What to do if you can’t pay your business taxes?

| May 3, 2021 | Tax Law |

Texas business owners have a lot on their plate. When it comes to taxes, you may be running behind on paying yours. While it may feel like the end of the world, you do have various options out there to remedy the condition.

File for an extension

When it comes to business taxation, your taxes will be due on the filing date. Each type of business entity has a specific filing date by which they much submit their business taxes by. In the event that you do not have the money to pay your entire bill, you might want to file an extension. Most businesses can typically get a 120-day short-term extension. This extension doesn’t require any sort of fee. However, you’ll be required to pay any late payment penalties and interest that accrue on the amount of taxes that you owe until you pay them.

Set up a payment plan

In some cases, you may qualify for an installment payment plan with the IRS. The specific payment plan that you’ll be eligible for will highly depend on the amount of taxes that you owe. It’s best to contact the IRS or check out their online payment agreement options to determine if you’re eligible for setting up a payment plan. Realize that the amount that you owe in business taxes will still accrue interest until the entire amount is paid off through your installment agreement with the IRS.

Realizing that you don’t have enough money to pay for your business taxes when the payment date rolls around can be a scary thought. Fortunately, you do have a couple of different options that you can utilize to remedy the situation. When dealing with your tax bill, it’s a good idea to consult an attorney to ensure that your best interests are looked after.