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.