As long as you run a business and pay employees, payroll taxes are inevitable.
Payroll norms like Social Security, Medicare, and income tax withholding from employee wages can get easily brushed aside with other “bills”. This, however, should never be done. A business will find themselves in trouble with the IRS if they fail to file and pay their payroll taxes. This behavior can even lead to large IRS penalties and debt, and in some cases considered a federal crime.
In mere matter of months, the original amount owed can increase exponentially because of penalties assessed by the IRS on delinquent payroll tax deposits or tax filings. Companies will find themselves quickly out of business if swift action isn’t taken to address business tax audits and payroll tax problems.
Even very successful businesses can crumble due to IRS payroll issues. The practice of using the proceeds from collected payroll taxes to pay a company’s operating expenses is still being done. This tax also includes FICA, Medicare, and Social Security. The misuse of payroll taxes is what gets ┬ábusiness’s in trouble with the IRS very quickly. The money collected from employees to pay their share of federal withheld tax does not belong to the business and must be accounted for and paid to the government. In general, a federal tax deposit must be made three days after the pay date of the payroll checks. This can be done by tax filing service, phone, or in person at a bank. If you are missing these payments, you will hear from the government.
The IRS will get aggressive in their tactics if they can’t get the payments from the company. They will begin to take action against officers, directors, owners, and others involved. The business will be shut down and the assets sold if the IRS can’t collect. At this point, your payroll problems are out of control. You’ll need a tax professional to help you find the solution.
Spectrum Tax Relief has the experience in helping companies of all sizes with payroll problems such as these.