Owing Back Taxes - Does Not Mean The End Of Your World

One of the most dreaded times for most Americans isproblem, especially if you don’t have the money to
April 15 – Tax Time. If you have ever fallen behinddo pay it in full? Tax relief solutions do exist but it’s
on your taxes, own a small business or are unable tobest to negotiate a tax repayment schedule and a
pay what you owe in taxes then you know this isplan for future payments to keep the government
especially true. I owned two small businesses infrom stepping in.
Southern California for over 20 years and believe me ITax Debt Relief Negotiations
know whereof I speak.The federal government would rather have a portion
Many people think owning their own business would beof what you owe and clear the books than to leave it
a dream come true, and I can tell you it is rewardingand have it grow by penalties and never get anything.
because for over 20 years I owned my ownIt is this that allows negotiating between the
company and enjoyed it very much. But one thinggovernment and the taxpayer. But it is better to have
most business owners fail to take into consideration isan experienced negotiator than to try to do it yourself.
what the IRS politely calls the “self-employmentYou will come out better off by having a third-party
tax,” which by another name is Social Security.negotiate for you. Think you can’t afford this?
That takes a big 15% bite out of every dollar of profitConsider the option again; you will be far ahead even
and if you fall behind on this its murder. If you work forwith the fee they charge. The IRS will not be looking
someone else you don’t feel it (the governmentout for your interest like your negotiator will, and from
planned it that way) because you only pay ½ thatexperience, the negotiator will know exactly how far
amount and your employer pays the other half.the IRS will go.
Owing the government money can be very scary andFinding an expert in the tax-negotiating field is a good
is serious business. Failure to pay and underpaymentfirst step in fixing the problem. If your bookkeeper is a
are the two most common problems. There is noCPA they can do this for you or will know someone
painless fix but the sooner it is confronted and solvedwho can. If your problem isn’t handled right serious
the better. The government does not like to wait forlegal troubles are on the horizon.
its’ money and sooner or later you may find thatEnsuring The Problem Is Solved In The Future
your bank account is seized and/or a lien is put againstThe next step in tax debt relief is planning for all future
your assets (like your home).payments to be paid promptly and correctly. The
The last year we were in business, before thegovernment is willing to work with a taxpayer the first
economy tanked in the early 90’s, we got behind intime but the same problem again the next year and
our taxes. One day we received a call from a vendorthe next year won’t get a sympathetic ear. So this
who said our check had bounced. We knew thereproblem must be handled properly. If you haven’t
was money in our account so we called the bank.filed taxes in years or are seriously behind on your
That’s when we found out that the IRS had frozentaxes it is imperative that you get the help you need
our account and taken all the money – and thereNOW! Consequences can be huge and one of the
was nothing we could do about it! Believe me, youbest ways to make sure it doesn’t happen again is
don’t want to get yourself into this situation.to have a CPA plan future payments. CPA’s might
Note: If you think bankruptcy will solve your problems, itcost a little more up front, but once you’re
won’t. Bankruptcy is handled in federal courts andaccounts are all straightened out their ongoing
the IRS just won’t recognize bankruptcy as a legalmaintenance fees are small compared to the fines
way out of your tax problem.you’ll incur by not doing your taxes at all!
So how does one go about solving their tax debt