What are the biggest IRS problems that businesses and the self-employed have?


The biggest surprise lurking for many corporations is that the IRS default rules make any corporation a “C” Corporation. Distributions to the owners are taxed at an individual level. If you fail to make distributions, the IRS can hit you with another tax for having too much-retained earnings. All of these issues can be fixed. Our job is to find the right structures to legally lower tax liabilities for your business.


Many tax commentators claim that partnership taxation is the most complicated area of tax law. We tend to agree. Our job is to simplify the issues to a point where we have actionable intelligence. Oftentimes the tax code can be used as a weapon to harm another partner. We can be there to stop that.


The biggest surprise for the self-employed? How quickly both income and self-employment taxes add up. These are problems that don’t happen to the same degree when you are an employee as someone else is withholding and paying your taxes. Also, as an employee, there are employment taxes that only your employer sees. When you are self-employed you have no one to withhold your estimated tax payments, you must have the discipline to do it yourself. You are also on the hook for the entirety of self-employment taxes.

Payroll taxes

Issues can happen easily with payroll taxes. What often happens is a company runs into a cash-flow bind and “shorts” payroll deposits. Sometimes, unfortunately, an employee may be embezzling from you. If you don’t pay what is due to the government, you will be penalized. Penalties for failing to make timely deposits are punitive.

The common scenario we see with payroll tax problems is that companies end up paying more than double what they would have had they had an organized plan. There is a way to get the most bang for your buck with the IRS and there are abundant traps to make sure you don’t. Paying more than you have to can put a company in a precarious situation. Our job is to destroy this vicious cycle with solutions that will work. For more information about payroll tax issues, click here.

Are there ways to reduce my tax liabilities?

Absolutely. There are different ways to structure your business, deductions you may not know you can take, ways to use retirement and benefit plans, and many other tax elections that can save you money. If you need assistance setting up your business, or if you’re already in business but want to revisit your business plan, contact us for assistance.

What can I do if I have self-employment or business tax issues?

Get in front of the problem. Ignoring the issue means that the tax debt will grow and worsen and it could be the downfall of a business you’ve worked so hard to build up. We can negotiate with the IRS and set up payment plans.

How can you help me pay off my tax debt without killing cash flow?

Many people are surprised that you can negotiate with the IRS. There are repayment options such as an Offer in Compromise and Installment Agreement. The important part of negotiating is telling your entire story; this is critical in ensuring that you are going to be making a payment that you can truly afford.

Why you might not owe as much as you think

There are many deductions, tax credits, and strategies that you may not be taking advantage of! If you have a tax issue, contact us for help. We can not only help you negotiate with the IRS, we can also look at your books and returns to see if perhaps you’ve missed an opportunity that could actually lower your tax liability.

Can you help me with my tax questions?

Absolutely. We can help you every step of the way; whether you’re in the planning stages of setting up a business, have an established business, or find yourself with a tax problem.

We have a proven track record of success in helping thousands of taxpayers. With over 10 years of experience, we’ve developed a process. It works.

Contact us to set up your free, confidential consultation. Call us at 888-727-8796 or email info@irsmedic.com.