What should a business owner do who owes delinquent payroll taxes?
The first step is to stay current from this point forward. The IRS will close your business immediately rather than let you fall further behind. If you are still in business, the IRS officer’s actions will depend on: whether you pay your current taxes your prospects for paying the tax in arrears the difficulty and time involved in liquidating your business the money the IRS would get from a liquidation. That’s why a heavily encumbered business can more confidently deal with the IRS than can a business with a large equity exposed to the IRS. As a business owner, you have the same rights as an individual taxpayer to negotiate an Installment Agreement. Twelve-month agreements are routine, and longer installment plans are possible. Finally, you can submit an OIC to settle the back taxes. Business OICs are far less common than personal OICs, but when your business has fewer assets than tax liabilities, it can be a viable alternative.
