Payroll Tax Problems

The IRS considers failing to pay payroll tax a serious offense, mainly because much of this tax consists of employee withholding. In the view of the IRS, not remitting your company’s payroll tax is akin to misappropriating employee fund.

Consequently, the penalty for not paying payroll tax and not filing a payroll tax return punctually is far more severe than for other tax delinquency. These penalty can quickly escalate the total amount owed.

If your business is delinquent on payroll tax, be aware that the IRS aggressively collects this tax. They often prefer to seize company asset, potentially shut down a business, auction off asset, and end operation rather than allow a tax liability to grow.

Should you find yourself behind on payroll tax, it is crucial that only a qualified representative handle meetings with the IRS. Your ability to stay in business might be greatly impacted by how you answer their initial question. Engaging a professional representative—like myself—who is well-versed in dealing with the IRS is essential.