Tax Problems for Small Business and Self Employed

Tax Problems for Small Business and Self Employed

A small business is often a target with the IRS. Should you owe the IRS delinquent income taxes, have payroll tax problems or have unfiled tax returns, A revenue officer is capable of showing up at your business or doorstep unannounced. They will not waste time when requesting information about your firm income and personal finances. In the event you find yourself within this situation, ask the IRS revenue officer to allow you time to get your financial information together. In case you may have do not have your records and will need account statements or tax returns for previous years, get in touch with the IRS and ask for account or tax return transcripts.

Should you have unfiled tax returns that need to be processed, ask for wage and earnings transcripts. An account transcript will list adjustments you or the IRS created after your tax return was filed. A tax return transcript list line items from your return as initially filed. A wage and income transcript list W2 wage information, 1099 earnings, retirement distribution revenue, stock sales, bank and mortgage interest paid. Wage and income transcripts can be utilized to prepare unfiled tax returns up to ten years.

In the occasion you get an IRS notice showing back taxes owed and need to communicate together with the IRS prior to them showing up at your business or home, attempt calling the number on the notice as soon as possible or get a professional tax advisor to deal with your tax problem. Should you be unable to resolve your tax issue with an IRS employee or revenue officer and need representation, attempt contacting a CPA, Enrolled Agent (EA) or Tax Attorney in more serious situations. For anyone who is self-employed and now owe back taxes to the IRS, you may expect many notices such as wage and bank levy notices and tax lien notices until you pay the delinquent income taxes. Should you ignore these tax notices, you could be facing a wage levy or garnishments, bank account levy and asset seizures or maybe a federal tax lien on real estate assets. The IRS may also intercept income owed to you for products and services.

You can find quite a few alternatives when working with the IRS on your tax problem. Depending on your financial situations, you may negotiate a payment plan to pay off your tax debt. You can also amend tax returns prepared by the IRS to get many of your important deductions permitted to self employed tax payers. In the occasion the IRS files your return, they might only file fundamental deductions and overlook the many expenditures of the company. They may also overlook the cost of trade sales and only bill you for revenue received.

There are other possibilities made available if taxpayers are experiencing financial hardship including an offer-in-compromise or non-collectible status until your circumstance improves.