The year 2012 will go down in the record books as a difficult year for many small to medium sized businesses. With a lot of economic uncertainty in the air, including the fiscal cliff, the government sequester, and still-high unemployment rate, many are glad to put the year in their rear-view and look toward a brighter 2013.
If you are one of those businesses who were faced with a lot of challenges in 2012, you are not alone. For those who owe the government money in the form of back taxes, there are some options to consider. The IRS’s Fresh Start Program and invoice factoring financing may be available to help out businesses who have seen better days.
How Factoring Receivables Can Help with the Fresh Start Program
Recognizing the challenging economy, the IRS is offering a temporary tax relief program to help certain small business owners. Businesses that have not been able to file taxes and have gone through a significant decline in revenue may be eligible. If you qualify, the IRS may waive certain fines or late penalties giving you more flexibility and time to pay your dues.
Factoring Receivables May Enable You to Pay by New Deadlines
While the Fresh Start Program may forgive some debt and extend your deadline, you will ultimately still have to make your payment, and this is where account receivables factoring can help. Specialists at an invoice factoring company are familiar with common woes businesses face during tax season and are able to work with you to get you the money you need to meet the extended IRS deadline.
Invoice Factoring Services Can Enable Businesses to Meet IRS Obligations
Because factoring invoices relies on the value and assessment of your existing invoices rather than a credit score, a factoring company can work with a business with a less than perfect rating. Rates for factoring services are fair, stated up front and range from 4 to 6 percent in most cases so business can get up to 96 percent of their money to pay to the IRS.
With the IRS’s Fresh Start debt forgiveness program and the reliability of account receivables factoring, companies can get their taxes paid and get the IRS off their back.