Receiving a tax notice is not good in all ways. But, the payroll tax problems are enough to spin your head. As, they are different from the personal taxes. It is also a matter of fact that about 53% of the people are not paying payroll taxes. And, so it makes sense for IRS to get it fully.
The IRS can do all over it to make you nasty. It may liquidate your assets and can shut down your business. In the worst case, it can put you in court.
How Do Business Owners Actually Get Into Payroll Tax Trouble?
Mostly, it happens when you have left with too much amount of money to pay. And, business owners continue in taking the short-term loan from their employees, in the form of payroll taxes. While, on the other side, some people intentionally try to do this and defraud the government. And, thus, get themselves into trouble of paying payroll taxes.
Why the IRS Takes Payroll Tax Issues So Seriously?
As the payroll taxes are said to be Trust Fund Taxes. It is the entrustment of money that belongs to the employees. So, it must be the responsibility of employer to withdraw a portion of money from their income and share with the government. So, the employers who don’t make their employees to get paid with this tax are considered as stealing.
In the eyes of IRS, money is not only yours and you must have to pay for it.
Why You Must End Your Payroll Tax Problems Today?
Here, are some reasons defined, that will get you acknowledged why it is a big deal for the IRS. Owing IRS is different from owing a bank or credit card. The government has granted them the special powers to take money by reaching into your bank account. They can take your real estate, cars, boats, houses, social security benefits, and the loan value of your life insurance. In fact, it has been seen in some cases, that the commission received by the company is also seized by the IRS.
While, if you have tried to defraud them, they can put you in jail. In addition to that, it has all the rights to do these with you. It can shut down your business without any court notice because, a person could not discharge from any payroll taxes, even he is dealing from bankruptcy. Personal assets may be seized out for satisfying their business payroll taxes. It is considered as a federal crime, if proven by the IRS with proof and you have not paid yet.
Lastly, if still you are being responsible and has not paid the taxes fully, the IRS may assess the Trust Fund Recovery Penalty (TFRP), against you.
The IRS Would Rather Close Your Business If You Have not Deal With Payroll Tax Problems!
IRS is not interested in working out with your payment plan at all time. Because, if you fail to pay with the installments, in the end, there will be a bad situation for you. Plus, you may have to deal with the increased amount of payroll taxes. Since, IRS has all the rights to close down your business, it is not a big deal to them to do so.
Closing with your business is not good for you, and in any way. However, you can open your business, if you have a professional law person, who can speak on your behalf or there are many tax settlement companies who are ready to make you get rid of these problems. To make IRS convince and believe, that they will be paid only if you will continue with your business.
Sleep Like a Baby Tonight!
By reading this, one can pretty sure that payroll tax problems can make you sleepless nights and hectic days. So, it is important to understand your behavior towards this problem. It is said to be a financially fatal disease. Consult any attorney, who can fix your tax problems and can fight with IRS on your behalf.
This is serious. Don’t wait a minute. Give us a call, if you still stuck in any payroll tax problem or any other tax related problem.