IRS compliance cleanup

Is your US business or LLC behind on IRS compliance? The most critical first step is to file all missing tax returns, even if you can't pay the full amount immediately.

This action is vital because filing prevents the larger failure-to-file penalty and ensures you receive credit for any deductions or exemptions you're entitled to, unlike an IRS-prepared substitute return.

Once filed, you can explore various resolution options. The IRS offers payment plans like installment agreements and offers in compromise, and you may qualify for penalty relief due to reasonable cause or first-time abatement.

State tax agencies also have their own processes for corrections and payment arrangements. Don't delay; proactive engagement can significantly reduce penalties and provide more flexible solutions.

Practical Cleanup Checklist: - Step A — Inventory & documentation: Gather IRS transcripts, payroll records, bank statements, and prior returns. - Step B — File missing returns: Submit all overdue federal and state tax forms. - Step C — Reconcile deposits: Verify and correct any missed tax deposits. - Step D — Calculate balance due: Determine total tax, penalties, and interest owed. - Step E — Request relief: Apply for penalty abatement if eligible. - Step F — Select payment path: Choose from online payment, installment agreement, or other resolution options. - Step G — Address responsible-person exposure: Understand potential personal liability for payroll taxes. - Step H — Monitor and document: Keep meticulous records of all communications and payments.

Need help navigating this complex process? Contact a qualified CPA, Enrolled Agent, or tax attorney today.

The Taxpayer Advocate Service is also a valuable resource for those facing significant IRS issues.

Is your US business or LLC behind on IRS compliance? The most critical first step is to file all missing tax returns, even if you can't pay the full amount immediately.

This action is vital because filing prevents the larger failure-to-file penalty and ensures you receive credit for any deductions or exemptions you're entitled to, unlike an IRS-prepared substitute return.

Once filed, you can explore various resolution options. The IRS offers payment plans like installment agreements and offers in compromise, and you may qualify for penalty relief due to reasonable cause or first-time abatement.

State tax agencies also have their own processes for corrections and payment arrangements. Don't delay; proactive engagement can significantly reduce penalties and provide more flexible solutions.

Practical Cleanup Checklist:

• Step A — Inventory & documentation: Gather IRS transcripts, payroll records, bank statements, and prior returns.
• Step B — File missing returns: Submit all overdue federal and state tax forms.
• Step C — Reconcile deposits: Verify and correct any missed tax deposits.
• Step D — Calculate balance due: Determine total tax, penalties, and interest owed.
• Step E — Request relief: Apply for penalty abatement if eligible.
• Step F — Select payment path: Choose from online payment, installment agreement, or other resolution options.
• Step G — Address responsible-person exposure: Understand potential personal liability for payroll taxes.
• Step H — Monitor and document: Keep meticulous records of all communications and payments. Need help navigating this complex process? Contact a qualified CPA, Enrolled Agent, or tax attorney today. The Taxpayer Advocate Service is also a valuable resource for those facing significant IRS issues.