Payroll Tax Problems

Payroll Tax Problems

Tax Relief: Falling behind on your payroll taxes is becoming a very common issue in today’s economy. The IRS takes its payroll tax very serious and will come after you, likely resulting in a dreaded IRS Tax Audit. Unpaid payroll taxes also causes exorbitant IRS interest and penalties increasing your total IRS tax debt to often unreachable levels, but is also federal offence. In short: these payroll tax problems can not only causing you to wreck your life and business but also give you some jail time – If you have been recently served with papers, don’t even finish reading this page, call now for help!

Payroll tax problems resulting in penalties and interest assessed on specifically delinquent payroll taxes or filings false documentation can dramatically increase the overall amount you owe in just a short time therefore turning a manageable tax bill into a life changing event. Normally, if you don’t take quick action to actually deal with a business or individual tax audit, payroll tax issues, as well as with overall business tax issues you will be out of business in a hurry because the IRS does not fool around. Tax relief is a real option.

Most businessmen who find their having payroll tax problems normally find it’s because they either skip one or even more payroll deposits or you innocently forgot to make your payroll deposit. To the IRS it really doesn’t matter if it was an honest mistake or if you simply skipped a payment because you were short of cash. So when you miss a single deposit, you will end up getting automated letters from your friendly IRS. The IRS letters may begin as nice reminders but very soon they will start threatening penalties, interest, personal fines and in some cases criminal action.

The IRS Will Aggressively Pursue Unpaid Employment Taxes

While the IRS aggressively pursues anyone who fails to pay their proper payroll taxes the IRS doesn’t desire to close or take your business or to start seizing your assets for the back payroll taxes. Keep in mind payroll taxes are a huge priority for the IRS because it’s considered a trust tax and their fore payroll tax debts are considered a first priority for the IRS. A trust tax is in which it’s your responsibility as the employer to collect taxes on behalf of the IRS, this is viewed as a trust action and failure to do so is a breach of that trust. It’s really much harder to negotiate with payroll problems because of this breach of trust.

One thing to beware of is something known as Cascading Penalties. This is when say you’ve only missed one payroll tax deposit and made all the following payments on time and in full, the IRS will usually apply the following week’s deposits to the missed deposit and continues adding up fees and interest going forward compounding your problem. So you end up paying penalties and interest on all deposits up to the date you misapplied your payment moving yourself into an untenable position.

Misclassifying Employees as Independent Contractors

Personal Responsibility for Payroll Taxes

What to Expect When the IRS Gets Serious

Can the IRS hold business owners liable for penalties and interest?

If you DON’T file or pay your payroll taxes. That’s one surefire way to raise the eye of the Internal Revenue Service (IRS).

Not only do unpaid payroll taxes typically result in big IRS penalties and debt – it can also be considered a federal crime. Other perils of not paying payroll taxes can include the loss of your business and freedoms taken for granted …

Could your business use some tax relief right about now?

Moreover, the IRS is typically less willing to negotiate a payroll tax settlement for unpaid employment or payroll taxes – such as monthly payments in an installment agreement – because the agency doesn’t have a stake in whether your business survives.

If you need tax relief you’d better know the law. Or, have some expert representation available. The stakes are too high – at risk is the loss of your business, seizure of assets and personal liability.