Not Paying Your 2021 Business Taxes
Updated: Nov 4
Don't forget to pay your business taxes! Business taxes are a necessary expense for any company, but what happens when you don't pay them? As a disclaimer, it's not pretty. The IRS isn't very forgiving if you fail to comply in regards to paying off your taxes.
One of the very first things you will notice from the IRS is that they will reach out to you through letter notices. If you do not respond to the letters, then they will start sending out a series of notices. Deciding to not respond or failing to pay the IRS will put you on their radar and will begin to initiate a series of measures to ensure they get their payments.
Penalties & Fees
When you ignore these notices, you will also realize that you have been imposed some interest, penalties, and fees. You may be liable to a 10-15% penalty for each month your payment is late, up to a maximum of 25%. If you have the money to pay them, then this may be a very good time to start thinking about paying it off. These penalties and fees will all accumulate over time which means that your tax bill is going to grow.
Liens, Levies, Garnishments
The IRS also holds the power to seize your business' property in order to get their payments. This may be one of the most hard-hitting actions that the IRS can take on your business. The IRS has the authority to levy any company equipment, vehicles, and even your business itself. If you fail to pay your tax obligation, the federal government may levy a tax lien against your company. This implies that if you are unable to pay, the IRS takes precedence over your creditors. If you try to sell your assets, the IRS will take the money before you can get it.
Can't Pay Your Business Taxes
Luckily for business owners and even individuals, the IRS offers a program that will help reduce or even eliminate back taxes that are owed to the IRS. You can avoid all actions taken from the IRS altogether through the program if your tax balance is too high to even begin with. There's a relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program. Our clients are referred to our Fresh Start Program in order to avoid bankruptcy, acquire debt relief, and settle their debts in a quick manner. Let us give you a helping hand today!
See if you qualify for the Fresh Start Program today! Resolve your tax debt before the IRS surprises you with late fees and penalties!
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