If you are like many residents in Illinois, you may find yourself facing a large federal income tax bill that you are not able to pay in full by April 15. In situations like this, it is important to understand your options in order to avoid amassing a high level of penalties or interest charges that only make your already unmanageable tax bill even less manageable for you.
According to Illinois Policy, businesses with less than 50 employees created the vast majority of new jobs in the state of Illinois, accounting for 83 percent of new job growth in 2017. In fact, small businesses, which generated nearly 130,000 new jobs between 2011 and 2017, are the primary reason for the state's recovery from the most recent depression. That is more than 60 percent of all new jobs created in the state. Because of its reliance on small business, one might think that the state would thank mom and pop shops via tax incentives and small business-friendly legislature. Unfortunately, the opposite seems to be happening.
At one point, you may receive a letter from the IRS informing you of an audit on your Illinois business. This can be unnerving, but it does not have to be if you prepare for it. One thing to keep in mind, according to H&R Block, is the process can be lengthy depending on the method by which the IRS conducts the audit. The agent may do your audit by mail, at a local IRS office or in person. In person audits typically take the longest.