In Illinois, licensed business owners who fail to pay their state taxes can lose their privilege to stay in business. This article addresses some of those situations.
Local Business with Unpaid State Income Taxes
A former client, who had a cosmetology license with the Illinois Department of Financial and Professional Regulations for more than ten years, ran a successful hair styling business. Despite filing tax returns that indicated owed taxes, the taxes remained unpaid.
The client started receiving persistent demands from Illinois to settle the outstanding state taxes. Although no significant collection actions were taken initially, everything changed when her cosmetology license was revoked by the state. Shortly after, a Revenue Agent from the Des Plaines office of the Illinois Department of Revenue reached out.
The revocation of her license had various repercussions. Her primary worry was the potential violation of state criminal law if she continued business operations. Her source of livelihood was now in jeopardy. Moreover, any federal refunds she might have been entitled to would be intercepted by the state. With several years of unfiled returns and no means to settle the taxes,
the situation grew more challenging for her.
How Can You Settle Taxes with a Revoked License?
To address her tax problems after her license was revoked, the client’s ultimate solution involved reinstating her license. This involved her submitting an application for reinstatement and devising a payment plan. With our help, she was able to pursue tax settlements, known as an “Offer-in-Compromise,” with both the IRS and the Illinois Department of Revenue. Given the client’s inability to make a lump-sum payment for outstanding taxes, the offer included a monthly installment plan. Additionally, a provision for regular payment of current-year taxes was crucial for the acceptance of the offer.
As part of our negotiations, we also sought permission for the client to reapply for her license. This was a complex process, but as an attorney experienced in IRS matters, we were able to advocate effectively on her behalf, presenting legal arguments and factual analysis.
Taking prompt action would have significantly reduced the complexity of the process, however, while the resolution process involved multiple steps, each was essential in reaching a final settlement that satisfied Illinois requirements and was manageable for the client.
Finding the Solution
There are two points to take away here:
- There is a solution for any tax problem: Sometimes the problem is complex, but an experienced attorney can navigate through these tax problems.
- It is never too late to take action: The longer you delay, the more steps are required to correct the situation. But once you take action, a resolution is possible.
Take action. This year, this month, this day, begin fresh. Hire an experienced attorney to end your tax problems once and for all.
By: J. Anton Collins of Tax Law Offices Inc. Mr. Collins spent years at the IRS, then as a CPA, before becoming a tax lawyer. He is highly rated among tax defense lawyers. If you need a professional IRS tax attorney to help you, it’s time to reach out to Tax Law Offices today!