If you owe back payroll taxes and fail to either file and or pay your federal payroll taxes, multiple penalties will incur on both the business and the officers of the company. The IRS requires that you withhold federal income tax, Social Security and Medicare taxes from your employees’ wages. How much should be withheld depends on the employee’s Form W-4.
These payroll taxes must be paid on a quarterly basis: March, June, September, and December to remain in compliance. Some small business owners may be eligible to file these taxes on an annual basis depending on the size of the company. Deposits can be made to the IRS electronically or by taking the deposit and required forms to a Federal Reserve Bank or other authorized financial institution. The IRS will then determine how often deposits are to be required, and they update these requirements each year, based on the companies annual payroll as reported.
Not only is your business at risk, but you may be personally liable for any or all IRS payroll taxes owed. If the IRS determines the business cannot pay it’s past due taxes, they will then focus on any individuals who the IRS deems as responsible and may assess the Trust Fund Recovery Penalty. This may result in a Trust Fund Recovery assessment.
If you owe back IRS payroll taxes the IRS will be very aggressive in its collection attempts. The penalties the IRS can assess to a liability can dramatically increase the amount owed in a very short period of time. The failure to make timely deposits is a large portion of these penalties.
Businesses and individuals owing IRS payroll taxes, CLG Professional Services™ may be able to assist in negotiating a plan for paying those taxes with the IRS so you don’t get assessed with a bank levy or lien. See if we can settle payroll taxes for you business.
Settle Payroll Taxes
CLG Professional Services
555 Republic Drive Suite 200 | Plano, TX 75074 | 214-383-5690
CLG Professional Services is not a Law or CPA firm