You know that as an employer, you are mandated to withhold taxes from your employees’ paychecks, right? You also understand that you must pay the IRS payroll taxes, correct? Do you believe that the IRS won’t notice that tax payments were not made? Even if the IRS does not contact you immediately regarding the failure to pay taxes timely, you can be sure that they will. Tax payments are due by April 30, July 31, October 31, and January 31 (for the fourth quarter of the previous calendar year). And depending on how much you owe for each quarter; you may be required to make deposits no less than monthly.
As a business owner, you are responsible for determining the correct amount of federal income tax, Medicare, and social security tax to withhold from your employee paychecks.
Failure to pay payroll taxes will result in penalties and interest on back taxes. You will ultimately find yourself dealing with IRS collections.
Failing to pay payroll taxes quarterly can mean penalties, even if you are withholding the taxes appropriately and were going to make an annual payment. Penalties can add up quickly, and it can be a challenge to catch up with your back tax payments.
If you have failed to remit your payroll taxes to the IRS, your personal property may be at stake. As a business owner, the IRS will find you personally responsible for the failure to pay taxes, and they may issue a lien or levy on your personal property. Not paying payroll taxes for your business could even lead to losing your home if you do not catch up with payments on time.
Even if you have not yet received a notice from the IRS regarding back payroll taxes, you should hire a professional tax resolution specialist to bring your taxes up to date. You can avoid the negative consequences of dealing with IRS collections if you take care of the problem as soon as possible.
If the IRS has already contacted you for the collection of payroll taxes, you can get help from Certified Tax Resolution Specialist, Jeffrey Schneider, EA, CTRS at SFS Tax Problem Solutions.
Contact us immediately for help.