The IRS takes the responsibility for collecting accurate taxes from businesses all over the country seriously.
This government agency is notoriously aggressive when tax liabilities are underreported – especially when it comes to payroll taxes.
For small businesses, tax time is stressful enough without having to handle everything themselves. Tax preparers that specialize in handling and mitigating payroll tax problems can assist small businesses square away Form 941 tax and other payroll tax issues.
Common Form 941 Payroll Tax Problems
Calculating the tax burden for a specific business is never simple. Not only do businesses have to report the amount of income they pay each individual employee, but they also must report how much money that employees have paid into the Federal Income Tax, Social Security Tax, and Medicare Tax programs throughout the year as well.
Payroll taxes are only partially paid by employees, with the business covering the other half. And that’s what gets reported on the Form 941.
Things get a little tricky when this amount is either under reported (or over reported) to the IRS. Underreporting is a major problem, that can trigger IRS audits, fines, and other issues.
Potential Consequences of Unresolved 941 Payroll Issues
The IRS is particularly aggressive when it comes to making sure that all businesses are fully compliant and accurate with their Form 941 payroll situations.
The IRS isn’t shy about auditing any company they believe isn’t reporting their payroll tax information accurately. Audits are never fun, always time-consuming (and often expensive), and can open businesses up to even more serious tax issues.
If under or over reporting issues are discovered, it’s not unusual for the IRS to levy significant financial penalties. These penalties can get pretty steep, usually costing companies a lot more than if they had reported their payroll taxes accurately in the first place.
Liens can be placed on businesses as well, handicapping their ability to borrow and operate their business.
How to Find the Right Tax Professionals for Help
Hiring the right tax professionals can go a long way towards mitigating Form 941 and payroll tax issues.
Finding a tax preparation expert with experience mitigating payroll tax issues can significantly simplify the process of managing complex payroll tax issues. We recommend a business owner check out their tax preparer’s blogs, articles, or customer testimonials to get a better feel for what each tax prep professional has to offer.
It’s also important to find tax experts that are great negotiators. If Form 941 payroll problems are found the chances are good that the IRS is going to want to exact some sort of financial penalty. Top tax professionals can (usually) negotiate more favorable penalties and repayment terms.
Customized Payroll Tax Problem Help
We’d love to sit down and talk about your tax situation and how you can protect as much of your income as possible – legally, ethically, and responsibly.
If you’d like personalized help for navigating the often-confusing tax situation post-coronavirus, please don’t hesitate Robert Hall & Associates at your earliest convenience via the webform here, by phone at 818-452-2641 or reach me directly via email at [email protected]