When a business signs up with a factoring company, the factor may ask the client to sign a Tax Information Authorization or Form 8821, a form that gives the factoring company access to tax information for the years listed in the authorization. This often surprises businesses. With invoice factoring, a form of financing that relies more heavily on the creditworthiness of customers, it can be shocking to find out that your business needs to provides tax documents.
Topics: Tax lien, Business Financing
Tax time is rolling around once again. Preparing business taxes can be an arduous task, more so when there is the possibility that your business may actually owe money. A common practice is to file an extension and put off the inevitable. On some occasions, cash flow can be so tight that taxes are not paid and the government can impose a tax lien.
Topics: Cash Flow Solution, About Invoice Factoring, Tax lien
