Payroll Taxes Piling Up? How to Get Business Tax Relief
Do you owe back payroll taxes to the IRS? If so, you're likely wondering what your repayment options are. Failing to make arrangements to settle this debt in a timely manner can put your business at risk. The good news is that you can get business tax relief from an IRS installment payment plan.
Possible Consequences of Unpaid Payroll Taxes The IRS takes unpaid
payroll taxes very seriously. Legally, failure to submit these taxes each quarter is a crime and business owners can be subject to imprisonment for neglecting this requirement. Along with jail time the IRS can also levy substantial financial penalties for non-compliant employers. 16 days after the deadline for filing your Form 941 you can be subjected to a 33 percent penalty in addition to the original tax owed. If the debt remains unpaid the IRS has the authority to close your business and intercept any payments from your clients to settle the debt. Once the IRS decides to pursue your business for failure to submit payroll taxes the agency can also take action against anyone connected to the business including employees, accountants and shareholders.
Get Assistance from a Tax Professional Since the IRS takes such a strong stance against companies that owe unpaid payroll taxes it's wise to get assistance from a tax professional that has experience dealing with this particular issue. While you have the choice to represent yourself in these proceedings doing so can be overwhelming, especially if you don't know all of your tax settlement options. Hiring a
tax resolution specialist can ensure that you get access to the tax relief provisions that are available to you.
Take Action Right Away Whatever action you decide to take it's essential that you do so right away. Waiting too long can give the IRS time to close your business, place you in jail or investigate all of your employees. As the time goes by the amount of your penalties and interest also add up quickly. Even if you're able to keep the IRS from physically closing your business the amount of debt you may have to pay back can be enough to sink your company. If you set up an IRS installment payment plan, however, you'll have the opportunity to decide how much of your debt you can repay so that your payments don't swallow up your operating income.
Settling a past payroll tax debt with the IRS can be intimidating. Seeking the advice of a qualified tax resolution specialist, though, can help you get through this process without negatively affecting your business's bottom line.
*Image courtesy of Flickr
