What To Do When The IRS Notifies You Of An Unpaid Commercial Real Estate Tax Obligation

Posted on: 24 May 2023


As a business owner, receiving a notice from the IRS stating that you owe more money on your commercial real estate taxes can be stressful and challenging. However, it's essential to understand that this type of situation is not uncommon and you can resolve it as quickly with the help of a real estate tax attorney.

Understand the Situation

First, review the information provided by the IRS carefully. Ensure that all the information they have on file is accurate and up-to-date and that you fully understand the basis for their determination that you owe additional taxes.

Depending on the tax situation, a real estate tax attorney can be helpful. They can review all the relevant documents and determine if the IRS made a mistake.

Consider Filing an Appeal

If you believe the IRS has made a mistake or their calculations are incorrect, consider filing an appeal. While difficult, it can also be a valuable tool for resolving disputes with the IRS and ensuring that you are treated fairly under the law.

However, filing an appeal is a complicated process requiring you to submit the proper documents and comply with all deadlines. Therefore, you should speak with a real estate tax attorney for clarification.

Come Up with a Plan if You Owe Any Taxes

If you agree with the IRS's assessment of your tax liability, you should work quickly to pay the amount owed. You can work out a plan with the IRS to pay in installments over time. The sooner you pay off your taxes, the fewer fines you'll encounter, and the less likely you will face other consequences.

Negotiate a Settlement

You could negotiate a settlement or compromise with the IRS that reduces the tax you owe. This approach can be practical if you demonstrate that you are experiencing financial hardship or that paying the total amount owed would cause undue hardship for your business.

The IRS is often willing to negotiate to avoid damaging the local economy or hurting your employees who depend on your business as a source of income. However, if the IRS resists negotiations, you may be more successful after consulting with a real estate tax attorney.

Ultimately, the key to successfully resolving a tax dispute with the IRS is to remain calm, stay organized, and seek professional advice and assistance to show that you're taking your tax obligation seriously and to keep the IRS informed.