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Navigating IRS Troubles: Essential Steps for Businesses and Individuals
You find yourself staring at the envelope marked "Official Government Correspondence," and instantly you know — it's the IRS. Even the calmest individuals, including business owners, often feel a wave of anxiety at these simple initials: I.R.S.
Perhaps you missed a payment, faced tight cash flow, or your business experienced a slow quarter that prompted you to postpone a payroll deposit "just this once." Here's the crucial truth: IRS issues won't vanish with time.
In fact, they accumulate — with interest, penalties, and mounting stress. 
The good news? Resolution is possible. Now, even amidst a government shutdown, is the opportune moment to tackle it head-on.
The Hidden Costs of Delay
While the IRS doesn't immediately pursue you, once they do, they will be inexorable. Every month you delay, you incur:
Interest on outstanding balances
Penalties for late filing or payments
For businesses, potential Trust Fund Recovery Penalties — some of the most severe in the tax code
Even a minor delayed payment can rapidly escalate. A $2,000 underpayment can quickly double due to penalties and interest. And it’s not exclusive to individuals; business owners who lag on payroll taxes or quarterly estimates bear personal liability — which means the IRS can target you, not just your business.
Step 1: Confront the Reality
Many avoid IRS notices because of apprehension about what they'll discover. However, truthfully, the sooner you open that envelope or request your IRS transcript, the sooner you can mitigate the damage.
For individuals:
You can secure an account transcript directly from IRS.gov for details on your balance, penalties, and filings.
For businesses:
Request a business account transcript or consult your accountant — there might be unsubmitted forms or missed deposits causing the issue.
Knowing whether the problem is a single missed payment or several years of oversight is the first step.
Step 2: Explore Your Solutions
The IRS isn't seeking to ruin you; it operates as a system. And systems have rules that you can leverage to your benefit. Here are the primary ones:
Payment Plan (Installment Agreement):
Set up monthly payments to clear your debt gradually. Available to both individuals and businesses under certain thresholds.Offer in Compromise:
Negotiate to settle your tax obligation for less than the amount due when eligible. It's complex, but feasible with professional support.Penalty Abatement:
If you previously complied or have a legitimate reason (such as illness, disaster, or error), you may often reduce or negate penalties.
Currently Not Collectible (CNC) Status:
If financially strained and unable to pay now, the IRS can pause collections temporarily.
Each program requires specific documentation and timelines — but with proper assistance, they can work effectively.
Step 3: Business Owners, Stay Alert
If your business withholds taxes from employees, those funds are considered trust funds — essentially belonging to the U.S. government once collected.
Missing a deposit may seem negligible but is among the quickest ways to provoke stringent IRS actions.
If you’ve failed to make payroll deposits or filed Form 941 late, address it immediately:
Submit any overdue forms — even partial payments help.
Partner with a tax professional to arrange a payment plan.
Utilize automated payroll software or trusted services to remain compliant.
A clean payroll history protects both your enterprise and your personal resources.
Step 4: Act Promptly — IRS Is Slowing, Not Stopping
Currently, due to the government shutdown, nearly half of the IRS workforce is furloughed.
Here's how it affects you:
Electronic systems like e-filing and online payments remain operational, along with regular tax deadlines.
Manual processes — such as paper correspondence, some refunds, audits, and call centers — face delays or temporary suspension.
The backlog is accumulating, which might imply "extra time," but actually means less flexibility later.
Here's what you can do:
Don't presume the shutdown grants leniency. Filings and payments are still expected.
Preserve all transaction receipts and documentation — essential for when IRS operations normalize.
If unable to pay currently, still file returns to curb penalties and initiate the statute of limitations countdown.
If awaiting an IRS response, plan your next steps with a tax expert now – ensuring readiness when full staffing resumes.
In summary, while the IRS may be slower, it remains vigilant.
Step 5: Don’t DIY if It's Critical
If your debt is substantial or you’ve missed several payroll deposits, handle it with professional help.
A qualified tax expert can:
Quickly access your entire IRS record
Negotiate directly with the IRS for you
Set structured payment plans to safeguard cash flow
Ensure future compliance to prevent recurrence
This isn’t about judgment — it’s about utilizing expertise. Professionals know how to navigate the system to your advantage.
Step 6: Build Your “Never Again” Strategy
With your IRS situation stabilized, use this opportunity to establish systems for ongoing protection:
Set up automatic estimated payments or payroll tax transfers.
Integrate accounting software with your bank and payroll services.
Monthly check-ins with your accountant to avoid surprises.
Good tax management is not just about compliance — it’s about foresight.
Bottom Line
Whether you’re a wage earner behind on estimated payments or a business owner juggling payroll, IRS issues don’t define you — they require a proactive plan.
Even during a shutdown, the IRS clock continues. Act promptly to reclaim control and minimize future surprises once operations return to normal.
Resolve IRS Challenges Today
Don’t await another notice or another month of interest. Whether you’re an individual or a business, engage with Bryant CPA LLC today.
We’ll review your IRS file, clarify your options, and craft a detailed plan to address overdue issues — and prevent them from arising again.