Are you concerned that the IRS may take action against your payroll taxes? Learn how an employment tax attorney can protect your business during a difficult time.
Businesses face various challenges, but one that can jeopardize their financial stability and future operations is a payroll tax issue with the IRS (Internal Revenue Service). Employee payroll taxes are important for backing social security, Medicare, coupled with other government programs.
Hence, failure to adhere to payroll tax obligations can lead to major financial and legal consequences, partnered with IRS actions.
If you are going through payroll tax issues, then partnering with an employment tax attorney can be your strongest ally.
At Mixon Tax Law, our panel of payroll tax specialists specializes in defending companies from thorough IRS employment tax actions. Comprehending the complexities of employment tax law and opting for personalized legal strategies to resolve disputes with the IRS can save your business from severe penalties or even worse.
What Are Employment Taxes?
Before we delve into how you can leverage an employment tax attorney, it is essential to understand what payroll tax is. How are they deducted from your employee’s wages by the company and remitted to the IRS? Additionally, the core purpose of these taxes is to endowment administration programs such as Medicare and Social Security.
However, for several small business owners, understanding the difference between payroll tax and income tax can get complicated. Unlike income taxes, which depend on an individual’s earnings, payroll taxes rely on employee wages and are levied on both the employee and employer.
Employers are answerable to ensure these taxes are collected and remitted to the appropriate government agency.
Failure to do so can be the reason for penalties, ultimately leading to legal issues with the IRS.
Common Takeable IRS Payroll Tax Actions
The IRS takes serious enforcement when it comes to employment tax. As a business, if you fail to comply with payroll tax laws, you may face various types of IRS actions, along with audits, levies, or liens. Below, we have listed common employment payroll-related IRS actions:
Payroll Tax Penalties
Delayed or inaccurate payments can lead to penalties. One of them is the late payment payroll tax penalty, which can significantly increase the amount you owe.
Payroll Tax Audits
The IRS conducts audits to make sure that businesses comply with payroll tax law. During these audits, the IRS will evaluate on what basis you have calculated and paid your payroll taxes.
Payroll Tax Liens
If a business is behind on payroll taxes, the IRS may place a lien on the respective business’s assets. Hence, a payroll tax lien provides the IRS with a legal claim to your property until the unpaid payroll taxes are settled.
If the IRS figures out how your company is non-compliant with payroll tax laws, the financial burden will be crippling to you. However, this is where an IRS employment tax attorney comes in.
How Does a Worker Classification Expert Defend Your Business?
An employment tax attorney is a dedicated proficient who can rapidly bring about the intricacies of payroll tax law and offer you with resistance plans that will guard your business from possibly overwhelming IRS actions.
IRS Representation
An employment tax attorney can act on your behalf as your representative during interactions with the IRS. This includes representing you during audits, responding to notices, and negotiating on your behalf.
At Mixon Tax Law, we have a proven track record of efficiently handling IRS disputes related to payroll tax and other complex payroll troubles.
Lien Defense
Suppose your corporation is going through a workforce duty lien. In that circumstance, the employment tax compliance attorney can work to release the lien through a negotiating session featuring a payment plan or an offer in compromise.
A lien can have severe consequences, such as damaging your company’s credibility or hindering your ability to get financing. Our IRS employment tax attorney will assist you in navigating through this stressful situation while minimizing the impact on your business.
Penalty Relief and Negotiation
A payroll tax expert can help you convey forfeits or appeals concerning Trust Fund Recovery Penalty Abatement. For example, suppose you are experiencing payroll tax form penalties. In that case, our employment tax expert can work to either help you minimize the penalty or eliminate it completely founded on a reasonable cause argument.
Employee Payroll Deposit Schedule Compliance
One vital component in avoiding payroll tax penalties is comprehending what determines an employer’s payroll tax deposit schedule.
The IRS weights companies to tail specific deposit calendars founded on the size of the payroll tax obligation. Whether you are on a semiweekly employment tax deposit schedule or another, failing to comply with these schedules can trigger penalties. Our worker classification expert will assist you in staying compliant and avoiding costly mistakes.
Consequences & Payroll Tax Non-Compliance
Non-compliance along with payroll tax laws does not just end in a snap of a finger. There are severe penalties that can contain:
Jail Time for Unpaid Payroll Taxes
In extreme cases, a deliberate fiasco to remit payroll taxes can result in hefty criminal charges, including potential jail time. The IRS takes strict action against payroll tax evasion, and businesses can easily face harsh legal consequences.
Asset Seizure
If the IRS places a lien on your possessions, they can eventually seize your goods or other treasured assets to gratify the debt. This includes vehicles, real estate, bank accounts, and more. Once your property is detained, the IRS can peddle these assets to recover the unpaid employment payroll taxes.
Payroll Tax Penalty
Failure to meet payroll tax obligations can result in penalties as high as 15% of the unpaid tax. The IRS takes immediate action to assess penalties for late filings, missed payments, and even inaccurate reporting.
Steps You Can Take to Prevent Future Payroll Tax Issues
It is typically more effective to take proactive measures rather than seek remedies after the fact. At Mixon Tax Law, our employer tax compliance attorney doesn’t just help our clients resolve payroll tax issues; we also help them put together a strategy to prevent them from happening again.
Employee Payroll Tax Planning
Proper tax planning can reduce the risk of employee payroll issues. By working with an employment tax attorney, you can set up a compliant and efficient payroll system that ensures timely and accurate tax deposits.
Compliance Review
Constantly reviewing your workforce tax fillings and procedures can categorize possible predicaments before they grow. Our IRS employment tax attorneys provide inclusive compliance evaluation solutions to guarantee that you follow state, federal, and local payroll tax laws.
Getting In Touch with Tax Law Firms
Employment tax law changes tend to change frequently, and it is convenient to fall behind. A worker classification expert will keep you posted on any amendments to the law and ensure that your business remains acquiescent with the newest regulations.
Final Thoughts
When it comes to dealing with IRS payroll tax troubles, the stakes are high, and not acting can lead to serious consequences for your company. Understanding the difference between income taxes and workforce taxes and how to tackle payroll tax penalties is vital.
It is crucial to work closely with an employment tax attorney who is well-versed in the law and can create a simplified defense plan tailored to your situation.
At Mixon Tax Law, our experienced employment tax attorneys are here to help you with your situations, protect your business, safeguard your assets, and provide you with peace of mind.