What Should You Do If You Forget To Pay Your Commercial Taxes?
Forgot To Pay Your Commercial Taxes?
So you’ve been too busy running your business and filing your taxes has possibly slipped your mind. What’s next? Will the Internal Revenue Service (IRS) appear at your doorstep? Will the IRS levy your bank accounts or garnish your wages?
Not filing or paying taxes can be very costly. Under severe circumstances, you can lose your property or even face jail time if you’re found guilty of tax invasion. How does this happen? What begins as a bill and critical letter warning from the IRS can lead to a tiny penalty within a couple of months. This will soon balloon into a huge fine with accrued interests.
When this occurs and you still don’t pay your taxes, the IRS can proceed to garnish your wages, levy your bank account, or place a lien on your assets and property. If you try to evade paying your taxes owed, you can be found guilty of tax invasion which can include heavy fines and jail time.
Even though the consequences of not paying your commercial taxes are severe, the important thing to remember is that the IRS just wants you to pay what you owe. If you show a willingness to pay your taxes, then you won’t have to worry about such severe consequences. The last thing that the IRS wants to do is to put you behind bars. Putting you in jail doesn’t give the IRS what it wants which is the money you owe.
So how can you avoid harsh punishments for forgetting to make your tax payments? First, when you’re aware that you’ve forgotten to pay your taxes, immediately inform the IRS. You have a lot of different options to help you resolve your tax debt. The first thing you should do is file your taxes before the IRS files the taxes for you. Occasionally, the IRS will ask you to visit their nearest office to double check your personal details. You’ll have to bring over the required documents and file your taxes personally on the spot.
When the tax amount you owe hits $51,000 and above, your passport could be suspended. The government can block the renewal or even not provide you with a passport document. As the IRS can be rather occupied, your tax dues may get reassigned to a private tax collection firm. This is when you’ll be hit with more aggressive strategies to make you pay up.
If you’re in a situation where you’ve forgotten to pay your commercial taxes, don’t fret. A good option is to turn to our tax consultants who will support you through this stressful time. Simply contact MWB Tax Solutions. Our dedicated licensed experts are available at 612.524.5811. Contact us anytime for a free and confidential consultation.