Not much happens when you first fall behind on taxes. But, things can progress rapidly at any moment. Levied bank accounts, levied accounts receivable, and other devastating things can happen. AVOID MAKING THE FOLLOWING MISTAKES!
The most obvious mistake made by small business owners is ignoring IRS notices. After 4-5 months, you can expect to deal with a Revenue Officer and the IRS can issue a bank levy.
Even if you can't pay your taxes, you should still file your returns. In fact, many people file without payment once or twice before finally paying the IRS.
Bookkeeping services are not free, but they can save you a significant amount of money and are well worth the price. You're more likely to get on a fair payment plan if your books are accurate.
Don't forget that Revenue Officers have two functions. One is to collect unpaid taxes, and the other is to enforce the law. Big trouble awaits you if you continue to comply with the IRS.
Be 100% honest with yourself. Is this business going to work, or is it going to keep piling up massive debt? If you need help with IRS problems or want to learn more, visit our website where you will find a ton of free information!