We Can Help You Prevent and Resolve Payroll Tax Problems
As a small business owner, you’ve likely experienced the challenges of managing payroll. Unlike larger businesses, you may not have the resources to hire an accountant or payroll expert. This increases your chances of making a mistake with your business’s payroll taxes and being audited by the IRS. You could be facing penalties that will seriously harm your business. So how can you avoid IRS problems while properly managing your payroll? The payroll tax attorneys at Midwest Tax Relief can help. Contact us today to learn more about how you can prevent and resolve your payroll tax problems.
What Are Your Payroll Tax Obligations?
Employers have strict obligations regarding payroll taxes. You must hold the income taxes, Social Security, and Medicare taxes that you have withheld from employees’ pay in trust. With these funds, you must turn the taxes over to the IRS in quarterly deposits. You must also file quarterly and annual reports to account for the amounts you withheld and deposited from the trust.
Common Causes of Payroll Tax Problems
Failure to pay payroll taxes on time is an easy and common mistake to make. As a business owner, you have a lot of pressing needs that need your immediate attention. You have rent, suppliers, and bills to pay. Forgetting to pay these expenses can instantly prevent you from conducting business.
Failing to pay payroll taxes, on the other hand, poses a more gradual threat to your business. Penalties and interest are imposed by the IRS for months before they take more aggressive action.
A common cause of payroll tax problems to watch out for is a temporary period of being short on cash. Your business may be going through a rough patch that you hope or know it can recover from soon. This could cause you to put off paying payroll taxes, thinking you will get to them when your revenues return to normal.
Businesses could also run into trouble because someone has not paid proper attention to payroll taxes. If you can’t afford an accountant or payroll employee, you could be responsible for paying payroll taxes. In that case, you might easily forget to pay payroll taxes. If you have the resources to hire an accountant or payroll staffer, they could turn out dishonest or incompetent. Putting your payroll taxes in the hands of an expert does not necessarily guarantee that they will be paid.
What Will the IRS Do If You Haven’t Paid Payroll Taxes?
Payroll taxes can become a problem for small businesses because of the burdensome number of paperwork and filing requirements. If the IRS finds that your business has unpaid payroll taxes, they can be very aggressive in punishing you. In fact, they can potentially destroy your business.
Payroll taxes consist of all your business’s federal income, Social Security, and Medicare taxes withheld from employee paychecks. The IRS cannot collect delinquent payroll taxes from a closed business. So, they pursue payroll taxes forcefully and harshly.
The tools that the IRS has in its arsenal to penalize you for not paying your payroll taxes include the following:
- Fines for late payment, failure to file, and failure to deposit;
- Late fees and interest on past-due balances, which can surpass the taxes you may owe;
- Levying bank accounts;
- Padlocking business doors;
- Property and asset seizure; and
- Diversion of payments owed to you.
If you have contract employees, you could potentially lose a lot more. Businesses with high contract labor deductions are more likely to be subject to an IRS independent contractor audit. The IRS could deem someone an employee whom you deem a contractor. If so, you’ll be liable for all payroll taxes for that employee for the entire time they’ve worked for you.
How an Experienced Omaha NE Payroll Tax Attorney Can Help
Without the help of an experienced tax attorney, payroll tax penalties can create insurmountable problems that might put you out of business. An Omaha Payroll tax attorney gives you options when you have payroll tax debt. If the IRS notified you of a payroll tax problem, your attorney can help you negotiate a settlement. You may be able to pay your debt under a manageable repayment plan. The IRS could also accept an Offer in Compromise that reduces the debt or a deferral that provides more time.
A skilled tax attorney will act as your guide through all the procedures the IRS makes your business undergo. During an audit, your attorney can help you deal with the many information and document requests. They can also negotiate the number and type of disclosures the IRS requires or requests.
Contact Midwest Tax Relief Today About Payroll Tax Problems
If you haven’t made payroll tax deposits or are being audited by the IRS, don’t lose hope. You have options that can prevent the IRS from decimating your business. Midwest Tax Relief can help your business negotiate with the IRS. To learn more about how to navigate your way through payroll tax problems, contact us today.