It’s best to get current, one year at a time. The tax agencies, IRS and State Franchise Tax Board want to see that you’re not evading taxes and are in the process of following the tax laws.

This is more common than you might imagine. For this very reason, both the IRS and State have installment plans to make monthly payments–even up to 6 years. In more extreme cases, there is an opportunity to file for an “offer in compromise” and request a greatly reduced modification to the amount of tax owed.

This is becoming more common, tax agencies have been making significant mistakes. Unfortunately, the tax payer has to contact the IRS or State to clear up the matter. You will need the notice you received and a copy of your tax returns and/or other records. You may even want to request a free “transcript” online to see what adjustments the IRS may have made.

Yes, bookkeeping is essential to evaluate your business and is necessary to file your annual tax returns. Please see the top menu BOOKKEEPING page for details.

It will be valuable to review the options of a business structure such as an LLC, partnership or corporation which may save you substantial tax deductions. They also provide legal protection against personal losses in the case of suit.