Payroll Tax Problems
The money you withhold from employees’ paychecks belongs to the government – the employer merely holds the funds in trust. Failing to remit those funds is a sure way to incur the wrath of the government. Podraza CPA can help you resolve payroll tax problems before they spiral out of control.
The penalties that are assessed on delinquent payroll taxes increase dramatically in a matter of months and failing to take immediate action can trigger business tax audits, payroll tax problems and can even result in the government shutting down your business. The government is resistant to accepting offers in compromise because they will often assume the liquidation value of the business will exceed the offer you make and saving your business is not usually their first priority.
The problems don’t stop there, however, because if the business is liquidated and payroll taxes problems remain unresolved, the government can assess a civil penalty, known as a Trust Fund Recovery Penalty (TFRP), against any individual responsible for the disbursement of funds in the company. This can include officers, directors, shareholders and, in some cases, even accountants and bookkeepers that work for the company. TFRPs are not dischargeable in bankruptcy.
If you have fallen behind in paying your payroll taxes, don’t try to represent yourself. You risk losing your business, having your assets seized and being held personally liable for any remaining balance.
Call us before the situation gets out of hand. We are happy to offer you a free consultation to explore options for resolving your payroll tax problems.
If you have fallen behind in paying your payroll taxes, don’t try to represent yourself. We are happy to offer you a free consultation to explore options for resolving your payroll tax problems.