Payroll Tax Problems

Payroll Tax Problems – Important Things to Know

If you own a business, it doesn’t matter how large or small your business is, or how long you have been operating, ensuring your taxes are in order is absolutely critical. It can be a daunting experience when you try tackling your taxes yourself, which is why you may wish to consider hiring tax professionals to handle things for you. As a business owner, it’s vital in particular, that you understand payroll tax and how it works. As you own a business it is your responsibility to pay payroll taxes if you have employees working for you. When it comes to payroll tax problems, you simply must ensure that nothing is left to chance. Unpaid payroll taxes, or overdue payroll taxes, could result in very steep fines and the potential of you losing your business. Failing to pay these taxes will result in the IRS hitting you with interest payments and penalties, and nobody wants that. As far as 941 payroll tax problems are concerned however, one of the biggest problems is that business owners simply do not understand exactly how these tax payments work properly. If you aren’t sure then you’re in luck, because below we’ll now be listing a few important pieces of information relating to payroll taxes that business owners should be aware of.

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Failing to file or pay payroll taxes is classed as a federal crime

When it comes to payroll taxes, the IRS really does not mess around. Though you may not realize it, failing to file and/or pay your payroll taxes could result in you facing criminal charges, as this is a federal crime in the eyes of the law. Should the IRS deem the case severe enough, they can actually refer it to the CID, better known as the Criminal Investigation Division, which consequently, would then result in the case being referred again, this time to the Department of Justice. This may seem severe, but if the IRS has reason to believe that you deliberately failed to file and/or pay your payroll taxes, they can bring legal proceedings against you, which could potentially result in a prison sentence.

Failing to pay could result in you losing your business

By now you’re already aware of how extreme the IRS can be, and how serious they are, but things don’t stop there. You see, if you fail to pay these taxes, the IRS has the power to seize your business. This means that one morning you could arrive at work, only to find your doors locked shut, and your windows boarded up by an IRS revenue collection officer. These officers have immense authority and power and can close down your business in a matter of minutes. What’s more, they have the authority and power to do this, without even needing to obtain a court order. They have the authority to legally seize assets on the premises to help pay for the money owed, plus they can intercept funds incoming from regular paying customers of yours, through various levies implemented. As a business owner, this probably sounds like the stuff nightmares are made of, so obviously the advice here is to always pay your payroll taxes, or ideally, hire professional tax services to handle things for you.

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Small business owners are more likely to be targeted

Now, make no mistake about it, whether your business is large, medium, or small, if you owe money, the IRS will find you. They are brutally persistent and always get their money in the end. With that said, they tend to focus their attentions on small businesses when it comes to payroll taxes, due largely to the fact that statistically, small businesses have the worst track records when it comes to paying, or in this case, not paying, payroll taxes. That means basically that if you happen to be a small business owner, you simply must ensure your payroll taxes are taken care of on time, and correctly, because you and your business will be first in the line of the IRS’ fire.

You cannot legally borrow from payroll taxes

Over the years, many business owners have been found to have borrowed funds from payroll taxes to cover operating expenses and such like. They basically do the equivalent of leaving an IOU, and don’t see the harm in borrowing the money, as they intend to put it back. However, this is a very serious issue because legally, it is against the law to borrow from payroll taxes. The reason for this is that the money doesn’t legally belong to the business at all, it is technically the IRS’ money, and as you might expect, the IRS does not take kindly to people taking its money.

The IRS can directly pursue individual business owners

As if the above wasn’t enough to convince you to ensure that you pay your payroll taxes on time, and in full, how about this: Legally, the IRS has the power to directly pursue you as an individual if you are the business owner and owe payroll taxes. They do this via what is known as the Trust Fund Recovery Penalty, or TFRP, where they can pursue business owners and shareholders in the business. No other organization on this planet has the power to do this, so again, staying on the IRS’ good side is well, well worth doing.

You should consider hiring professional tax services

Unless you are confident that you are 100% crystal clear on how payroll taxes work, and what needs to be done, it is always recommended that you hire professional tax services, especially if you are being audited or owe back taxes. If you are audited or owe back taxes, it’s essential you hire the best professional tax services you can find, as not only can they help save you money, they could potentially help you to keep your business and avoid further legal complications.

Contact us today at 877-788-2937 for a free confidential evaluation.

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Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation! Marcie R.
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