My restaurant, LLC, has outstanding debt for sales tax owed from previous years. Fortunately, all current bills and taxes are being paid on time but I haven't been able to completely pay off this old debt. I have been making payments and trying to work with my agent but I just received noticed that the Tax Depart. issued a levy to my credit card merchant accounts. This means all my credit card funds from sales are going to be held until the whole amount is collected. Credit card sales account for a large percentage of my business and it would be nearly impossible for me to proceed without them. I do plan on paying all outstanding sales tax debt but need a little more time.
Can i process credit cards with another company in the mean time to buy me some time? Could this even be an option?
Sounds to me like you are not successfully working out a deal on the payment plan for the back taxes. You obviiusly need to do that because if you were under an agreement they would not have levied your bank account.
I don't think you would be precluded from opening another bank account at another bank and having a new credit card processing account at that new bank. But you need help right away.
This is not legal advice nor intended to create an attorney-client relationship. The information provided here is informational in nature only. This attorney may not be licensed in the jurisdiction which you have a question about so the answer could be only general in nature.
You need professional help yesterday. This forum will not be able to resolve your tax problems. Get local, professional help. If you were in a payment plan, they taxing authority should not continue with collection actions. If you go around the levy, you may be creating more problems for yourself. Get help!!
I hope this helps!
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
You're going to need to get a written agreement in place with the Tax Department in order to avoid further enforced collection; good faith payments only go so far and, in particular, may not count for much if your account was moved to another collection agent.
In addition to stopping enforced collection through levy, the other thing you need to be paying attention to is whether they are preparing to assess the unpaid taxes out against you personally. That can happen and once it does, they can start going after your personal assets as well as after business assets.
You could open a new account with another company, provided the other company is willing to do so.
If you haven't retained an attorney or experienced CPA to help you yet, now might be a good time.
My answer does not constitute legal advice and may not be relied upon by anyone for any purpose and does not constitute an attorney/client relationship or an offer to form such a relationship. This disclaimer is intended to be fully compliant with the requirements of Treasury Department Circular 230 and the terms thereof are fully incorporated by reference.
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