If a business in Georgia owes back taxes to the IRS, it has several options to resolve the situation. Throughout the process, business owners should stay in touch with the IRS and be honest about their situation. If they try to avoid the IRS, they might find themselves facing harsher penalties than they would otherwise. The IRS might also threaten to shut down their business altogether.
When negotiating the payment of back taxes, business owners can ask the IRS for a payment plan. This can make the payments more manageable. However, if they default on this plan, the IRS will probably not let them set up another one.
Business owners can also request a compromise from the IRS. They can fill out paperwork that gives the IRS extensive information on their situation and request that the IRS accept only a percentage of the taxes owed. A business owner can also request an abatement of penalties, which reduces the amount they have to pay back. However, this is a complicated process that might require the assistance of an attorney.
As a last resort, the business owner can file for bankruptcy to have some of their back taxes wiped out. The IRS might also temporarily grant them “uncollectable status,” which gives the business owner more time to get their payments in order. However, interest will continue to accumulate during this time.
A business owner who has trouble paying their back taxes might be interested in speaking with a lawyer. The lawyer may be able to help them negotiate with the IRS, resulting in reduced payments, a payment plan or a compromise. If necessary, the lawyer might also help their client file for bankruptcy to wipe out some of their major debts.