An Expert Worth, IL, CPA’s Perspective on Tax Problems
When running a business, one major roadblock you may encounter is taxes. This is an already complicated area on the personal finance front. Adding in the intricacies of a business further complicates taxes. Additionally, tax-related issues can escalate quickly, leading to financial strain or legal trouble if not handled correctly.
This makes engaging the services of an expert CPA in Worth, IL, absolutely important for long-term success. They can provide invaluable guidance in resolving tax problems before they become unmanageable. Specifically, here are some of the tax problems your business stands to face…
Non-Filed Taxes
Non-filing of taxes is one of the most common problems faced by businesses, especially startups experiencing rapid growth. Failing to file taxes not only leads to hefty penalties and interest but can also attract unwanted attention from the IRS. A CPA can help you get back on track by assessing your current financial situation, preparing your missing tax returns, and negotiating with the IRS on your behalf.
Back Taxes
Back taxes are unpaid taxes from previous years that can accumulate interest and penalties over time. This can be overwhelming for business owners, but an expert CPA can help you address back taxes efficiently. They will first assess the total amount owed and work with you to create a plan to resolve the debt. In some cases, a CPA may negotiate a payment plan or settle for a reduced amount with the IRS through programs like the Offer in Compromise.
Payroll Tax Problems
Payroll taxes can be complicated, and failure to meet these obligations often results in steep penalties. Many businesses, particularly those with small or newly formed teams, struggle with calculating, withholding, and remitting the proper payroll taxes. A CPA can manage your payroll tax responsibilities, ensuring accurate calculations and timely payments. In cases where issues have already occurred, they can work with you to rectify errors and deal with penalties.
IRS Levies
An IRS levy allows the government to seize your property or assets to cover unpaid taxes. This can be a frightening experience for any business owner, as it can jeopardize your financial stability. CPAs intervene by negotiating with the IRS to release levies and help you set up a payment plan to address the underlying tax debt.
IRS Liens
An IRS Lien against your property enters public record. This is a major red flag to creditors – indicating that the government has a legal right to your assets. Further, it severely damages your business’s creditworthiness, making it difficult to secure financing or new contracts. A CPA helps you navigate IRS liens by negotiating with the agency to reduce or eliminate the lien.
IRS Seizures
In more severe cases, the IRS may resort to fully seizing property to satisfy unpaid tax debts. This could include bank accounts, vehicles, or other business assets. A CPA is essential in preventing or resolving IRS seizures. They can work with the IRS to halt or reverse seizures while negotiating a more manageable payment solution.
Wage Garnishments
When the IRS garnishes wages, it deducts a portion of your income directly to cover tax debts. This can cause significant financial strain on business owners and employees alike. A CPA can assist by negotiating with the IRS to stop or reduce the wage garnishment. They will also work with you to address the root cause of the issue—unpaid taxes—by creating a resolution plan.
Tax problems often feel daunting. As a business owner, all you need to do is keep calm and reach out to a local CPA immediately. This way, you can identify strategies to not just alleviate the current problem, but also avoid recurrence entirely!
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