Protecting Your Business from IRS Shutdown
The IRS can padlock your business, seize your inventory, and shut you down. Here is how to prevent it — and what to do if they are already threatening.
When a business owes payroll taxes, the IRS treats it as a priority. The money you withheld from your employees' paychecks belongs to the government. In their eyes, you're holding it hostage. And they will use every tool they have to get it back — including shutting your business down.
A Revenue Officer can seize business assets, levy business bank accounts, contact your customers to intercept payments, and in extreme cases, padlock your doors. These aren't theoretical powers — I've seen all of them exercised.
What Triggers IRS Business Enforcement
Unpaid payroll taxes are the primary trigger. If you've been filing 941s but not paying, or worse, not filing at all, the IRS will assign a Revenue Officer. The RO's first goal is to get you current — meaning current quarter deposits are being made on time. Their second goal is to resolve the back taxes.
If you can't demonstrate that current taxes are being paid and a viable plan exists for the back taxes, the RO will recommend closure of the business. The IRS views a business that can't pay its current taxes as a "pyramiding" liability — it's getting worse every quarter and they want it stopped.
How to Protect Your Business
Get current immediately. Whatever it takes, start making current payroll tax deposits on time. This is non-negotiable. The IRS will not negotiate about past debt while you're accruing new debt.
Get representation. A Revenue Officer negotiation is not something you handle yourself. You need someone who speaks their language, understands their authority levels, and knows what deals are available. An attorney can negotiate installment agreements, propose partial-pay arrangements, and in some cases, negotiate trust fund penalty allocations that protect the business.
Separate personal from business. If the TFRP has been assessed against you personally, your personal resolution strategy may differ from the business strategy. An attorney can coordinate both simultaneously.
If the IRS is threatening your business, call today. Revenue Officers operate on deadlines, and the window to negotiate before enforcement action narrows quickly.
32 years. Over $100 million in IRS tax debt resolved. If you need more than information — if you need representation — I can help.
Schedule a Free Consultation →