Payroll Tax Problems
When a business has an issue with failing to pay or failing to file payroll taxes, the IRS does not take the situation lightly. The consequences tend to be much worse for businesses than individuals – with an increased possibility of levies and seizures. First and foremost, it’s important to understand the specifics of this problem and what you can do to take care of it.
HOW DO PAYROLL TAX PROBLEMS HAPPEN?
If you own a business and have employees, you are probably all too familiar with the issues regarding calculating and paying payroll taxes. With all of the federal and state calculations for payroll taxes, it can be confusing to figure out how much to pay, how often to pay it and what to do if you find yourself in a situation where you can’t pay.
Many businesses either fail to calculate the correct amount of payroll taxes or fail to get their payroll taxes completed in a timely fashion. This leads to penalties, interest accruals and eventually, an unmanageable situation of business tax debt.
In addition to it being easy for a business owner to miscalculate or miss payments for payroll taxes, the state or IRS may not notice the problem for months or even years. Over that time, penalties and interest accrue while debt grows to the point that it becomes difficult to pay the taxes, penalties and interest in full.
WHAT CAN YOU DO?
If your business is facing payroll tax problems, you need to develop a strategy for resolution as soon as possible. You may be familiar with tax attorneys, but Enrolled Agents are more specialized tax professionals. To read more about what an Enrolled Agent is and how they can assist you with your tax issue, download our free guide.
If you have other questions or feel that you are ready to develop a strategy, you can speak to a tax specialist today.
You’ve made the right first step by coming to 20/20. Our partnership with payroll service provider Automatic Data Processing (ADP) means our clients have the option of customizable payroll services in addition to our expert help negotiating any outstanding payroll tax liabilities.
Dealing with this issue should be your top priority. Now is the time to resolve your tax problem and get back to doing what you do best – running your business.