Business Tax Debt and the IRS

Business tax debt such as sales and payroll tax generally has to be paid in full after filing. However, interest and penalties stop accruing and you can have up to five years to pay the amounts owed. Under an installment agreement plan with the IRS or State, if you miss a payment, it will generally default or void the agreement. A major advantage to playing through a Chapter 13 case is that if you miss a payment or two, there is no automatic default and you will be afforded time get caught back up. If you are in business, this can be a big advantage as your cash flow changes from month to month.

Types of Business Tax

Anyone who lives in Savannah, Hinesville, or Pooler GA (or any other U.S. city), and owns a business or works in a business is required to file an income tax return each year. Business taxes fall into these groups:

  • Income tax. This tax, also known as a pay-as-you-go-tax, is paid as you earn or receive any income during the year. Also during the year, this tax is usually withheld from an employee's salary.

  • Self-employment. As the name indicates, this is a social security and Medicare tax that mainly involves people who are self-employed. The tax money provides such social security coverage as retirement plans and hospital services.

  • Estimated tax. Taxes are paid on income made during the year, including self-employment.

  • Employment tax. As an employer, you must pay certain taxes to cover your employees, such as federal withheld income tax and social security and Medicare taxes.

  • Excise tax. You must pay excise taxes and file forms during the year if you own a business that makes or sells certain products, or if you are involved with certain types of equipment, or if you are paid for certain services. Excise taxes may be paid in certain specific areas, such as the retail sale of trucks and trailers, air transportation, and the sale and use of various products.

Business Tax Issues?

If you are self-employed in Savannah, Hinesville, or Pooler GA, or if you work for a self-employed and have run into problems with any business tax, contact us. We are well experienced with the complications of the laws that govern business tax in the state. In some instances, these complications may threaten an employer or employee with bankruptcy. If you are struggling with overwhelming debt from whatever cause or if you feel that you have been unfairly charged with any of the rules that govern these business taxes, call us now. John E. Pytte has expertise in all areas involving bankruptcy discharge, debt relief, business and personal tax, and more. We serve Savannah, Hinesville, Pooler GA, and the surrounding area.

Start to take back control over your finances and your life with a free lawyer consultation today in Savannah or Hinesville, GA. We have flexible appointment scheduling and are committed to making this process as uncomplicated as possible. Most everyone may pay taxes, but they should not be allowed to run your life. Call us today and take that first step.