Payroll Tax Problems
The “Kiss of Death” for a Small Business
But We Can Help!
As you can imagine, Payroll taxes are taken very seriously by the IRS. The money withheld from employees’ paychecks to pay their share of the federal withholding tax (FICA and Medicare) does not belong to the employer. These funds are held in trust for the government, and must be accounted for and deposited with the government.
When times are tight, a business may be tempted to use the payroll taxes to meet operating expense obligations. The IRS takes a dim view of this, and will act aggressively against the business and any Responsible Person. The huge penalties and debt generated by delinquent payroll taxes can quickly spiral out of control and bring an end to the business.
In addition, borrowing from the payroll tax will not only lead to severe penalties, but can land you in prison.
The potential penalties are nothing short of punitive. For example, failing to file the payroll withholding returns (Form 941) results in a 5% penalty PER MONTH! That can add up fast.
And even though the IRS might not come after the business for several years for the delinquent payroll tax liability, once it does, the IRS can be ruthless. The IRS is not particularly concerned with the survival of the business. Its attitude is basically that if the business has “stolen” the payroll taxes and can’t pay, then it shouldn’t be in business.
And if that is not bad enough, if you are the business owner or otherwise the person responsible for collecting, managing and depositing the payroll tax, you can be subject to a 100% penalty, known as the Trust Fund Recovery Penalty.
The IRS can penetrate the corporate or LLC veil, and assess this civil penalty personally on the responsible party. The key is to determine who has control of finances within the company, whether it is the owner, bookkeeper, or other employee. You will need the help of a professional to determine liability.
Payroll tax liability can be the “Kiss of Death” for many small and medium sized businesses. If you have payroll tax liabilities, get help before it’s too late!
There are solutions to your payroll tax problems, which may include Offers in Compromise, Installment Agreements or Non Collectible Status. But, you must act NOW! Waiting will only make the problem worse.
We can guide you through the steps necessary to resolve your payroll tax liability.
For a Free, No Obligation Consultation, contact us:
Please fill out our online form and find out what we can do to assist you.
Or call us at: 702.796.4000
From our offices in Henderson and Las Vegas, Nevada, our tax attorneys will provide aggressive, high quality legal services to clients with IRS problems.
So, if you have had the misfortune of falling behind on IRS tax obligations, and need help to get on your feet again, we have the knowledge and experience to help. In addition to resolving payroll tax problems, some of our other services include:
- Levy Release
- Installment Agreements
- Innocent Spouse
- Offers in Compromise
- Tax Court Representation
- Penalty Relief
Which ever option it right for you, it is important to take action now. Even if you do not have your W-2s or other information, we can obtain the needed information to get tax returns filed.
So, if you can imagine getting the IRS off your back . . . without having to speak directly with the IRS yourself, contact us now.
Please fill out our online form, or call to schedule your free initial consultation. Payment plans are available if needed.