02 Sep Surviving business slow down
Surviving business slow down, business continuation issues as well as negative IRS tax outcomes
It is a good time to understand IRS tax strategies and business continuation strategies – especially while we are seeing a small business economic fallout.
A handful of us in our EA and CPA team recently attended a long workshop that provided timely updates on IRS problems and resolutions. It was timely, due to the economic recession and IRS problems that many small businesses will be facing. Unfortunately, it is not our first ‘rodeo’ – helping small businesses during an economic slowdown. Our firm has been in business since 1992, and we specialize in small businesses – tax, accounting, payroll, and insurance. We’ve seen an economic slowdown or two during our rich history.
When a business owner owes a great deal of tax and their income and equity situation is not favorable, after an economic-financial hardship, there may be opportunities to have those taxes reduced, paid over a longer period of time, or even canceled. Different strategies may be used, depending on the right fit for the client and their specific circumstances. These options may include Offer In Compromise (OIC), Penalty Abatements, Bankruptcy Considerations (referrals to Bankruptcy Attorneys, etc.), Partial Payment Considerations, Installment Agreements, and Tax Reductions with Cancellation of Debt.
Additionally, our team is actively engaged in the process of evaluating tax policy, staying in touch with officials and legislators, and, when appropriate, offering recommendations that are in the best interests of small businesses. There are several pieces of legislation being discussed and debated that could impact small businesses, such as liability shields for employers, as well as the recent payroll tax deferral.
Finally, it’s also important to know how to determine when it’s time to consider an exit strategy for your small business. It’s a difficult decision to make, but the economic fallout from the pandemic has threatened the livelihood of countless businesses, and it is vital that small business owners know when to say when. This can mean a variety of things, ranging from exploring options for restructuring your business, filing for bankruptcy, selling a business, or seeking early retirement. There are pros and cons associated with each of these options, and they are not choices small business owners should make alone. Our team has ample experience in advising small businesses during tough decisions just like these, and we are able to let you evaluate all the options – from remaining open to moving on – so a business owner can make an informed, responsible decision.
Some of the strategies that we will likely be working through with our valued clients, more frequently in the near future, may vary greatly. We are prepared to assess their situation and provide advice on the best course of business continuation, as well as customized, strategic IRS tax outcomes to those business owners and individuals that are in need.
Todd Unbehagen, MAFM, EA, ATA, ATP
President/CEO – Unbehagen Advisors
**Information current as of 8/24/2020. Please consult Unbehagen Advisors, or another qualified team of tax and accounting advisors, when considering your specific needs and strategies.