We’re just about a month away from the corporate tax filing deadline and two months away from April 15th, the personal tax filing deadline. If you haven’t started working on your taxes, or at the very least, handed over your W-2’s to your accountant or bookkeeper, then it’s time to think about starting the process.
One of the reasons so many people wait is the stress of knowing they might owe the IRS money and can’t pay it. Do you or your business fall into that category? If so, here are some things you should do if you owe the IRS money:
- PAY UP – As the saying goes, there are two things you can’t avoid, death and taxes. Have you been ignoring IRS letters about the money you owe the government because you can’t afford to pay? I’ve had many phone calls from people asking me how they can avoid payment. Bottom line, you can’t.
- ASK FOR AN INSTALLMENT PLAN – So what do you do if you can’t afford to pay the IRS? You need to set up a payment plan. The IRS allows anyone who can’t pay in full, to create an installment agreement. If you can pay within four months, there’s no setup or deduction payment fee. Most of the time, you can negotiate or let the IRS know how much you can afford to pay every month. If you don’t give the agency an amount, your minimum payment will be the amount that you owe divided by 72.
- HIRE AN ATTORNEY – If you have a bookkeeper or accountant, you should be able to work with him or her on your IRS tax payment. In extreme cases or in the case of an audit, you may need to hire an attorney, who specializes in IRS cases. We usually introduce our clients to Steve Klitzner, P.A., who is one of the best experts specializing in resolving IRS problems. E-mail me and I will arrange for a personal introduction.
- PLAN FOR NEXT YEAR – The only way to avoid owing the IRS money is to plan for it. Your bookkeeper or accountant should provide advice regarding how much you and your small business should be withholding for taxes well before the deadline rolls around. If you’re not getting this advice, then e-mail me and the Brigade Bookkeeping team can start helping you today!
Paying taxes, just like dying, is something no one looks forward to. But if you’re small business owner, who is worried about tax payments, do something about it now. Call our team and let us help you work through your tax troubles. In the meantime, remember, you have about a month until the corporate tax filing deadline. Get to it!