Payroll Tax Problems

How Do Payroll Tax Problems Happen?

Perhaps the most common problem we see with small businesses concerns payroll taxes. The IRS sends thousands of letters or notices every week on small businesses and have failed to file their payroll tax returns, paid payroll taxes late, or you simply made a mistake on their payroll tax returns.

When many businesses start to have financial problems one of the first things that happens is the failure to pay payroll taxes or file its payroll returns on time. This is all too common! Non-filers can usually expect a federal tax lien to be filed which may damage your business reputation and likely stop your ability to obtain financing. Federal tax liens will often stop your ability to obtain financing long after the taxes are paid.

What Does the IRS Do When You Have a Payroll Tax Problem?

The Internal Revenue Service (IRS) looks harshly upon employers who owe payroll taxes! It does not matter that the business may have suffered financial losses and was unable to pay it payroll tax obligations.  Both the IRS and state taxing authorities treat the non-payment or late payment of payroll tax liabilities by employers much differently than other taxes you may owe.

To begin, the IRS will begin by mailing a series of letters reminding taxpayers of the late or delinquent filing of the returns or payroll taxes. Similarly, ridiculously high penalties will begin simultaneously.  When the not-so-friendly reminder letters have no response, the IRS will take more serious actions … read more

What to Do When You Have a Payroll Tax Problem

The first, most obvious action you can take is to pay your taxes! As simple as it may seem, the payment of your taxes, or partial payment with an intent to pay your taxes is the best approach.

When you just can’t pay your taxes currently, you may also arrange to pay these taxes over time. The IRS has the power to collect these taxes for a long time and will patiently wait where you can show that you can pay your taxes timely going forward and can arrange to make installment payments on the back taxes.  Finally, there are tax debt settlement programs available where settlement through other options do not apply.

How We Can Help You

Professional representation is important in almost any tax matter. The correction of tax deficiencies and obligations can often require a significant amount of paperwork and tax planning. You need people working for you that are knowledgeable of tax law and experienced in working with the IRS.

We can help negotiate reasonable payment terms and conditions that you can live with. In some cases, where it appears you just can’t pay what you owe, we can get your taxes reduced to an amount you can afford.