America is a country of entrepreneurs. Our new pioneers are those who risk everything to be their own bosses and bring economic growth. Many small business owners are faced with the tax debts they acquired during more successful years, and they simply don't have the revenue to pay it all now. Fortunately, there are IRS installment agreements available for these businesses.
The In-Business Trust Fund Express IRS Installment AgreementIn some cases, smaller businesses that are operating with employees can enter into an IRS installment agreement without disclosing finances at all. To qualify for this non-disclosure IRS installment agreement, you must meet all of the following requirements.
- Your business owes less than $25,000 or will pay down to below that level.
- You can pay the full debt by whichever is sooner, 24 months or the statute of limitations.
- Any debt over $10,000 must be in a direct debit IRS installment agreement.
- All of your filing and payment requirements must be satisfied.
If you are eligible for an In-Business Trust Fund Express IRS Installment Agreement, fill out a Form 9465. Send it to the address on your business' tax bill or the address on page 2 of the Form 9465.
IRS Installment Agreements for BusinessesDepending on the corporate structure of your business, you may be personally liable for the tax debt. This applies to all sole-proprietorships and many LLCs. In this case, you will have to apply for a personal IRS installment agreement.
For a business that has an income or payroll tax debt larger than $25,000, you must fill out a Form 9465 and a Form 433-B. The Form 433-B discloses a business' finances to prove that it can afford to pay current taxes, operating expenses, and delinquent taxes. To fill out the Form 433-B, make sure you have the following information.
- Business Name & EIN.
- Business addresses.
- Type of business entity.
- Payroll information.
- Tax deposit information.
- Payment processors.
- Debts owed to the business.
- Business Personnel.
- Payroll services.
- Bankruptcy history.
- Assets transferred.
- Business affiliations.
- Anticipated income.
- Credit cards accepted.
- Bank account information.
- Government contracts.
- Available credit.
- Property & Vehicles.
- Equity and Liability.
- Income & Expense.
If the business is considered a repeat tax debtor, it may be denied an IRS installment agreement. The IRS may send a Form 9297 to request payments, tax deposits, or tax returns. If you fail to work with the IRS 30 days after that notice, the seizure and sale procedure may start. Even if you do keep up with all of your IRS installment agreement requirements, the IRS may place a lien on your business to secure the debt.
Do you need help setting up an IRS installment agreement for your business or payroll tax debt? Consult a professional. Call now or fill out the form below for a free tax debt consultation to get in the right IRS installment agreement for your business! We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.