While most debt is difficult to avoid, the messiest type is income tax debt. This is especially true if you own and operate a small business where one mistake could cost you dollars in back taxes.
Fear not, the Debt Ninja can show you how to avoid tax debt to the IRS as you cannot file bankruptcy on anything federal. Fortunately, the government is classified as a nonprofit, so they can be easy to work with if you communicate with them and make an effort to pay your taxes.
The taxes are not that much of a burden if you understand the system and how it works. You can simplify it by educating yourself on the system you live under.
Even though the Internal Revenue Service (IRS) focuses more on those individuals, who owe them millions in back taxes, you still want to be as honest as possible about your taxes. One reason to do so is for the tax benefits and breaks of running a small business. Just like individuals receive exemptions when they file once a year, so do small businesses, sole proprietors and partnerships alike.
As the “little man” you should strive to be honest in reporting your taxes, but this article will focus more on those businesses that have to pay in five figures (about $10,000 and up) or more per year to the tax collectors. Failure to stay on top of income tax advantages if you operate a business this size can result in being hit with enough taxes to shut your business down.
The Debt Ninja outlines possible worse case scenarios for not keeping up with the IRS rules and regulations. Failure to comply with IRS rules and regulations, and not settling your tax debts, can result in:
Fortunately, it does not have to be this difficult. All the information you need to know can be found on the website of the IRS (www.irs.gov) or through the Small Business Administration (www.sba.gov). Not to mention, the Debt Ninja has many associates in financial services who can explain what you need to know in greater detail simply by asking.
You can also hire a CPA, who gets paid to study the system and writes their services off as a business expense. But if you want to keep expenses low you can also educate yourself by being resourceful and knowing where to look.
Another option concerning your income tax debt is to arrive at a full compromise with the IRS or have them place the money you owe into a non collectible status if you should qualify for such.
If you owe $10,000 or more to the IRS or State – Your best option is to contact the Debt Ninja so he can guide you to the right resources and resolve your tax debt.
Call the Debt Ninja toll free NOW and watch him take on the tax man for you.