Running a small business means juggling a lot — clients, cash flow, employees, and endless paperwork. Taxes often end up at the bottom of the list until something goes wrong. The truth is, most IRS issues for business owners start small and quietly snowball into serious problems.
At Tax Relief Heroes, Larry Kiyohiro, Esq., works with small business owners across Hawaii and the mainland to prevent, manage, and resolve IRS matters before they disrupt operations. As a tax attorney and former executive, Larry understands both the financial and legal sides of running a business — and how to protect it from unnecessary risk.
Why Small Business Tax Problems Happen
Even well-managed businesses can run into tax trouble. The most common issues include:
1. Payroll Tax Mistakes
Missing payroll deposits or misclassifying workers can trigger some of the harshest IRS penalties. The IRS considers unpaid payroll taxes a trust issue — and in certain cases, it can hold owners personally liable.
2. Unfiled or Late Returns
When cash flow is tight, filing or paying taxes often gets delayed. Unfortunately, the IRS adds penalties for every missed deadline, quickly compounding the problem.
3. Poor Recordkeeping
Without clear records, deductions are hard to substantiate and IRS questions are harder to answer. Inconsistent or incomplete bookkeeping can make even honest errors look suspicious.
4. Commingling Funds
Using one account for both personal and business expenses can blur financial lines and create audit headaches.
5. Underpaying Estimated Taxes
Self-employed owners often underestimate quarterly taxes, leading to surprise bills — and interest — at year-end.
How IRS Problems Escalate
Ignoring IRS correspondence or delaying responses allows minor issues to become major. What starts as a small balance can lead to:
- Penalties and daily interest
- Tax liens against business property
- Levies on bank accounts or receivables
- Payroll or income garnishments
Once enforcement begins, the IRS gains legal power to collect, and resolving the issue becomes far more complicated. Acting early — or proactively — is always less costly.
Preventing Tax Trouble Before It Starts
You can avoid most IRS problems with consistency and a few smart habits:
- File and pay all taxes on time, even if you can’t pay in full.
- Use dedicated business accounts for all transactions.
- Keep receipts, invoices, and payroll records organized.
- Reconcile accounts monthly.
- Work with a professional for quarterly tax reviews.
For clients who want peace of mind, Larry provides proactive compliance planning — reviewing filings, payment schedules, and record systems to catch potential problems before the IRS does.
When the IRS Is Already Involved
If your business has already received IRS notices, the best move is to address them immediately. Larry can:
- Communicate directly with the IRS on your behalf
- Stop levies, garnishments, or liens
- File missing returns
- Negotiate payment or settlement agreements
- Request penalty relief where justified
Having a tax attorney handle the process protects your business from aggressive enforcement and ensures that every step complies with IRS procedures.
Legal Protection for Business Owners
When tax problems affect a business, they can quickly spill into personal liability. Larry Kiyohiro, Esq., helps owners understand their legal exposure, especially in payroll or employment-related cases, and defends them through proper negotiation and documentation.
He takes a proactive, practical approach — focusing not just on resolving the current issue, but preventing future ones from ever reaching that point.
Contact Tax Relief Heroes
The best time to fix a tax problem is before it becomes one.
📞 Contact Tax Relief Heroes today to speak with Larry Kiyohiro, Esq., an experienced tax attorney helping business owners in Hawaii and across the U.S. protect their businesses from IRS trouble.