Small businesses owners need to be extra cautious when forming limited liability companies in order to prevent future IRS tax problems that could be financially crippling.

In a recent case, the sole member of a limited liability company was held directly liable for its company’s back taxes because the sole member failed to elect the LLC to be treated as a corporation for federal income tax purposes.

It is always a good idea to collect all the relevant tax information you need when you form a small business like a LLC so that you don’t run into severe IRS tax problems later. Protect your financial future by ensuring that you will not be held responsible for your company’s IRS back taxes. Here are some simple tax help tips for small business owners to consider when planning taxes.

CCH (http://intelliconnect.cch.com) reports:

Sole Member of LLC Personally Liable for Its Taxes Where LLC Treated as Disregarded Entity

The IRS could proceed with its collection action against the sole member of a limited liability company (LLC) for the LLC’s unpaid taxes because the member did not elect to have the LLC treated as a corporation for federal income tax purposes. Thus, the LLC was treated as a disregarded entity, and the sole member was personally liable for the LLC’s taxes. The member’s argument that she should not be held personally liable because she was not a responsible officer of the LLC was rejected.

It’s easy to let large IRS back taxes overwhelm you. It’s important for you to remember that you don’t have to flat-out accept your IRS penalties and fines. In many cases, you can get tax help from a tax attorney or CPA to obtain an IRS tax settlement or IRS penalty abatement that you can afford.

Tax Resolution Services is a team of expert tax attorneys, CPAs, and tax resolution specialists who are here to help you get the tax settlement you deserve. Call our office today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com

More Tax Help, IRS News and Tax Relief Tips:

1. IRS Tax Relief: Seven Common Income Tax Relief Myths That Can Get You into IRS Trouble
2. Tax Resolution News: IRS Warns Against Frivolous Tax Arguments That Can Incur Severe Penalties
3. Top Tax Help Tips For Taxpayers Looking to Settle Tax Debt With an IRS Installment Agreement
4. IRS Payroll Tax Problems: Are You a Responsible Party Liable for the Trust Fund Recovery Penalty?
5. Tax Help: How to Resolve Your Back Taxes & Prevent Tax Problems If You’re Short on Cash This Season

Tags: Back Taxes, delinquent taxes, IRS penalties, IRS penalty abatement, IRS tax problems, LLC tax help, small business tax tips, tax attorney, tax help, tax relief, tax resolution, Tax Tips

This entry was posted on Monday, December 21st, 2009 at 10:21 am and is filed under Back Taxes, Expert Help From Tax Attorney, Payroll Tax Problems, Penalty Abatement, Seeking Professional Tax Help, Tax news and tips, income tax relief, tax help. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.