Manufacturers & Distributors ARTICLE -
New IRS Measures on Liens Make Dealing with Back Taxes Easier
Target Audience: Manufacturing and Distributing Companies, M&D Industry
If you’re worried about unpaid taxes, recent IRS measures may help you breathe easier. The IRS has relaxed its policies on liens, which are claims that the federal government puts on the assets of delinquent taxpayers.
Manufacturers with liens against them risk having the government seize their property and may have trouble obtaining credit. Thus it’s important to promptly take the steps necessary to have a lien withdrawn.
The new rules make it easier for “small businesses” to set up payment plans for back taxes and, ultimately, have their liens withdrawn. While the IRS doesn’t specify which manufacturers fall into the “small business” category, the U.S. Small Business Administration generally defines a small business as one with 500 or fewer employees.
Small businesses with $25,000 or less in back taxes can now qualify for a payment plan — previously, the tax threshold was $10,000. If you owe more than $25,000 in back taxes, you can pay down the amount to $25,000 and then qualify. Once you start making your payments, the IRS will withdraw the lien after a probationary period. You must pay off the balance within two years.
If you have unpaid taxes but haven’t yet been slapped with a lien, you also may be in luck: The IRS also announced that it is “significantly” raising the dollar threshold when liens are issued, though it hasn’t specified what the new threshold is. Still, if you owe back taxes, it’s in your best interests to pay up quickly to avoid problems.
Find out how our M&D accountants can add value to your business. Email us or call us at 1 (888) 875-9770.
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