One type of tax debt a person could end up having is a tax debt related to the federal capital gains tax. This is a tax on profits realized from the sale of certain assets. There are many types of asset sales this tax can apply to.
One thing that can have very big impacts on a small business when it is audited by the Internal Revenue Service is how prepared it is going into the audit.
Interactions with the Internal Revenue Service can be much more high-stakes than your typical interaction. What a person does and how they act when it comes to such interactions can have considerable implications on them and their wallet.
When a taxpayer disagrees with a decision the Internal Revenue Service made in a tax matter involving them, one avenue they might have available is to pursue an appeal. IRS appeals can be very complex matters. One reason for this is the plethora of rules and practices the IRS has regarding the handling of such cases. Among these are practices regarding who within the IRS has the authority to make certain decisions, like settlement decisions, in matters related to appeals.