If your small business owes delinquent payroll taxes , consider this option: Apply for an I n-Business Trust Fund Express Installment Agreement. Firms that owe $25,000 or less in payroll taxes can enter into this installment plan to pay their debt over 24 months without having to give financial information to IRS. Businesses that owe more can pay down their tax debt to $25,000 and then apply. Firms owing between $10,000 and $25,000 must let IRS debit their bank accounts each month for the funds.
While the agreement is in place, all required tax returns must be filed and firms must remain compliant with their payroll tax obligations. To apply, call 800-829-4933 or the number listed on the bill sent by the Service.
Promises to settle your IRS tax debts for pennies on the dollar are just that: Promises. IRS will look at your income and assets and will accept an offer to compromise a tax debt only if paying it in full would create major financial hardship. The Federal Trade Comm. warns that many people have reported problems with firms that hawk tax-debt-relief plans. Some companies charge big up-front fees and then fail to send IRS the paperwork. While tax debts may be settled cheaply if the money owed is large and the filer has few assets, that isn’t the typical situation with back taxes.
Remember the adage that if something sounds too good to be true, it usually isn’t true.