Articles Tagged with business tax debt

Can a Business Benefit from the IRS Offer in Compromise Program?
The IRS Offer in Compromise (OIC) program is commonly associated with taxpayers who owe tax debt, but have insufficient assets or resources to pay it off. The IRS will agree to settle the tax debt for less—sometimes significantly less—than the amount owed if the taxpayer agrees to pay as much as the IRS can realistically collect.

However, the OIC is also available for businesses, including businesses that are currently operating. This includes tax debt attributable to back payroll taxes.

First, the business must be current in filing all tax returns. The IRS will not even consider OICs from taxpayers that have not filed all required tax returns. They will return your OIC, and keep any money you sent as an initial deposit to be applied towards your outstanding tax debt.

Can You Be Liable for Your Spouse’s Tax Debt
Married taxpayers often choose to file joint tax returns because of the higher standard deduction amounts, marginal tax rates thresholds, and other benefits. One aspect of joint filing that taxpayers are sometimes unaware of is that both taxpayers are jointly and severally liable for the taxes due, as well as any penalties or interest that are imposed by the IRS.

Joint and Several Liability for Tax Debt

Joint and several liability means that the IRS can go after either taxpayer (or both) for the full amount of the tax debt. Even if you later divorce, the IRS can go after you for tax debt from previous tax years when you filed a joint return.