You receive notices, letters and visits to your business address from Internal Revenue
Service Collection Officers. Yet, you are in denial and expect a miracle from your
accounts receivable, future sales or possible financial institution loans.
Clients and financial institutions are also in a bind. Clients have limited funds and also depend on their income sources to acquire goods and services. As for financial institutions, they are not lending. Even if you have good credit and assets. Yet, many of us are in denial and continue to operate our businesses and financial affairs as if it were yesterday.
Yesterday is gone. No more credit cards, no easier loans, SBA Business loans limited or not funded at all. Financial institutions not willing to loan funds anymore. Even though, they took large amounts of TARP funds to keep their businesses afloat. And, took huge losses on their investments. Where are our TARP fund loans? Why can we not report huge losses immediately? Our credit reports should be expunged and everyone given a fresh start just likes many banks, financial institutions etc.
As a business who is required to pay business taxes. One cannot have the luxury to accumulate tax debts hoping for a tomorrow. The tax agencies will not wait anymore.
So, what are we to do? Well, first of all, look at our finances and realize that we have a negative or small positive income stream. Then, seek to reduce your non-essential expenses. Expenses such as lowering your merchant account interest rate and fees by comparison shopping. Or, lower your advertisement costs. Laying off non productive or non essential people. You can always re-hire them after you fix or arrange to pay your business tax debts.
Always look for a good business adviser that includes cash flow management skills and advice on how to deal with your current finances. If they only provide one area of assistance. That is not sufficient these days. However, the most important of all is for you to listen and implement all the projects, changes and cost reductions needed to stay afloat of your business debts. Remember, no tax agency will wait until you have cash to pay them.
Many of us unfortunately hire attorneys, CPAs and other professionals in an attempt to stop tax collection agencies from closing our businesses down. And, blame our professionals for not helping you. Yet, many clients fail to listen to suggestions on how to turn their businesses around. You cannot keep on the same track and expect changes to your dire financial condition. You ask for help. Yet, do not allow professionals to help you by not cooperating in providing the necessary information or actions required.
Things happen for a reason. You need to stop dreaming of keeping your assets and same lifestyle even as a year ago. We need to confront these crises head on and make the changes needed to survive.
Martha De la chaussee:
IRS Collection Officer for 25 years. Partner at Advocate Tax Group LLC located in Ontario, California. Graduate of WoodBury University with a Bachelor's Degree in Business Management. Bi-lingual in English and Spanish. Author's website Email the author