are in debt to the IRS, find a financial adviser who can assist you and walk you through the process of “getting right” with this government agency. Having support and, even more importantly, expertise on your side will make all the difference. By choosing not to go through the repayment process alone, you are saying “no” to fear and anxiety and “yes” to clarity, peace and understanding, and what could be better than that?

Wednesday, July 20, 2016