Running a small business is rewarding—but it also comes with complex tax obligations. Between payroll taxes, estimated quarterly payments, and changing IRS rules, it’s easy for things to fall through the cracks. And when they do, tax debt can escalate fast.
At Back Tax Rescue, we work with small business owners across Gwinnett County who are struggling with IRS problems. Whether you owe thousands in back payroll taxes or haven’t filed in years, there are solutions—and we’re here to guide you through them.
This guide breaks down the most common IRS problems business owners face, what triggers IRS action, and what tax resolution options are available to help you keep your business afloat and regain control of your finances.
💼 Common IRS Problems for Small Businesses
❌ 1. Unpaid Payroll Taxes (Trust Fund Taxes)
If you have employees, you’re responsible for withholding and paying Social Security, Medicare, and income taxes. Failing to deposit these taxes can trigger serious IRS action—and personal liability.
⚠️ The IRS doesn’t take payroll tax noncompliance lightly. It’s often the fastest way to trigger a tax lien or business shutdown.
❌ 2. Unfiled Business Tax Returns
Missing one year is bad. Missing multiple years? That can shut down your business. The IRS may file Substitute for Return (SFR) filings with inflated numbers and start collection action.
❌ 3. Misclassification of Employees
Classifying full-time workers as independent contractors (1099s) can result in audits, back taxes, and penalties if the IRS disagrees with your status.
❌ 4. Estimated Tax Underpayments
Self-employed owners must pay taxes quarterly. Missed payments lead to penalties, interest, and an increased risk of audit.
❌ 5. IRS Liens and Levies on Business Accounts
If you ignore notices, the IRS can freeze business bank accounts, place liens on equipment, or even levy accounts receivable (money owed to your business).
⚠️ Warning Signs the IRS Is Targeting Your Business
- You receive IRS CP504, CP523, or Letter 1058
- You’re locked out of your IRS online business account
- Your bank account is frozen without notice
- You receive a Trust Fund Recovery Penalty notice
- You’re contacted by a Revenue Officer (in-person visit or letter)
If you’re experiencing any of the above, call a tax resolution specialist immediately. The longer you wait, the fewer options you’ll have.
🛠️ Tax Resolution Options for Business Owners
Let’s explore the legal, IRS-approved ways to resolve business tax debt:
✅ 1. Installment Agreement for Businesses
This allows your business to pay off debt in monthly payments. There are options for:
- In-Business Trust Fund Express Agreements (debt under $25,000)
- Regular Business Installment Agreements (larger balances)
We help prepare the financials and negotiate payment terms that keep your operations running.
✅ 2. Offer in Compromise (OIC) – Doubt as to Collectibility
You may be able to settle your tax debt for less than the full amount. While harder to qualify for as a business, it’s possible if your income, expenses, and assets show an inability to pay.
✅ 3. Penalty Abatement
We can request removal or reduction of penalties for:
- Late filing
- Late payment
- Payroll tax non-compliance (in some hardship cases)
You must show reasonable cause—like illness, theft, or reliance on bad advice.
✅ 4. Currently Not Collectible (CNC) Status
If your business is temporarily unable to pay anything without shutting down, we may be able to pause all IRS collection actions through CNC designation.
✅ 5. Trust Fund Recovery Penalty Defense (Personal Protection)
If you’re being held personally liable for unpaid payroll taxes, we can defend you against Trust Fund Recovery Penalty (TFRP) assessments and prove you weren’t willfully responsible.
📁 Required Documentation for Business Tax Resolution
To work with the IRS, you’ll need:
- Profit & Loss statements
- Balance sheets
- Bank statements
- Payroll records
- Asset and liability breakdowns
- IRS Form 433-B (Collection Information Statement for Businesses)
We prepare, review, and organize these documents so your case is presented accurately and effectively.
🧠 Why You Should Act Now—Not Later
IRS actions against businesses escalate quickly:
- Frozen business bank accounts
- Seizure of equipment or assets
- Loss of business licenses
- Damage to vendor/client relationships
- Personal liability for payroll taxes
The longer you wait, the fewer resolution options remain. Taking action now preserves your business—and your livelihood.
👨💼 How Back Tax Rescue Helps Business Owners
We work one-on-one with business owners in Duluth, Grayson, Auburn, and all across Gwinnett County to:
- Stop levies, liens, and garnishments
- Resolve back payroll tax issues
- Protect owners from personal liability
- Set up manageable resolution plans
- Handle all IRS communication and documentation
- Keep your business running through resolution
📞 Your Business Is Worth Fighting For—Let’s Get Started
Whether you’re a solo contractor, a local service provider, or running a growing team—tax problems don’t have to end your business. Let’s find a solution that protects your company and restores your peace of mind.
📞 Call Back Tax Rescue: 470-699-1187
📧 Email: info@backtaxrescue.com
🗓️ Book a Free Small Business Tax Relief Consultation »
You’re not alone—and you’re not out of options. Let’s rebuild your business together.
