We come across interesting cases with business owners. One that stands out is where a small business owner's tax preparer passed away. Years passed on; the business grew and the business owner never found another preparer. The federal and state tax debt just accumulated. To add to the problem, the internal records are unorganized to be polite, despite using software to process sales. It happens!

In these type of cases, it is best to work with a professional to help the business owner assemble the records, while making sure to support all expenses. In case records are missing, the professional will know what can be done to support the expenses. In addition, at the same time, the right professional will know how to work out a tax debt strategy to deal with the IRS and state tax agencies. To complicate things further, depending on which state you live in, the right professional will know how to handle spousal liability, as spouses get dragged into the party. 

Circling back to the deceased tax preparer, the situation was complicated because the tax debt triggered a tax lien and this impacted the business owner's credit. Luckily, we handled the case: we planned ahead and got the returns in and implimentated a tax debt strategy to address the IRS, state and tax liens. It was a complicated process. But in the end, things worked out: there was light at the end of the tunnel. 

Moral of story: do not let your tax debt accumulate. Find or ask around for help. It is important to work with a professional. BMG Consulting & Tax can help. We help with tax debt and problems. Contact us. 623.219.6821 or info@bmgconsultingtax.com.