Leading accountant Pauline Ho founder of Laus Consulting Services LLC in Orlando, FL, advises small business owners that tax debt, while stressful, can be managed with structured planning and proactive action. For more information please visit https://lausconsult.com
-- Struggling business owners often have more options than they realize when tackling mounting tax debts, according to Florida CPA Pauline Ho.
For more information please visit https://lausconsult.com
Ho, founder of Laus Consulting Services, LLC in Orlando, explained that juggling tax debt while keeping a business running is challenging, but structured planning can help it stay afloat.
The first step is understanding the full scope of the debt. That means reviewing past filings, gathering IRS notices, and reconciling financial records to establish how the debt arose and prevent recurrence.
Tax debts arise for many reasons, such as unexpected expenses, slow seasons, missed filings, underpaid estimated taxes, payroll tax issues, or sales tax shortfalls. “Each carries different consequences,” Ho said. “Payroll tax problems are the most serious as money is withheld from employees and must be remitted promptly.”
Income tax debt, by contrast, typically builds slowly, especially for new entrepreneurs who underestimate quarterly payments. Sales tax shortfalls occur when businesses use collected tax revenue to cover daily operating expenses.
Ho stressed: “If you receive a notice from the IRS or state tax authority, don’t ignore it. Reaching out early can help avoid escalating penalties.” The IRS offers several pathways for small businesses that show a willingness to comply. These include instalment agreements, which allow monthly payments over time. Standard agreements are available for debts under $25,000, while larger balances may require more structured plans.
Businesses in serious financial distress may be able to settle a debt for less with an Offer in Compromise (OIC). Alternatively, if cash flow is severely restricted, a company may qualify for “Currently Not Collectible” (CNC) status, which temporarily pauses IRS collection efforts. Although interest continues to accrue, a CNC gives owners breathing space during difficult financial periods.
Ho explained that successfully managing tax debt means balancing repayment obligations with day-to-day operations. Strengthening financial discipline and internal systems is often essential, while proactive communication with tax authorities demonstrates good faith and can reduce the risk of harsher enforcement.
One effective strategy, she highlighted, is improving cash-flow management. This includes more accurate forecasting, tighter expense control, and actively managing accounts receivable. Creating a dedicated tax account and transferring estimated taxes into it monthly helps prevent accidental overspending and future shortfalls.
“Employing a CPA will ensure an owner won’t fall behind due to inaccurate or incomplete financial records,” Ho added. The accountant can also handle IRS communications, prepare documentation, and reduce costly errors, allowing the business to stay focused on growth.
In some cases, improving profitability may be necessary. Revising pricing, cutting overheads, or renegotiating supplier contracts can strengthen margins and make repayment more manageable.
She cautioned that discipline is required once a payment plan is established. Setting regular reminders and using automatic withdrawals will negate missed payments or late filings, which can void agreements and trigger renewed enforcement.
Ho concluded: “By addressing issues quickly and seeking expert guidance, tax problems can become a catalyst for better financial discipline and long-term stability.”
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Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814
Phone: 407-401-9768
Website: https://lausconsult.com
Release ID: 89183593
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