Payroll Tax Problems & Ways to Solve them

Payroll Tax Problems & Ways to Solve Them

Written by Martha De la chaussee

Payroll Tax Relief Expert

Payroll Tax problems result from various types of issues in a business.

One of the reasons is cash flow issues. Another could be payroll tax fraud by owners or others who have access to the finances of a business. Or, misapplication of federal tax deposits, misclassification of workers as independent contractors, miscalculations on payroll tax reporting, payroll tax audits in which there is a mismatch from the quarterly federal or state tax payroll tax returns and the W-2 Wage & Income Statements reported yearly.

Therefore, when seeking assistance in finding ways to solve your payroll tax audits or debts. It is important to know the reason for the debt. Or, seek professional assistance by experienced payroll tax relief experts who know how to identify the cause of a delinquency, verify compliance with tax agencies and determine a cure for your issues.

It is not as simple as just calling any tax resolution company or tax professional to resolve payroll tax cases. When dealing with the Internal Revenue Service and Employment Development Department for state payroll taxes. It is imperative that you find the right person who has the expertise and knowledge in this subject matter.

Your business and personal financial future can be at stake if payroll tax cases are not resolved in the correct manner. You may not like the resolution options. However, those options can be the only ways in which to save or determine the business turnaround or closure.

As you may well know, IRS and State Tax Collection Agencies do not wait for collecting on debt when businesses fail to correct their employee payroll taxes. Remember, businesses are entrusted to take money from their employee’s paychecks for those employee’s taxes, social security and Medicare. In addition, state tax withholdings.

When a business fails to report and pay these taxes it is payroll fraud.

This payroll fraud can land a business owner or those in financial control of a business entity to jail for payroll fraud. In addition, potential individual responsibility for the non-payment of payroll taxes of a company.

You can read the many criminal payroll tax cases that sent people to jail for this type of activity. Even when the issue was cash flow problems or payroll tax fraud by others. Proof of who is responsible lays with the person who is being charged.

Yes, there are resolution options even in potential fraud cases. However, the right tax professional needs to be hired to resolve your specific case for not all payroll cases fall into automatic payroll fraud, audit, cash flow or anyone of the reasons for the debt or audit.

Payroll Tax Resolution options include but are not limited to the following:

1) Immediately get current with federal and state tax deposits for payroll taxes.

2) Identify the cause of the problem. Is it a cash flow problem? Audit? Etc.

3) Get all your documentation, payroll tax returns, proof of payments, payroll

Records and notices or letters from the tax agency and seek professional help.

4) Research the company or person you intend to contact for tax assistance. Now

With the internet and websites like Linkedin, Facebook, Manta.com and others

One can look up the professional profiles of tax professionals prior to interviewing them for consideration prior to hiring them to represent you.

5) Not all tax cases require hiring Tax Attorney’s, CPAs or Enrolled Agents. However, keep in mind that these designated licenses are the only types

Allowed to represent clients before tax collection.

6) Make sure all tax returns have been filed. If any are not filed, negotiations can be delayed. Including filing of individual tax returns to date for all business owners, officers, members of entities who have financial control.

7) Financial Statements for the prior six months with back-up documentation are

Usually required to prove ability to pay and set up installment agreements,

Determine inability to pay, offer in compromise if feasible, and other options.

For free resources and additional information go to www.advocatetaxgroup.com