Having IRS debt can be hard on you as a business owner. You may be under a great deal of stress trying to figure out the best way to handle it. In addition, you may be considering all your options on how you can move forward. One of the options you have open to you is entering a program for IRS debt relief. There are several reasons why this option is right for your business.
Keep Your Business in Operation
Image via Flickr by Numinosity
One of the biggest reasons it can be beneficial to move forward with an IRS debt relief service is that it can help you to keep your business open. In fact, 29% of small businesses that shut down did so because they didn't have enough money to continue operating, while 82% had cash flow issues. Owing a debt to the IRS can have an impact on your business finances, especially if you don't work to solve the problem.
You may believe it's easier for you and your company to close down, even temporarily. However, that can make it harder to handle this debt. You'll no longer have income coming in to cover the tax debt and your regular bills. IRS debt relief may allow you to avoid this problem.
Eliminate Potential Fees and Penalties
Another benefit that can happen when seeking out professional help with your tax issue is that he or she can help in resolving this matter before you start experiencing additional fees and penalties. When you're faced with tax debt problems, seeking out the help of someone with experience in working with the IRS can make a difference. The longer you let your tax problems sit, the more likely you're increasing the amount of money you'll owe.
The sooner you're able to start working with an IRS debt relief service and the IRS, the less likely you'll have late penalties and fees tacked on. Often, making an effort to start this process can show your willingness to work towards a resolution.
The Possibility of a Reduced Amount Due
A final benefit that can happen when seeking out professional help with your tax issue is that they can help with negotiation because of their prior experience working with the IRS. Depending on your situation, they may be able to get you a reduction on the amount of taxes you owe.
For instance, you may be able to qualify for an Offer in Compromise where you can work out an agreement with an IRS to settle the debt you owe. This settlement can potentially be for less than you originally owed to them, and the effort can allow for your company to get back into good standing. This reduction may make a difference in how your small business can move forward.
When handling IRS debt, it's often in your best interest to explore all the options open to you. Protect yourself and protect your business by taking some time to evaluate each option. Don't overlook the potential of a quality debt relief service to assist you in moving forward with your IRS debt.