Tax Relief Blog
Every business that operates in the United States is responsible for reporting certain types of information to the government. One of the most important things that a business must report is certain tax information for employment payroll on a quarterly and annual basis. They are required by the IRS to report the amount of 941/940 employment payroll taxes that have been either withheld from employees or what they owe to the government. If they fail to do at the prescribed time they will have a payroll tax problem.
Get a free case evaluation 1-877-78-TAXES [1-877-788-2937].
What are payroll/employment 940/941 taxes relief
Let’s discuss what is meant by payroll taxes before we get too far. According to the IRS and the US Tax Code, there are three separate taxes that constitute what a business is responsible for as far as a payroll tax to the Federal Government (IRS). The three taxes that makeup business payroll tax is income tax withheld from employees, FICA Tax (Federal Insurance Contributions Act) and Federal Unemployment Tax.
Employee Federal Income Tax – Employer is required to withhold a certain amount of taxes from the wages of each and every employee according to the latest published tax tables. That amount is reported to the IRS quarterly using the IRS form 941.
FICA – The employer is also required to withhold from each employee a specified percentage of their wages for Social Security Tax and Medicare Tax and the employer adds a matching amount to the IRS using the same IRS Form 941.
Federal Unemployment Tax – The employer also is required to pay a specified amount of money to the IRS as an Unemployment Tax, this money is not withheld from the employees. This payment is also reported quarterly on the IRS Form
Who is responsible for collecting and reporting of payroll taxes to the IRS?
All business owners are responsible for ensuring that payroll taxes are collected, the proper forms (IRS Form(s) 940/941 are filled out and submitted at the prescribed times and that all corresponding funds are sent to the IRS on time. Regardless of whether the business has one employee or tens of thousands, there are no exceptions to the requirement for withholding income taxes, FICA taxes from all employees and reporting the proper amount of taxes. The same is true of the Unemployment tax that the business must pay for each employee.
What are the consequences of not paying employment 940/941 on time? Get debt relief
If you have never owned your own business you would not have any idea what kind of payroll tax problems that can pop up and what can happen as a consequence if you happen to fall behind. The IRS is not something you want to have a problem with and you especially don’t want to owe the government any money.
The IRS (Internal Revenue Service) was created to administer the rules and regulations that are found in the US Tax Code. The IRS is an extremely powerful government agency that has wide-ranging powers in order to carry out its tax collecting duties. The consequences can range from, levying your bank accounts, auditing your company’s tax account to filing criminal charges.
Get a free case evaluation 1-877-78-TAXES [1-877-788-2937]. Tax debt relief
List of the possible things that the IRS can do you your business for payroll Tax Problems
Audit tax records – If the IRS determines that a company has not fulfilled its tax obligation, the first thing that they will do is perform an audit to determine the full extent of the payroll employment tax bill. Once the official audit is completed the appropriate penalties will be determined.
Assess fines and other penalties – depending on the outcome of the audit, if it is determined that there was no reason to believe that there was any willful act which led to the failure to collect and send the payroll taxes to the IRS chances are great that penalties and fines will be the only punishment that the business owner or responsible party will face.
Refer criminal charges for the responsible party – If the audit reveals that there likely is a reason to believe that the owner or the person responsible for taking care of the collection of payroll taxes information willing did not either collect the money from their employees or they simply refused to send the right information.
Tax Liens/Levies on company assets including Account Receivables – The payroll tax problem gets too serious, the IRS has the ability to place liens of any and all company assets. This includes but not limited to levying the businesses Accounts Receivables and wipe bank accounts. While these things might make it a bit difficult for a company to comply if they are having cash flow issues.
Seizure – As a last resort for recovering tax money that is owed to the government by a business for payroll tax problems and failure to report and send the money to the IRS they can seize any or all of the business assets.
Ways that business can remedy a Payroll/Employment Tax problems – Get debt relief
While the IRS does have a rather unpleasant reputation when it comes to collecting tax money owed to the Federal Government, there are ways that the IRS does make it possible for a business to resolve Payroll Tax problems as long as they have not determined any criminal acts have been committed.
When it comes to back taxes owed they do allow for a business to request an Offer in Compromise, allows for installment payments for taxes owed. They also have an appeals process that is set up to make it possible to appeal all IRS decisions. With all of that said, it is wise to have a solid tax representation firm on your side that knows how to deal with all of that and the IRS. These types of businesses are called tax representation firms.
Benefits of being represented by our tax representation firm – Get debt relief
While it is an extremely scary situation when it comes to dealing with the IRS, but the good thing is that you do not have to face it alone. While the IRS has a singular focus of collecting all of the money that is owed to the Federal Government, it does make concessions for a number of reasons. One of those major concessions is that it allows a business to have representation with them in all interactions with IRS officers/agents.
This means you can hire/retain a tax expert when it comes to tax laws and dealing with the IRS in general. This is where our tax representation firm comes in, Mike Habib specialize in all of the different aspects that surround tax law problems. Mike Habib can help you prepare for the eventual contact with the IRS after you have been informed that your business is being looked at for possible Payroll Tax problems.
Get a free case evaluation 1-877-78-TAXES [1-877-788-2937]. Tax debt relief
Mike Habib is an IRS licensed Enrolled Agent who represents taxpayers seeking 941 payroll tax debt relief representation in various metro areas such as Los Angeles, Whittier, Torrance, Pasadena, Glendale, Burbank, Irvine, Newport Beach, Orange County, Riverside, Corona, Palm Springs, San Bernardino, Palmdale, Bakersfield, NYC, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery, Tampa, Orlando.
