Resolving Employment Tax Issues For Businesses
For a variety of reasons, businesses fail to timely deposit payroll taxes. Often, it is due to difficult financial times that lead to a lack of funds. However, the IRS considers nonpayment of payroll taxes to be a serious problem. Often, aggressive collection activities result.
- Has your company or business failed either to file returns or deposit payroll taxes timely?
- Is the IRS threatening to shut your business down?
- Is your bank account being levied?
- Did the IRS issue tax liens against your business?
Contact the law offices of The Peck Group, LC, in Atlanta, Georgia. Our experience can be put to good use for you as we review the specifics of your situation and determine the best legal remedies for you as an individual and for your business. We represent businesses throughout the Southeast and across the nation in cases involving the IRS and federal taxes.
In many instances, penalties can be removed or reduced. In other instances, settlement or the establishment of an IRS payment plan may be your best options. Do not give up.
You Can Be Held Individually Liable For Payment Of Payroll Taxes
Remaining compliant with employment tax obligations is one of the most important issues for businesses of all sizes. Business owners can be held individually responsible for unpaid employment tax, penalties and interest. In some cases, the IRS seeks to name employees who are not business owners as “responsible persons” subject to the same liability.
An employment tax issue can threaten the solvency of your business and your individual assets. You must act quickly after you are named as a “responsible person” to avoid liability that could accrue in addition to your business liability.
Time Is Not On Your Side
No two employment tax cases are exactly alike, but one thing is for sure: Employment tax problems do not disappear on their own. Penalties for nonpayment of employment taxes are extremely severe. The more employment tax issues are ignored, the more limited your options become.
Frequently Asked Questions On Business Employment Tax
Below are answers to common questions business owners often ask.
What are the common reasons businesses fall behind on payroll or employment tax deposits?
Several factors can cause a business to miss payroll tax payments, including:
- Cash flow problems
- Bookkeeping errors
- Unexpected expenses
- Lack of awareness about filing deadlines
In some cases, business owners prioritize vendor payments or rent, unintentionally neglecting tax obligations.
What immediate steps should I take if I have missed a payroll tax deposit or filing deadline?
File the missed return as soon as possible and pay whatever portion of the tax you can. Then, contact a tax professional or the IRS to discuss next steps. By treating the issue with urgency, you may reduce penalties and interest.
What actions can the IRS take if my business fails to pay employment taxes?
The IRS takes payroll tax issues very seriously. They can:
- Impose heavy penalties and daily interest
- Issue tax liens or levies against your business assets
- Conduct audits or investigations
- Pursue responsible individuals under the Trust Fund Recovery Penalty
These consequences can severely impact your operations and finances.
What does it mean if my bank account has been levied due to unpaid payroll taxes?
A bank levy means the IRS has frozen your business account and seized funds to cover the unpaid taxes.
This action comes after several warnings and notices. It can halt business activities and must be addressed immediately.
What is a federal tax lien, and how does it impact my business?
A federal tax lien is a legal claim by the IRS against your business’s property, including real estate and receivables.
It can damage your credit, limit borrowing options and discourage vendors or partners from doing business with you.
What options are available to resolve payroll tax debt with the IRS?
Business owners may qualify for several solutions, including:
- Installment agreements
- Offer in compromise (OIC)
- Penalty abatement requests
- Currently not collectible (CNC) status
Each option has requirements, and we can help you choose the best path forward.
Call Us For A Free Half-Hour Consultation About Payroll Tax Problems
You do not have to face the IRS on your own. Call The Peck Group, LC, at 770-884-6914 or contact us online to arrange a free and confidential consultation about your employment tax problem. We represent businesses large and small throughout the United States in employment tax disputes.