Navigating Tax Issues for Small Business Owners

LuSundra Everett, EA

Welcome to another episode of The RVA Small Business Show with your host Cory Mosley. In today’s segment, we are joined by by LuSundra Everett, Enrolled Agent and Principal Owner of ETS Tax Relief.

LuSundra and the team at ETS Tax Relief specialize in Tax Problem Solving and Tax Preparation for Small Businesses.

In compliance means you have at least the last six years filed. -LuSundra Everett, EA

Understanding the Importance of Filing

The first takeaway from LuSundra’s conversation is simple yet crucial: always file your taxes, even if you can’t pay. “You automatically save money by filing your taxes on time because you won’t incur the failure to file penalty, which is ten times worse than the failure to pay penalty,” LuSundra highlights. This alone should be a strong incentive to mark tax deadlines on your calendar and uphold them religiously.

Addressing Un-filed Returns

But what if you have un-filed returns lurking in your past? LuSundra clarifies that while it’s important to file, you may not need to submit every overdue tax return. The key is assessing how far back you need to file to become compliant, typically at least the last six years.

Proactivity vs. Reactivity

LuSundra’s mantra is being proactive rather than reactive. “If you get to the government before they get to you, you have more options,” she advises. This is a powerful reminder that taking initiative can transform a potentially dire situation into a manageable one.

Debunking the Jail-Time Myth

One of the most pervasive fears is that tax issues will lead to jail time. LuSundra debunks this myth, stating that you don’t go to jail simply because you can’t pay. Active evasion, however, is a different story. The distinction is essential for understanding the real risks involved.

The Reality of Settling Tax Debts

She also tackles the alluring promise of “settling for pennies on the dollar,” a notion often heard in commercials. She warns that, while possible, it’s rare and typically reserved for those with virtually no assets. It’s essential to recognize that this is not a common solution and often comes with stringent qualifications.

Knowing When to Call a Professional

When is the right time to seek professional help? LuSundra makes it clear: the sooner, the better. Whether you foresee trouble on the horizon or you’re already in the thick of it, reaching out to a tax professional can provide guidance, peace of mind, and a pathway forward.

The Role of an Enrolled Agent

So, what exactly is an enrolled agent? As LuSundra states, “An enrolled agent is America’s tax expert.” Licensed by the Department of Treasury, enrolled agents are authorized to represent taxpayers before the IRS and state tax authorities, making them an invaluable resource.

What to Expect from a Tax Relief Service

For those considering seeking help from a tax relief service like ETS Tax Relief, LuSundra outlines a process that begins with a phone call. From there, the professional will assess the situation, determine the best course of action, and guide the taxpayer through the resolution process. It’s a step-by-step journey that requires patience but ultimately leads to resolution.

The Power of Perspective

She shares an eye-opening detail: the largest tax debt she’s helped resolve was $3.2 million. This perspective is meant to reassure small business owners that no tax problem is too big to tackle and that they are not alone in facing these challenges.

Taking Control of Your Tax Situation

Tax time doesn’t have to be a season of dread. With the right knowledge and a proactive approach, small business owners can navigate their tax responsibilities with confidence. By filing on time, seeking professional advice early, and understanding the IRS’s process, you can take control of your tax situation.

Key Takeaways

  1. File on Time, Every Time: Avoid the hefty failure-to-file penalties by keeping up with your tax deadlines.
  2. Be Proactive: Reach out for professional help before the IRS comes knocking. It’s about having more options, not fewer.
  3. Myth Busting: Knowing the facts can alleviate fear. Remember, you won’t go to jail for simply owing taxes.
  4. Seek Truth in Settlement Claims: Understand that settling for less is not the norm and comes with strict prerequisites.
  5. Call in the Experts: Don’t hesitate to contact an enrolled agent. Whether you need prevention or cure, they can steer you in the right direction.

Connect with LuSundra Everett, EA
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