Delinquent Taxes

Small business owners make hard choices daily.  Sometimes those choices are between bad and worse alternatives.  For example, a business may not have the cash available that it needs to pay its employees, its suppliers, and its taxes.  The owner reasons that employees won’t work, and suppliers won’t supply, if they’re not paid, but the government can wait.

Unfortunately, not paying taxes when due may solve a short-term cash flow problem, but it invariably leads to deeper, longer-term problems.  Interest and penalties on unpaid taxes often total more than the taxes themselves.  Even stricter penalties apply for not paying the government taxes withheld from employees – known as “trust fund taxes” – and the owner has personal liability for those taxes.  Finally, most unpaid taxes are not dischargeable in bankruptcy, though there are exceptions.

If you have unpaid taxes and a big federal or state tax bill, The Small Business Law Center ^® can help.  We have negotiated settlements and repayment plans for numerous small business owners with tax problems.  We won’t promise you settlements of “pennies on the dollar” like you hear on television.  The government evaluates settlement offers by looking at your present and future ability to pay, based on your financial information.  But we can help you get the breathing room you need to stay in business and pay off your taxes over time, while often getting penalties reduced.  In some cases, a Chapter 13 bankruptcy is the best option, because it stops interest and penalties on back taxes and allows the owner to pay off the taxes while dealing with other debt at the same time.

If your business is dealing with delinquent taxes, don’t wait until you receive the inevitable “Final Notice of Intent to Levy and Seize Assets.”  Call The Small Business Law Center ^® now to schedule a free consultation and see how we can help.