Introduction
Running a small business in Maryland sometimes feels like juggling too many things at once. You’re keeping customers happy, paying employees, and trying to plan for what’s next. It’s no surprise that taxes can slip through the cracks — and when they do, back taxes and small businesses quickly collide. I’ve talked to plenty of Maryland owners who got that dreaded letter from the IRS or the Maryland Comptroller — the one that makes your stomach drop. If that’s you, take a breath. You’ve got options, and most of them are a lot more manageable than you think.
How Back Taxes and Small Businesses Impact Maryland Entrepreneurs
Once you fall behind, the numbers can snowball fast — interest, penalties, late fees, you name it. Maybe it’s a payroll deposit that didn’t clear or a return that never got filed. It happens.
For Maryland businesses, back taxes usually mean:
- Missed payroll or withholding payments
- Old income tax filings that never went in
- Sales and use taxes that piled up over time
Please don’t wait for the problem to fix itself. Check the Maryland Comptroller’s website for clear guidance on what the state expects and how to get caught up.
Relief Options That Actually Help
1. Set Up an Installment Agreement for Back Taxes
Your business can chip away at what you owe through a simple monthly payment plan. The IRS and Maryland Comptroller can set you up with a monthly plan that keeps collectors off your back as long as you stay on track. It’s a simple way to buy a little peace of mind, one payment at a time.
2. Settle Through an Offer in Compromise (OIC)
If paying everything isn’t realistic, an OIC might let you settle for less. You’ll need to show proof of hardship, but it can close the chapter and give you a fresh start.
3. Request Penalty Abatement and Interest Relief
We’ve all been there — a slow month, a late payment from a client, or a deadline that just slipped by. When that happens, the IRS and Maryland Comptroller may be willing to ease up. If you can explain the situation and show it wasn’t intentional, they might remove some of the penalties or interest.
4. Apply for Currently Not Collectible (CNC) Status
If money’s tight and you can’t pay right now, you can ask for CNC status. It puts collections on hold — no levies, no garnishments — just some breathing room while you get the business steady again.
5. Use Maryland-Specific Relief Programs
Maryland occasionally opens tax amnesty or voluntary disclosure programs that forgive certain penalties or reduce interest. It’s worth checking the Maryland Small Business Development Center from time to time; those opportunities don’t last long.
Why Working with a Professional Helps
I’ve watched plenty of business owners try to face the IRS on their own, and it rarely ends well. A tax resolution pro can step in, talk to the agencies for you, and work out payment terms that actually fit your budget. They’ll also make sure your accounts stay protected and your future filings go in without a hitch.
If you don’t already have someone helping, learn more about our Maryland tax resolution services — we handle these cases every day, and we’ll walk you through the process from start to finish.
Take Action Before the Problem Grows
When it comes to back taxes and small businesses, silence makes things worse. The earlier you reach out, the more tools you’ll have to fix it.
Call, email, or ask questions — even a short chat can save you months of stress. You’ve poured too much into your business to let tax debt take it away. Let’s get it handled so you can get back to running your business instead of worrying about it.