Last week I was meeting with a client, who was struggling a few years ago and is now on the rebound.
But that in itself is the problem. When their business was struggling for income, they were forced to use up their reserves and got into debt.
Even though the business was struggling there were some tax liabilities, the income was used to keep their home and feed themselves.
Now that things have improved the debt repayments and the tax issues are growing. They are trying to constantly play catch up. Throw in a health dose of health issues and it seems an even greater struggle to make ends meet.
She brought up the idea of making a deal with the IRS. But as I pointed out with the “recovery” in a forward progression and the income levels where they are, it seems unlikely that Uncle will be taking pennies on the dollar – regardless of the radio ads to the contrary.
All they can do is grow the business and address the past. It helps that the business is growing and expanding its core services.