Americans are often warned about the dangers of starting a new business. We are told that ninety percent of them fail within the first year. But even so, new businesses open each day in America. There are nearly thirty million of them, according a recent estimate by the Office of Advocacy. Most of these businesses, over ninety-nine percent, are small businesses.
Starting a small business in America is incredibly risky. New owners need the right business plan, a dedicated staff, and typically money from the bank. They must also be meticulous when it comes to their taxes. Because there is more room for error and dishonesty, businesses are audited at a much higher rate than individual taxpayers. At the end of these financial examinations, many new owners are saddled with tax debt.
Few new businesses can survive owing money to the bank and the IRS at the same time. It is, of course, important to pay both. With that said, IRS back taxes are arguably a more pressing concern because of the collection tools the government agency has access to. Depending on how the business is set up, the Internal Revenue Service may be able to use a tax levy to seize personal possessions, including homes, and then sell them at public auctions to reduce or eliminate tax debt.
Call Tax Masters now!
Without the right tax advice, a business that owes the IRS is probably not long for this world. The new owner may not only see her dreams dashed, but she may also lose her home if the IRS executes a tax levy to collect back taxes. An experienced tax advisor may not be able to eliminate tax debt, but she will be able to open up a dialogue with the IRS. In short, there is a much better chance of preventing or lifting an existing tax levy with the help of a tax advisor.
Tags: Back Taxes, irs back taxes, tax advice, tax advisor, tax debt, tax levy