Your business was on a roll! Five years of great sales and profits. You had money in the bank, suppliers paid with discounts, and your personal paycheck was making your spouse very happy. It doesn’t get better than this.
Then it hit:
· Economic slowdown. Lower sales. Collections drop. Inventory piles up.
- Unexpected legal expense
- Major employee leaves
- Major product line problem
- New competitor slices into sales
- Large customer drops you
- Natural disaster
Maybe it is one of the above. Sometimes it takes more than one to create the cash flow crisis. The cause is only slightly relevant. The reality is that you don’t have the cash needed to make your IRS payments. The issue might only be your income taxes. But your situation could be compounded by missed payroll tax deposits, and even state income, payroll, and sales taxes.
If the economic interruption is protracted, losses may begin to exacerbate the issue. While these losses may reduce future tax obligations and even be used to reduce prior year obligations, they do nothing to help with payroll tax obligations, either corporate or personal.
Don’t expect a sympathetic ear at the IRS. If anything they will be worried about not getting their share if you go bust. Liens and levies can further complicate your efforts to get your business back in shape.
You need a tax professional like the Enrolled Agents at Demetriou, Montano, and Associates to help guide you through the process. We know what to say to the Revenue Officers, and more importantly, what not to say. After 25 years helping businesses like yours in situations just like the one above, we have the tools and skills to keep the tax man happy while you rebuild. Call right now at 888-987-1040 and sleep better tonight.