Business owners often find themselves ensnared in payroll tax controversies.
These controversies often arise from the late payment of payroll taxes or classifying employees as independent contractors rather than employees. There are several settlement initiatives that can be helpful in these cases.
In other cases, payroll tax controversies arise where the employer fails to withhold or remit the payroll taxes to the government. This often comes up when a business is struggling financially. By withholding but not remitting payroll taxes to the IRS, the business has in effect taken out a loan from the government without the government’s consent.
Regardless of the cause, failing to timely pay over payroll taxes can result in penalties and interest in excess of the initial tax that wasn’t paid.
Our tax laws give the IRS broad powers pursuing businesses that have unpaid payroll tax liabilities. The IRS uses these powers and is particularly aggressive in pursuing businesses for unpaid payroll taxes.
This can put business owners in the position of having to shut down or sale their business, resulting in loss of employment and benefits for employers and employees and their families and loss of a hard-won business reputation. If that is not bad enough, the government may be able to pursue the business owner personally for the business’s unpaid payroll tax liabilities.
An experienced tax attorney can help you understand your tax obligations for your employees and help resolve your payroll tax problems.
Please call us at contact us online to schedule an appointment.or