The business owes back taxes. The business can not pay all the back taxes today. However, you could pay back the taxes over time. You can request a Business IRS Installment Agreement.
Business IRS Installment Agreement – Basics
You can request a Business IRS Installment Agreement for all types of business taxes. This includes:
- Payroll taxes
- Federal unemployment taxes
- Corporation taxes.
The IRS has various different payment plan options.
Owe Less than $50,000 – Streamlined Business Installment Agreement. The IRS will accept 6 year payment terms. This is not for businesses with payroll back taxes.
Owe Less than $25,000 – In-Business Trust Fund Express Business Installment Agreement. The IRS will accept 2 year payment terms. This is for business with payroll back taxes.
Any Amount of Business Back Taxes – The payment terms will depend on the business financial condition. The IRS will determine how much the business can afford. The payment amount is negotiable.
- Importance of compliance
- Types of business taxes
- Which plan is available to you
- How to determine the monthly payment amount
- How to make payments
IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.