How To Handle Your Payroll Tax Problems

If you're a business owner and you've received a notice from the IRS about non-receipt of your 941 payroll returns, you may have paid your taxes late or been unable to pay your payroll taxes.

It may seem like a good idea to hold off settling payroll taxes or to file payroll returns late if your business is having issues, but it isn't. You are basically paying other debts with your employees' money and adding IRS issues to your growing problems.

Payroll Taxes

If you fail to submit your payroll taxes on time, the IRS will start adding penalties and interest to your tax debt. If your business is having cash flow issues, this will just increase your problems.

Payroll Returns

The IRS increases penalties if you fail to file payroll returns on time. These may range from five per cent per month up to 25%. Since penalties are accumulating and interest is compounding, your tax issues are also escalating.

Call us right away if you have gotten notice about your payroll tax problem. Ignoring the problem will only make it worse. The IRS uses enforced collection for entrepreneurs with payroll tax issues. This means the IRS can put a levy on the business� accounts receivables, cars, equipment, and bank account(s). The IRS can even put you out of business.

What's Next?

You will be paying a Trust Fund Recovery Penalty if found that the late submission or non-payment of payroll taxes was your fault, including payroll taxes and interest and penalties that accrued.

Your Options

You have to know what your rights are. Know if the correct figure was assessed. You should find out if you can qualify for an Offer in Compromise or an installment agreement. You must know if your assets are going to be seized. Someone should work things out for you.

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Originally posted 2008-01-22 05:10:01. Republished by Blog Post Promoter

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