Tax Blog

Unpaid Taxes: Here’s your Blueprint

Business tax rules are different than individual tax rules, as I’m sure many reading this are well aware. This blog will share some payment plan options and other steps to remedy your situation.

Streamlined Installment Agreement

The IRS allows for active businesses that owe less than $25,000 to qualify for what’s called a Streamlined Installment Agreement (SIA). SIA’s essentially take your tax liability and divides it by either 72 months or less if the Collection Statute Expiration Date (CSED) will expire before 72 months are up. You must make a payment on your liability before entering into the Installment Agreement to meet this criteria.

Offer in Compromise

If you are unable to pay your full tax liability or doing so would cause a financial hardship, you may qualify for an Offer in Compromise (OIC). This requires you to apply for an OIC and after review by the IRS, they may allow you to pay less than the total balance owed.

Temporary Delay of Collection

Finally, if you are unable to make payments of any kind to pay the taxes owed, you can request that the IRS labels your account as temporarily uncollectible.

The following information is only for general informational purposes only and is not financial, legal, or tax planning advice. Please consult with a tax professional if you have unpaid taxes.

For more information regarding unpaid taxes, please reach out to the Professionals at The Center for Financial, Legal, and Tax Planning Inc., at (618) 997-3436.



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