Can My Business Be Seized For Back Taxes? An IRS or state business seizure. It was an otherwise uneventful Monday morning in Topeka, Kansas, when local restaurant Annie’s Place was seized by the state for over $18,893.81 in unpaid sales taxes on July 23.

The owners were given until last Wednesday, July 25, to pay the taxes or reach an agreement. Otherwise, the state could sell the business to satisfy all or a part of the tax liability.

There has been no online update on the story from The Topeka Capital-Journal, the Aspen Times, or the WIBW TV station – all of whom reported on the story originally. However, at about 1:15 pm on Thursday, July 26, Annie’s Place announced on Facebook it would open at 12:30 that day.

This is good news for the restaurant that has been operating since 1990 under its current ownership.

Nonetheless, news of an IRS business seizure like this sends chills down the spines of business owners everywhere.

Can it Happen to Me? Can My Business Be Seized For Back Taxes

The short answer is yes. An IRS business seizure can happen to you. But not without plenty of warnings.

No taxing authority wants to own a restaurant or any other business. They are in the business of collecting taxes. Seizing an asset is an extreme measure that is usually only taken when all other collection methods fail.

What is the better question to ask?

How do I Avoid this Happening to Me?

Running a business is a very time-consuming endeavor.

You only have so much of this precious resource – 24 hours a day (of which a third is spent sleeping… if you are lucky enough to get the full 8).

Keeping track of taxes (and paying them on time) is best left to either an in-house bookkeeper or an accounting business if you can afford one.

After all, it’s not just about sales tax. There are payroll taxes and income taxes for the business to be concerned about. You must also keep track of your federal and state income tax.

By getting the expert help you need, you free up your time to work on your business – which puts money in your pocket that can offset the cost – but you have peace of mind knowing that your taxes are being paid accurately and on time.

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