Small businesses need to consult legal professionals from time to time, and when taxes are involved, especially delinquencies in your taxes, then you might need a tax attorney. Here are a few instances that should urge you to consult with a tax attorney so you can get the best outcome possible:
You’re late in paying your back taxes, and the IRS is collecting.
Once you receive a collection notice from the IRS and you know that you weren’t sent one in error (i.e. you’re really behind on your tax dues), you better consult a tax attorney right away. The professional can help you explore your options and guide you on your next actions.
You can’t afford paying your back taxes in full.
If you don’t have enough financial resources to pay back the debt or if doing so will bankrupt your business (or even eat up your personal savings), you should consider applying for an offer in compromise, which can allow you to settle the debt for less. An IRS tax lawyer can assess your eligibility and facilitate the negotiations.
Your bank accounts have been levied, and liens have been issued.
If you let your back taxes go unpaid for too long, the bank accounts and assets of your business can be levied or have a tax lien attached to them. You could risk losing all your properties and your business altogether, so it’s advisable to work out your tax debt settlement with a lawyer immediately.