Small-business tax debt
For small firms that owe delinquent payroll taxes, the Internal Revenue Service offers an option: an In-Business Trust Fund Express Installment Agreement. Small companies that owe $25,000 or less in payroll taxes can apply for this plan to pay the debt over 24 months without having to give financial information to the IRS. A firm that owes more than $25,000 must first pay down the debt to $25,000 to qualify for this agreement.
If the company owes between $10,000 and $25,000 in delinquent payroll taxes, it must permit the IRS to debit their bank accounts each month. While the agreement is in place, the company is expected to file any required tax returns and to remain compliant with their payroll tax obligations.
The Federal Trade Commission is warning companies and individuals about firms that advertise settling IRS debts for pennies on the dollar. They can’t and don’t perform.
For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.
He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.
An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.
