Many small business owners, when cash flow doesn’t cover expenses, find the necessary cash by not sending in payroll taxes.
This is a big mistake. When individuals fail to file their tax returns, they may not hear from the government for ten years. When a company doesn’t file the document required for payroll taxes, IRS action is swift and severe. The government can freeze your company accounts, making it impossible to pay your suppliers and transact business. Not only that, but the penalties are so steep they can built up dramatically within just a few months. The IRS deals very aggressively with failure to pay payroll taxes; they can even seize the personal assets of the business owner(s).
If you owe payroll taxes, communicate immediately with the government to postpone all liens and levies while you resolve the situation. If you’re unequipped to correspond with the government on this matter, or you’ve already received a Notice to Lien from the IRS, hire a professional.
How We Can Help
The CPA’s at Tax Matters Solutions will act swiftly to postpone action on the part of the IRS, negotiate a penalty abatement and prevent further action. In many cases they have helped clients reduce the base liability, relieving the tax burden and increasing cash flow.
To protect your business, yourself and your own assets, in the case of delinquent payroll taxes, act immediately.