Payroll Taxes Are Taken Seriously
When an employer withholds income tax and the employee’s share of Social Security and Medicare from paychecks, that money is held on behalf of the government. Because of this, the IRS treats unpaid or late payroll taxes more strictly than most other tax debts. If your business has fallen behind, acting promptly is important. Botwinick & Botwinick, CPAs PC helps Atlanta business owners understand their position and work toward resolving it.
How Payroll Tax Problems Start
They rarely begin with bad intent. A slow quarter, a cash crunch, a change in payroll provider or a bookkeeper who left can all cause deposits or filings to be missed. Money intended for taxes sometimes gets used to cover other bills, and the shortfall then grows with penalties and interest.
Personal Liability for Owners
Under the Trust Fund Recovery Penalty, the IRS can hold certain individuals personally responsible for withheld taxes that were not paid over, even if the business is a corporation or LLC. This can include owners, officers and others with authority over the company’s finances. If you have received a letter mentioning this penalty, contact us before you respond.
What We Can Do
- Review your notices and your payroll records to confirm which periods are affected
- Help prepare any missing or incorrect payroll returns
- Discuss options for paying what is owed, including payment plans
- Communicate with the IRS for you under a power of attorney (Form 2848)
- Help you set up a process so deposits and filings stay on schedule going forward
Getting Back on Track
The IRS generally looks for current deposits to be made on time while old amounts are being addressed, so it is important to fix the process as well as the debt. Clean books make this much easier. Our QuickBooks services and business tax preparation can support your payroll compliance.
For related help, see back taxes owed and tax relief.