Thursday, June 3, 2010
Are you a business owner behind on your payroll taxes?
If you are a business owner with employees and fail to file and pay your IRS Payroll Taxes, it will not go unnoticed. The IRS requires that you withhold Federal Income Tax, Social Security and Medicare taxes from your employees' wages. How much should be withheld depends on the employee's Form W-4.
These IRS Payroll Taxes must be paid on a quarterly basis: March, June, September, and December. Under certain circumstances, some small business owners may be eligible to file these taxes on an annual basis. Deposits can be made to the IRS electronically or by taking the deposit and required forms to a Federal Reserve Bank or other authorized financial institution. The IRS determines how often deposits are to be made, and they update these requirements each year, based on the annual payroll.
If you owe back IRS Payroll Taxes, the IRS can and will be very aggressive in its collection attempts. And the penalties the IRS can assess to a liability can drastically increase the amount owed in a very short period of time. The failure to make timely deposits is a large portion of these penalties.
And, not only is your business at risk, but you may be personally liable for any or all IRS Payroll Taxes owed. If the IRS determines the business cannot pay it's past due taxes, they will then focus on any individuals who the IRS deems as responsible.
If you owe back IRS Payroll Taxes, a business attorney or accountant may be able to help by designing a plan for paying those taxes and negotiating with the IRS so you don't get assessed with a bank levy or lien. If you are currently dealing with this issue contact The Out-House General Counsel to see if I can put you in contact with a tax professional who can help. I can also be reached at (951) 737-4040 ext.2.