PROPER STATUS FOR FILING BUSINESS TAXES
March 24, 2022 - Douglas Myser
Proper status for filing business taxes. Whenever someone decides to open up a business, they should at some point stop, and determine what status the business should take. Why ? Well because we have spoken to hundreds of business owners over the last 36 years who did not do that very simple thing, and went on about their merry way, to have several years go by, then casually file tax returns, only to the IRS slap major penalties and the subsequent interest that goes along with it, due to improper filing, or in a worst case scenario, deny the returns altogether, and the business owner then has to re-file, taking up time, effort, and money, to get it right. So take the time to do it right, and if you don't know how, consult with someone who does. Proper status for filing business taxes.
We had a business owner call us, a partnership, that had the IRS contact them on tax returns that were over 7 years old. They were the wrong status. The partnership was dissolved, and the remaining owner was going to be on the hook as the other owner left the country. The CPA who filed wrong, didn't want to give the records to the owner for fear of liability. We told him how to get the records and solve his problem, but if it was handled properly from the start, which in this case was not, it would have saved him alot of unnecessary stress. That case took over 16 months to solve.
If you don't want to have to hire a Tax Resolution Service firm, or end up with a IRS Wage Garnishment, due to the IRS going after you, do your self a favor, understand the type of business taxes you will have to pay form the start. Income taxes, excise taxes, self-employment taxes, use taxes, property taxes, excise taxes, these are some of the taxes you need to determine before you get into trouble and need Tax Relief from the IRS. If you do end up with IRS trouble, we can help with the IRS Fresh Start Program. We can also help new business owners determine the type of taxes they will face, and set up your accounting needs from the start.