We are genuinely in a scary time, with many businesses upended by the Covid-19 pandemic. Businesses saddled with IRS and state tax problems face a host of new, complex questions.
For 30 years as a CPA, tax resolution, and business turnaround specialist, I have focused exclusively on helping businesses resolve IRS and state tax problems and the underlying cash flow issues that cause those problems.
I understand what you are facing—I have helped hundreds of businesses like yours. Prepared with a concrete plan of how to manage your limited cash flow you can come out of this strong. But the right advice is critical, especially in these extraordinary times.
First, some good news: this is a great time to handle your tax problem. Here’s why:
- Time. Specifically, more of it. For many, the daily treadmill of running a business has slowed, and you may finally have a bit more time to focus on finances and processes.
- Even more time. The IRS and states have virtually STOPPED pursuing aggressive collections.
- PPP loans or EIDL Grants. These can help a lot if used the right way for your business.
- Easier deals. The IRS and states will start pursuing delinquent taxes—even more aggressively— due to budget deficits. But they may be more open than ever to negotiating to make up for tax shortfalls.
Common questions I hear these days from my clients that owe money to the IRS or state:
- How do I prepare for a deal once the IRS and State are “back to normal”?
- Do I stay closed, given my debt and financial hardship caused by the pandemic and tax problems?
- If I reopen or am open what is the best use of my limited cash flow?
- What constraints will I face once I reopen? Should I fully staff? Will my employees come back?
- Do I have a definitive plan to prosper when I reopen and get back to normal?
I applied for a Paycheck Protection Program (PPL) loan and/or EIDL Grant:
- Can a PPP loan relieve my tax debt—while protecting my—and my employees’—future income?
- What steps do I take to make sure my loan will be forgiven? Is this the most important consideration?
- Do I continue to pay rent, utilities, and interest despite a negotiation not to pay?
- How do I strategically balance the 75/25 rule of payroll versus non-payroll eligible expenses?
- Would my business be better off taking the Employee Retention Credit under the Cares Act … or the Paycheck Protection Program (PPP)? (you can only take one)
The time to plan and strategize is now. If there is one thing I’ve learned in 30 years of helping clients … the sooner you deal with a tax problem, the better the outcome. The worst thing you can do is ignore the situation. Lift the burden and start on a path to a prosperous, new future! Reach us directly at (703) 847-6686 for a simple, free, confidential consultation with no obligation. We’re open for business—and actively helping clients!