Business Funding with IRS Issues
If you have unresolved back-tax issues with the IRS, it is very difficult to obtain the funding you need for working capital to grow your business. Working with an experienced funding source can resolve your tax issues and provide necessary financing.
Founded in 1994, Paragon Financial offers FAST-GROWING companies an alternative to bank financing. When banks either WILL NOT loan or offer TOO LITTLE funds, Paragon promptly supplies a steady stream of cash through Invoice Factoring.
The Problems You May Face:
If you owe the government money, and you have not arranged with the IRS to make payment on that obligation, the IRS has the authority to issue a lien against your assets, including those that you have used as collateral for loans. This includes potential liens and levies against your accounts receivable – receivables you intend to factor for needed funding. In addition, the IRS is known to seize assets in the past without notification!
Many times the IRS does not even issue a lien, and will go straight to the “intent to levy stage” – where they will take possession of your assets if you do not make payment or appeal the intent-to-levy notice within 30 days.
Furthermore, the IRS often makes a “wrongful levy” – e.g., when a lender already has a prior secured interest or lien on the accounts receivable or other financial or physical assets. The IRS DOES NOT conduct a lien search prior to issuing a levy, and thus does not know whether the assets on which it intends to levy are being used as collateral. Even if the levy is wrongful, and the IRS had no legal right to those assets, it is very difficult, time-consuming and costly for you to get the assets back from the government.
If you are experiencing any of these back-tax-related problems, most financing firms will not even consider factoring your accounts receivable, leaving you with a shortage of necessary working capital. In addition, even if your attorney or CPA firm is working on negotiations with the IRS to settle your tax obligation, you will not be able to factor those receivables unless a payment deal is in place AND arrangements have been made for the IRS to subordinate or have an agreement in place with your funding source …
Paragon Financial Is the Solution …
Paragon Financial is ahead of the curve in dealing with the back-taxes problem. As a leading factoring firm for 23 years, we have the tools to ensure that you do not have any issues with the IRS that could hinder your ability to factor your receivables.
We have access to up-to-date information on IRS liens, levies, tax compliance history, business name discrepancies, accrued tax liabilities, and IRS installment agreements – every relevant piece of information we need to ensure that there is no risk of your receivables being taken by the IRS to fulfill back-tax obligations.
If you do have back-tax issues and cannot meet the obligation immediately, we also have the resources to help you negotiate a payment agreement and avoid the liens and levies that can obstruct your ability to factor your receivables with Paragon.