All business are required to file payroll taxes at regular intervals, whether you have just a few employees or hundreds. Payroll taxes are carefully monitored by the IRS and a failure to pay these taxes will quickly result in heavy fines and penalties. This makes it easy for payroll tax problems to add up, even with just one late payment. A failure to file payroll taxes once can quickly become a second time, then a third, and before long you have tens or hundreds of thousands of dollars in payroll debt. Though this can seem like an impossible obstacle, there are ways to resolve payroll tax problems.
Payroll Tax Problems: The Compounding Problem
Running a business isn’t easy, and sometimes money gets tight. When this happens, some businesses attempt to make ends meet by taking money out of payroll tax withholdings. While this money may be used to pay rent, utilities and keep the business operational, it also creates more debts and penalties. Once this practice starts, it’s hard to get out of, and the IRS does not make exceptions for businesses using their payroll withholdings to stay operational.
Payroll tax problems may also result from mismanaged accounts. You may be under the impression that payroll taxes have been paid properly, but accounting problems or document mismanagement resulted in inaccurate payments. Though this may not be a fault of yours, you are still required to pay any unpaid payroll taxes, and you are further required to pay penalties. When this happens, business owners may be completely unaware that they have not paid payroll taxes.
Payroll Tax Problems and the IRS
The IRS takes payroll tax underpayment or a failure to pay payroll taxes very seriously. To pay payroll taxes, the IRS can place liens or levies on property and even liquidate the business. To avoid these problems, it is essential to resolve payroll tax problems as soon as possible. If you are struggling with payroll tax problems and more penalties accrue every quarter, we can help you find a solution. By negotiating the unpaid sum and penalties with the IRS or by negotiating a payment plan, you can continue to operate your business and get out from under payroll tax problems.
Payroll Tax Problems Affect All Businesses
Payroll tax problems can affect a business with ten employees or a business with ten thousand employees, and everything in between. Document mismanagement or financial mismanagement can occur in any industry. Though this is a problem which is common to many different businesses, this problem can also be solved. A CPA with experience in tax code and IRS negotiations can help you find the best road to move forward. If you believe payroll tax penalties have been unfairly levied against you, you also have legal options. An expert tax law attorney will help you map out your options and pursue a case.