Dealing with Payroll Tax Problems
If you are a a business owner who was unable to pay payroll taxes or paid your taxes late, you have probably been served a notice about non-receipt of your 941 payroll returns from the IRS.
It may seem like a good idea to hold off settling payroll taxes or to file payroll returns late if your business is having issues, but it isn’t. You’re adding IRS problems to your already growing problems and basically paying other debts with your employees’ hard-earned money.
Payroll Taxes
Your business’ cash flow problems will be increased if you fail to file payroll taxes on time because penalties and interest are accruing on your tax bill.
Failing to File Payroll Returns
Failing to file payroll returns when it’s due increases the penalties that the IRS attaches to them. These penalties may range from 5% per month up to 25%. Your tax issues are multiplying since the interest is compounding and penalties are adding up.
If you’ve received notice from the IRS regarding your payroll tax problem, contact us now. Dismissing this issue will only make it worse. The IRS utilizes enforced collection for entrepreneurs with payroll tax issues. Your business’ bank accounts, equipment, accounts receivable, and cars may be levied. You might end up out of business.
What happens now?
If the IRS has determined that you are accountable for the non-payment or late submission of payroll taxes, you are liable for the payroll taxes plus any penalties and interest that accrues. Suffice to say, you’ll be paying a Trust Fund Recovery Penalty.
Options
Assistance is what you need. Know your rights and a few other things, including if assets are likely to be seized, or if you can qualify for an Offer in Compromise or installment agreement, or even if the IRS assessed the correct amount.
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