August 2010

Tax Issues with the IRS? 5 Outcomes to Expect

From OpenForum.com.

Dealing with the IRS is rarely something a small business owner looks forward to. Whether it's a notice requiring a tax audit or another specific tax issue, the uncertainty of the outcome often makes the process scary.

Border7 Studios recently experienced a brush with the IRS along these themes. AmyLynn Keimach, who heads the firm, explained the issue this way: "We recently received an outstanding balance from the IRS for an amount just under $3,000 for the year of 2008. As a small business and while dealing with our current taxes for 2009, this was an unexpected e-mail. They sent us the notice because the IRS stated they did not receive our K-1's and sent us back our entire 2008 tax returns. The K-1 was in the Tax Return and so we sent them a letter letting them know and re-sent our tax return. After speaking with some representatives at the IRS, they said that they didn't receive our letter."

Keimach's situation was uncertain for months. The IRS could have gone either way on whether the company would have to cover the $3,000 that the K-1 form addressed. Finally, Keimachit explained, it was resolved.

"After talking to several different representatives over the course of two months, the situation seemed hopeless and we would have to pay the amount. Luckily the last person we spoke with decided that since it was our first tax return with this company that they would waive it."

There are certain outcomes you can expect from the IRS though, and being familiar with those outcomes can make dealing with the IRS a little less scary.

Read more.