Hello there! We understand that having past-due payroll taxes can be quite stressful for you and your business. However, we’re here to help! With the current focus on tax compliance, it’s crucial to take action and avoid any potential consequences such as penalties, criminal investigations, and tax debt. Don’t worry, we can work together to resolve this issue promptly and efficiently. Let’s tackle this challenge with confidence and optimism!
Smaller businesses have a higher chance of being subject to this tax compliance because they are the largest group suspected to be responsible for tax avoidance and evasion. For this reason, the IRS targets these business owners, especially during critical economic times.
What Can Happen if You Have Payroll Tax Problems?
Suppose there are issues in your business’s tax payments. In that case, the repercussions can be detrimental, especially if the Federal Government takes on the extreme version of its tax compliance enforcement. Here are some issues you may face with the IRS and what you should do to avoid them.
Closing Down Your Business
First, the IRS is extremely powerful, and if it becomes aggressive, it can do a lot, from locking your business’ doors and shutting down your business’s operations. Plus, they can do that without getting it approved through a court order. They can seize or confiscate your equipment and machinery and even divert your account receivables towards themselves. Since the IRS has so much power and will use it against those who don’t file, deposit, or pay their taxes, dealing with payroll tax problems promptly becomes necessary.
Hefty Tax Bills
Another thing that can be a problem for you is the fines and the penalties; these can continue to add up to vast amounts. A hefty tax bill is the last thing you want for your business. The three hefty fines that you would need to worry about if you don’t solve your payroll problems are:
- Failure to File
- Failure to Deposit
- Failure to Pay
We want to make sure you’re aware that neglecting to pay taxes can be detrimental to your business. We’re optimistic about your success and want to help you avoid any potential burdens like a 33% interest accumulation, asset seizure, or closure.
Federal Crime
Not properly filing or paying your taxes, including those concerning payroll, constitutes a crime against the federal government. Your case can be put forward to the Criminal Investigation Division, leading to a matter referred to the Department of Justice if the IRS can prove that you intentionally avoided and evaded taxation.
Furthermore
It is illegal to use the money taken on behalf of payroll. It is common practice for many small and medium-sized businesses to do so in their operating expenses. However, it is clear that money collected for withholding tax, FICA, Medicare, and Social Security doesn’t belong to the business and must be paid to the government. Ideally, one must make a tax deposit three days after the payroll checks are issued.
The IRS can come after individual owners and shareholders for unpaid payroll taxes. It can use the Trust Fund Recovery Penalty (TRFP) against shareholders and owners. Even the thought of the IRS being able to snatch you behind the protective cover of the ‘corporate veil’ can send shivers down one’s spine.
What Do You Need to Do?
If you’re going to be audited or if you owe payroll taxes, it is recommended that you talk to a professional accountant or bookkeeper. It can be problematic if you don’t have expert help. Imagine being without a lawyer in a courtroom. It will be much easier to face an audit or handle a non-payment if you have the services of a Tax Attorney or a Certified Tax Resolution Specialist.
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