Payroll Tax Debt

Failing to pay payroll taxes is one of the most expensive tax mistakes a business can make, and the consequences can be quite serious. If you’re a business owner, we understand that you may be facing any one of these issues:

• You may not have understood the rules governing withholding and reporting requirements.

• You may not have sufficient funds available to cover payroll taxes.

• You may have too many employees who are exempt from withholding and reporting requirements.

If your business owes back payroll taxes, it’s important to understand that the IRS has the ability to assess penalties, evaluate criminal charges, and shut your business down permanently. It is important to consult with an experienced tax lawyer who knows the best steps to take to resolve this issue as soon as possible.

Who is Responsible for Payroll Taxes?

Federal law requires employers to withhold employees’ federal income tax and social security contributions from their paycheck. Employers must send these withheld amounts to the IRS quickly and file quarterly reports detailing the wages they have paid out and the amounts that have been withheld during the previous quarter. If an employer fails to do this, then he or she faces some of the harshest penalties administered by the IRS.

What Is The Penalty for Not Paying Payroll Taxes?

The penalty for failing to pay payroll taxes is 12% per year outside of an installment agreement and 6% per year when an installment agreement is in place.

What Happens When a Business Fails to Pay Payroll Taxes?

If your business fails to pay its payroll tax deposits, then it will be penalized with rates that are higher than almost any other penalty. For example, if a tax deposit is paid only 1 week late, the penalty will be 10%. If paying tax deposits late becomes a pattern, the penalties will grow exponentially.

How an Experienced Tax Lawyer Can Help with Payroll Tax Debt

Taxes can be confusing, but they don’t have to be. The best way to navigate your taxes is to hire a tax lawyer who has experience in dealing with IRS issues and can help you understand how it all works.

At JD Tax Law, we are a full-service tax law firm with a proven track record of success. We represent individual and business taxpayers in all aspects of tax resolution, including payroll tax debt. Our team has over 15 years of experience dealing with the IRS, and we have successfully resolved countless tax issues and provided relief for hundreds of clients.

To get a tax resolution plan that is tailored to your specific tax situation, please contact us for a free, no-obligation consultation.
Schedule a time that works best for you, or just give us a call now!