Are you looking for payroll tax debt relief services because you have fallen behind on your payroll taxes?
You’re not alone, as various employers face off with the IRS each year for failure to pay overdue taxes, but the consequences can be dire if this debt is not dealt with swiftly.
How Are Payroll Tax Debts Different Than Income Tax Debts?
Business owners are charged with withholding the appropriate funds from their employees and paying this tax to the IRS. This means your employees are relying on you to withhold the right amount and send it on to the appropriate channels—it’s their money that you are entrusted with, whereas with income taxes, the taxes in question are personal funds. If you fail to file and pay your payroll taxes, the debt is considered as a theft from your employees, resulting in aggressive action from the IRS.
What Must I Withhold from my Employees?
Employers are required to withhold payroll taxes, including Social Security, Medicare and Federal Taxes from their W-2 employees’ wages and remit the employees’ portion and the employers’ portion of payroll taxes to the IRS. In addition, employers are required to pay an unemployment tax for each employee that works for them. Employers must file IRS Form 941 and remit the employees’ and the employers’ portion of payroll taxes to the IRS usually on a quarterly basis. IRS Form 940 is required to be filed at the end of the year for unemployment taxes which is paid by the employer. If for whatever reason, the employer does not remit the fund for the payroll taxes, the IRS will assess penalties and work to collect the payroll tax by the means given to them by law including levies/liens and garnishments.
What if I Don’t File My Payroll Taxes?
Failing to file or pay your payroll taxes can be considered a federal offense. If the IRS deems it so, they can refer your case to the Criminal Investigation Division and the Department of Justice. Tangible consequences include the loss of your business. This may include seizure of company property, including inventory and machinery. In the most drastic of cases, failure to pay your payroll taxes can result in jail time.
What if I Own a Small Business?
According to the IRS, small businesses are most likely to fail to pay their payroll taxes, making them a target for more thorough investigation. As such, the IRS focuses its enforcement of regulations on small businesses more commonly. You also may be held personally responsible, seeing levies enforced on your personal and business accounts simultaneously.
Community Tax has knowledgeable and experienced tax preparers and tax negotiators to help you with your payroll tax debt relief services. Our tax preparers understand how to properly prepare your IRS Form 941 and 940 returns and remit your returns by the IRS deadlines or prepare timely after the IRS deadlines. Our tax negotiators know how to navigate the intricacies of the IRS tax code. Our knowledge of the IRS tax code allows Community Tax to negotiate the best resolution for our clients. First, Community Tax assesses your payroll tax debt. Then we provide a case review explaining your payroll tax debt issue include missing returns, tax balances owed and ways to resolve your payroll tax debt.
Do not wait for the IRS to commence enforcement actions like levies and garnishments. If you need payroll tax debt relief services, let Community Tax help you understand your payroll needs and offer solutions to resolve your payroll tax debt with the IRS. Call 1-800-444-0622.