First, let us assure you that you are not the only one with back taxes hanging over your head. At Xendoo, we help business owners regain their peace of mind every day; and in many cases, there are things we can do to lessen the impact you’re fearing.
Here are some reasons to get that monkey off your back now and start 2018 with a clean slate.
3-year limit on claiming refunds.
What if you were actually owed a refund for one (or more) of the years you didn’t file a return? The government only honors refunds for three years; so, every year you let go by could be more money lost forever.
When we bring your financials up to date, we’ll make sure you receive every tax benefit you’re entitled to. You might find that you owed less tax, or were due to a bigger refund than you thought.
Late penalties and interest never expire.
The longer you let your back taxes slide, the more you’ll pay over and above the actual amount of the tax. And unlike with refunds, the government has no time limit on collecting those debts.
You may qualify for a penalty reduction.
Life happens, and sometimes you just can’t pay your taxes on time because of circumstances beyond your control. The IRS makes allowances for this by providing small businesses Penalty Relief Due to Reasonable Cause. According to the IRS website, typical reasonable cause situations include:
- Fire, casualty, natural disaster or other disturbances
- Inability to obtain records
- Death, serious illness, incapacitation or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family
- Other reason which establishes that you used all ordinary business care and prudence to meet your Federal tax obligations but were nevertheless unable to do so
You may not have to pay it all at once.
Our tax experts can advise you on making a repayment agreement with the IRS. Just remember that the longer you take to pay your debt, the more interest will accrue on the unpaid amount.
Delinquent taxes affect your credit score (and more).
This debt could be costing you in ways you haven’t even thought of. Everyone from landlords to lenders to suppliers will check your credit report, and give you a worse deal (or no deal at all) if it doesn’t meet their standards.
It’s all too easy for back taxes to grow into a mountain you’re afraid to climb. But with Xendoo’s tax catch up services, you can rest easy that experts are digging through that mountain and finding every possible way to take the load off your mind.