Every business in Texas has to pay income taxes. If you haven’t been paying your taxes throughout the year, you might not be able to pay the full amount when you file at the end of it. Fortunately, the IRS offers a few alternatives.
Alternatives available when paying your business income taxes
If you can’t afford to pay your taxes, you could ask the IRS for an extension. The IRS might give you an extra 120 days to get the money that you need to pay your obligation. However, you’ll accrue interest during this time, so it’s best to pay off your taxes as soon as possible.
You could also pay a large amount on the due date. That percentage won’t be late, so you won’t have to worry about any late fees. However, you’ll still be responsible for any taxes that you didn’t manage to pay off. You might also have to pay a penalty if you still owe more than 10% of your taxes.
Under IRS tax law, you could ask the IRS for a payment plan. This allows you to pay off your taxes in a series of installments. If you want to pay your debt off right away, you could also use a credit card. Either way, you might have to pay interest. A tax law attorney could tell you which option is best for your situation.
Do you need help with your taxes?
When you open a business, your taxes suddenly become a lot more complicated. If you have to pay estimated taxes, you might have trouble figuring out how much you owe at the end of the tax season. An attorney could help you with any tax-related challenges and defend you if the IRS decides to take legal action. They could also help you if the IRS orders an audit of your taxes. The sooner you speak with one, the more likely it is that they can assist you.