Tax Collection Defenses for Business
Your business is your livelihood, your life’s work. Tax debt can threaten to damage, even destroy it.
Worse still, depending on your choice of entity those debts may well spill over from the business to your personal assets. For the sole proprietor, partner, or LLC member the tax collectors may take not only your career but also your home and savings.
If trustee taxes (sales, meals, employment) are owed the tax collectors may be able to come after you personally, even if you operate your business as an S- or C-corporation. If the corporate niceties haven’t been observed the IRS or DOR may try to “pierce the corporate veil” to collect even ordinary income tax from you.
In any tax controversy it’s important to challenge the amount the IRS or DOR claims you owe. But once that’s settled liens automatically attach to your property, business and perhaps personal as well. In a seizure, the tax collectors will suddenly appear with law enforcement, shut down your business, and padlock the doors.
It doesn’t need to come to that. Even if you can’t pay the amount owed in full you can still protect yourself and your business.
- It may be possible to negotiate a payment agreement, by which the amount owed will be retired over time.
- If it appears the full amount may never be paid the IRS or DOR may agree to forgive a portion or even all of the tax debt
- If there remains a disagreement as to the correct tax owed, the IRS or DOR may accept a smaller amount by way of settling the dispute
- There are strict rules about how collections may be undertaken and, if violated, a challenge can bring matters to a halt until changes are made
Tom is experienced in all these matters and can provide the advice, expertise, and advocacy you need to address and resolve your present tax situation.
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Did You Know?
If a lender forgives all or some of a debt owed, you may well have to pay income tax on the amount forgiven.