At Net Prophet, there is a common, but sad, moment we experience. This happens, not only in Colorado, but all over the country. With expert attention to detail, after one of our Colorado CPAs completes the business owner’s tax forms and takes advantage of all the tax breaks possible, this fine and dandy Colorado CPA discovers that the business owner owes money to the IRS. Worst feeling in the world, right?
Immediately upon hearing this news, this poor Colorado business owner’s face drains to a pasty white as the business owner realizes there is no way in hell that he or she can pay this bill. With a look that says, “Are you kidding me? There goes my vacation,” our expert CPA then tells the business owner, “No worries,” the IRS has outlined three ways to repay this debt, one of which is an installment agreement.
For years, Net Prophet has helped business owners, in Colorado and around the country, apply and arrange to pay off their debt. The IRS has specified that, for those businesses that owe less than $25,000 and have filed all their required returns, they can take advantage of this great plan.
When it comes to using this option, there are a few additional items you will need to know:
- All future refunds will be applied to your tax debt until the debt is paid in full
- To prevent further penalties and interest, the minimum monthly amount must be paid on time
- If your agreement goes into default, a reinstatement fee could apply
- Penalties and interest continue to accrue until your balance is paid in full
When it comes to an installment agreement, no pun intended, but the buck literally stops with us. We can help ‘cause at Net Prophet we really do know what we’re doing. Tie your shoes on your own, wash your laundry by yourself, but do not set up your own installment agreement.
Consider these two facts:
- In 2013, 106,776 small businesses were audited
- The average additional money demanded from these audited businesses was $5,500
Small business owners, entrepreneurs and non-profits, take note: like
everyone else in Colorado and across the country, do not let your taxes become the federal government’s thorn in your business side. Come to us, at Net Prophet. We promise, we don’t bite, but our CPAs do break your taxes down into tiny pieces to make sure all your deductions and tax breaks are maximized and, should a debt be due, we help make sure all your bases are covered. In other words, we gotcha!