Just like private citizens, corporations are required by federal law to file and pay their taxes. When you have fallen behind on this obligation, you may live with the constant worry about what actions the IRS can take against you to collect the back taxes you now owe the government. You can remedy your delinquent taxes today by using these tips for filing your corporate returns and settling your tax obligation with the IRS.

Make Sure You Are or Were a Corporation

You may have wrongfully classified your business as a corporation when in fact the IRS categorized it as something entirely different. Depending on how much income you generated and how your business operated, it may actually have been a hobby business or sole proprietorship rather than a corporation.

If you are not sure that your business is actually a corporation, you should hire a tax professional to research this matter for you. Your tax pro can check with the Secretary of State to verify if the government classified your company as a corporation or as a hobby or sole proprietorship. This information will determine if you are genuinely late on filing your taxes and what type of return you should file with the IRS.

Having a tax professional work with you on this matter can also be vital if you want to safeguard your money and assets. Congress allows the IRS a wide range of options for collecting what people owe to the federal government. It can lay claim to your:

• wages or salary

• retirement and personal savings

• home

• investments

• business inventory

• business fixtures like the furniture and equipment

It can also shut down your business until you file and pay what you owe. Paying your obligation to the IRS can be expensive and difficult if you incur penalties that can go as high as 14 percent of what you currently owe to the federal government.

Remedying Your Back Corporate Tax Situation

The IRS will not ignore the fact that you have not filed or paid your corporate taxes. Even if you are a mere one year late, you put yourself in jeopardy of the IRS levying and seizing the assets you currently rely on for your livelihood.

However, you do have a number of options available to you to remedy your delinquent corporate tax situation today. First, if you are not prepared to advocate for yourself with the IRS, you should hire a skilled tax professional to assist you. Your tax pro can file your returns and act as your intermediary between you and the IRS.

Next, you and your tax pro should open and maintain the lines of communication with the IRS. The IRS can be relatively forgiving if you are completely honest about why you fell behind on filing and paying your taxes. You should have proof ready in case your delinquency was caused by an illness, disability, natural disaster, or other unforeseen circumstance that was beyond your control.

Depending on your situation, you may be eligible for a number of different options to settle your tax account. These strategies include:

• requesting an installment agreement

• asking for Currently Not Collectible or CNC status

• making an Offer in Compromise or OIC

• filing for bankruptcy, which may or may not forgive your total tax debt

Your tax professional can advise you on what method to take care of your back corporate taxes that you currently owe to the IRS.

As the owner of a corporation, you are obligated to file and pay your taxes on time each year. You can use these tips for remedying the fact that you have not filed your corporate taxes and now owe a tax debt to the IRS.