IRS tax disputes can cripple a Toledo-area business

On Behalf of | Jan 25, 2022 | Business Litigation |

Just like private individuals, businesses in the Toledo area can fall into trouble with the Internal Revenue Service, or IRS. The IRS is responsible for collecting income taxes, payroll taxes and other revenue owed to the United States.

Sometimes, the issue is that the business has fallen on hard times and just has not stayed caught up on paying income taxes or payroll taxes, and the IRS is taking collection actions.

In other cases, the business may have made an honest mistake that nonetheless leaves the business with a hefty an surprise tax bill. In still other cases, there may be a dispute about the business’s tax liability that may require litigation to resolve.

Not matter the reason, sometimes the IRS will claim that a business owes hundreds of thousands or even millions of dollars in taxes, penalties and interest.

The IRS also has lots of collection tools at its disposal which can quickly cripple a business if the IRS believes the business owes taxes.

A business does not just have to accept the IRS’s decisions about taxes

While it can be scary for smaller to mid-sized Ohio businesses to have to deal with the IRS, they should remember they do not have to take the agency’s decision at face value.

For instance, in some cases, it may make since to send a protest to the proper appeals office within the IRS. This office works independently from the IRS agent which originally made the decision with which the taxpayer disagrees.

Even if a business does not want to try an internal appeal, the business may decide to petition the United States Tax Court. The Tax Court is specially established in order to resolve disputes between taxpayers and the IRS.

It has its own set of rules and procedures which those who wish to use it must follow. These procedures include some strict deadlines which, if not met, can lead to the loss of important legal rights.

Appealing an unfavorable decision is a complicated process which a business must correctly follow. It may be helpful for the business to seek out assistance when lodging a formal challenge to a decision by the IRS.