Filing taxes on behalf of workers is a complex process that all businesses, including startups, must deal with. One of those forms is the IRS 941, which includes the quarterly tax returns for each worker, including amounts for Federal Income Tax, Medicare Tax, and Social Security Tax.
If you’re experiencing issues with payroll taxes and need help paying them or resolving them, it’s better to seek help sooner than later. Here are some of the common IRS 941 payroll tax problems and how you can deal with them.
What is the IRS 941 Form?
The IRS 941 form is an employer’s quarterly tax return that reports wages, taxes, and other withholdings for employees who worked for the company during the year. It’s basically the primary tax form used by employers in the United States to report the income taxes and social security taxes that have been withheld from their employee’s paychecks.
Form 941 is used by employers to file quarterly income tax and social security tax returns. The form is filed with the Internal Revenue Service (IRS), and the taxes reported on it are to be remitted to the IRS.
What to Do if You Have Issues with Your 941 Payroll Tax
The most important thing you can do is get help as soon as possible. The more time that passes, the more severe the penalties and fines you could receive from the IRS. And the more difficult it will be to resolve what you owe.
That’s why you need to hire a tax professional that can keep you informed about any changes. Since payroll taxes are complex and complex, changes can happen at any time, you need a tax professional that can help you stay updated and fully informed about these situations.
1. Getting a Tax Extension
If you have neglected to file your 941 tax returns, you need to get a tax extension so that you have time to finish them. You can file for an automatic tax extension for up to six months by filing Form 4868. You can also file for an extension for up to 12 months by filing Form 7004.
2. Paying Tax Liens and Penalties
If you are late filing your payroll tax returns and you owe money to the IRS, the IRS may seize your property, including your car or home. You can resolve this by paying the back taxes you owe. You can make a payment by paying online, or you can pay by check or money order.
3. Paying Tax Bills
If you have already paid your taxes for last year but made a mistake on your taxes, you can request a refund by filing Form 1040X. This is done by filing an amended income tax return.
4. Paying Insurance Premiums to Receive Earned Income Credit
If you receive the Earned Income Credit and you are self-employed, you may have to pay self-employment tax to receive the credit. If you don’t, you may lose the Earned Income Credit. Make sure that you pay your self-employment taxes by either contracting a payroll service or by filing your own self-employment tax returns.
The IRS 941 form is not difficult to complete, but it can be confusing if you are not well-versed in tax law. If you need help preparing and filing your 941 payroll tax forms, it is highly recommended that you hire a tax professional who can provide some guidance.
At Axiom Tax Resolution Group, we believe that ignoring tax problems is a costly mistake. That’s exactly why our team is here to help struggling taxpayers and business owners keep up with their tax filings and resolve any issues. Whenever you need a tax resolution specialist you can trust, go to Axiom Tax Resolution Group. Contact us today to get started!