If you have outstanding employment taxes on your payroll, then it is imperative to resolve your debt as soon as possible.
The IRS will then be able to mandate you to pay the amount of taxes that you owe to the government. If you are able to resolve your unpaid taxes, you will be able to regain your taxes and other debts. The IRS will also be able to issue a release of federal wage garnishments to you. That way, you can keep your business afloat and your employees will be able to continue to work. Your ability to sustain your business is crucial to your success as a business owner.
What Are the Ramifications of Not Resolving Payroll Tax Problems
If you are unable to resolve your payroll tax issues, the IRS will begin levying your bank accounts and garnishing your wages. As time goes on, your tax problem will become worse as the IRS increases your penalties and interest until you are unable to resettle your debt. If you continuously fail to pay your taxes to the IRS, then you can face severe legal sanctions. You may also be charged with a misdemeanor and be forced to pay a significant fine.
When you have payroll tax problems, it is imperative that you work with an experienced tax professional to help settle your debt.
How Does Payroll Tax Problems Begin
When you begin providing your employees with their pay, you are expected to withhold taxes from their wages. When you fail to pay taxes on behalf of your employees, it is known as payroll tax problems.
Every employer is responsible for reporting to the IRS the total amount of federal income tax, federal unemployment tax and the employer portion of Social Security tax that has been withheld from each employee’s paycheck. If you have under-reported your payroll taxes, then you are liable to pay the amount of money that you have under-reported.
If you have under-reported your payroll taxes and are unable to pay your back taxes, then you will have to face harsh tax penalties and other legal penalties. IRS will give you notice for being non-compliant with your payroll tax filing and deposits. Then you will get a letter about your penalty in which you have 60 days to appeal. Now, if you don’t reply, then the IRS will send you a Notice and Demand for Payment.
What Is the Worst Case That Can Happen
In this situation, the government will force you to pay your under-reported taxes on your current or future wages. If you cannot pay your remaining balance and if you continue to delay your payments, then the IRS will begin garnishing your wages. The IRS will also seize your assets and will take the money that is in your bank account. If you have no money in your bank account, then the IRS will begin auctioning off your assets. The IRS will take the money that is in your business bank account, your home, or any other cash or physical property that you own.
How to Resolve Payroll Tax Problems
If you have been experiencing payroll tax problems, it is important for you to take action before the IRS garnishes your wages or assets. If you have failed to file your quarterly employment tax returns, it is crucial that you file the returns immediately so that you are able to rectify your tax situation.
If you are unable to pay your taxes in a lump sum, then you are able to apply for an instalment payment plan, which will allow you to pay your taxes over time. If you are unable to apply for an instalment payment plan, then you are able to request a Collection Alternative, which will allow you to pay your taxes over time.
Payroll tax problems can arise whenever you fail to withhold taxes for your employees. If you fail to withhold payroll taxes for your employees, then you are exposing yourself to severe penalties and other legal repercussions. So, it is imperative for you to take action as quickly as possible if you want to avoid payroll tax problems.
Axiom Tax Resolution Group provides reliable IRS debt relief solutions for your business. Let us help you to resolve your payroll tax problems. Contact us today to get started!