Payroll Tax Problems
Do You Owe Employee Withholding Payroll Taxes?
As a business owner of any size company, you are required to pay payroll taxes if you have employees. By law, you are withholding Social Security, Medicare, and income tax from employee wages as a part of normal business operations. You should be filing a quarterly federal tax return, otherwise known as a 941 Return and the annual Federal Unemployment (FUTA) Tax Return (940 Return).
Not paying your company's payroll taxes is the equivalent to stealing your employees' money in the eyes of the IRS. As a result, penalties for failing to pay your payroll taxes and filing your payroll tax returns on time are much more severe than other types of penalties. They can drastically multiply the amount you owe in a very short time.
If you are behind in paying payroll taxes for your company, WATCH OUT!!! The IRS gets very aggressive in pursuing the collection of this type of tax. They prefer to seize your business assets, close you down, sell your assets at auction, and put you out of business rather than allow you to continue amassing additional payroll tax liabilities.
If you are behind on your payroll taxes, DO NOT meet with the IRS on your own. The way in which you address their initial questions can determine whether you stay in business or not. It is critical you hire a professional, like Fajardo & Associates, to work together to find a resolution and if necessary will act on your behalf before the IRS to help you get caught up with payments and help protect you and your assets.