How to Repay Unpaid Sales Tax Debt?
Posted by Joseph Franks on September 30th, 2019
Paying taxes is the duty of every citizen of the US. Unpaid taxes pose a danger to the person as well as to the company. It is essential to ensure that tax debt is paid otherwise the person or business should be ready to face serious consequences. The issue of unpaid sales tax usually arises when the customers have paid the taxes but the company has not transferred the funds to the relevant party. The business in result may face certain consequences if these debt issues are not resolved.
In order to make sure that these taxes have been paid, few options are available that may be considered to reduce the debts. When the process of sales tax is disrupted, the owner is liable for the repayment for these debts or have to pay additional fees.
There are several options to repay the debts that may be utilized by after consulting tax lawyer, such as:
Refinancing the Debts:
For a person, it is possible to refinance a home. Similarly, a business can also have the same option by refinancing a loan or a property, the business owner can replace one debt with another. Although this is a temporary solution, however, this allows the company to buy time to repay the debts. In case, the company is receiving sufficient revenue, it only has to pay off sales tax to minimize or diminish the penalties. When the owner has time to pay off the debts, the refinancing loan can be removed.
Debts Payment through Installments:
The company should consider making a deal to avoid criminal charges and penalties when sales taxes are past due. This can result in an installment agreement which is only done through communication. It is essential for the business owner to contact the local authorities to conclude some arrangement. If the business owes ,000 in taxes, online processes is also an option, but if the amount is greater, the agent must be hired.
The Option of Offer in Compromise:
In case of struggling businesses, the IRS may accept a lesser amount than the full by an Offer in Compromise. For this option, there are few factors to be considered such as being able to pay what is needed, acquired income of the company, expenses of the business owner and equity or assets that the company possesses.
This option is acceptable when the repayment cannot be made within a certain time period. This may be the last option to consider, so research well before considering it.
If there are no options available, the business owner can consider insolvency. It is essential that the person contact the IRS and communicate his or her situation. Without contacting an official, the person may incur additional fee or penalties. There are online tools to help you understand what is owed, how to access online options, and who should be contacted exactly. Those who are looking to resolve the issue can see this information easily.
The assistance of Tax Lawyer:
If you think no option is beneficial for you, you can consult a tax lawyer, the layer will help you discover the best course of action and the best solution with minimum penalties.
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About the AuthorJoseph Franks
Joined: September 16th, 2019
Articles Posted: 101
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