If you own a business in Florida and have employees, you're responsible for depositing payroll taxes. Not only are they required by state and federal agencies, they're a "cost of doing business" and unfortunately, sometimes financial difficulties cause businesses to fall behind in their obligations. The good news is, if you are behind or falling further behind in payroll taxes, Florida Tax Relief can help you. Particularly if you are facing possible IRS enforcement action or have received notice of a tax lien or pending tax levy, it is very important that you act immediately to take care of the matter to protect your assets.
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Payroll Tax Delinquency
The IRS treats any kind of tax delinquency as serious, and payroll tax delinquency is no exception. In fact, the agency routinely takes serious collection and enforcement actions aimed at businesses, and in some cases the owners of the business. These efforts can result in the seizing of company assets, bank levies, and other equally aggressive measures.
Business owners choosing to ignore IRS collection efforts are clearly making a poor decision. Business owners who choose to be proactive and take advantage of the best professional tax relief advice from specialists who understand current tax code and laws are making a smart decision for both themselves personally, and their business.
Help With Payroll Tax Delinquency
Running a business, keeping it healthy, and turning a profit, is a 24-7 effort. Taxes are a fact of life for any business and payroll tax obligation is one of them. And it's not just the IRS; state and local agencies also demand a piece of their payroll-pie. Like any tax obligation, payroll tax requires vigilance and diligence.
From a Federal or IRS standpoint, payroll taxes are larger in scope, encompassing more. The Federal withholding tax on each employee's wages includes a portion allocated for the following:
- Medicare Taxes
- Social Security Taxes
- Unemployment Taxes
- Federal Income Taxes
Employers are mandated by the IRS to deposit their employees (and their own portion) of payroll taxes with the appropriate revenue agency.
It cannot be emphasized enough: Becoming delinquent on payroll taxes is taken very seriously by the IRS and they do and will take strong, aggressive measures to correct these delinquencies. If your company or business has fallen behind or is about to, you may want to speak today to a tax relief specialist who could not only help you breathe easier but possibly prevent serious IRS enforcement actions such as tax liens or bank account levy.
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Things to Consider...
As if paying the taxes on time weren't enough, there's also very specific methods and IRS procedures that must be followed to the letter. The IRS can penalize employers who neglect to use the stipulated depositing method. You must use the "Electronic Federal Tax Payment System" (EFTPS) or make deposits at a financial institution authorized to accept federal taxes. Fail to do so and the IRS can charge an additional percentage (typically 10%) of the taxes due!
Make the mistake of not making your payroll taxes on time and the IRS penalty, your business could be charged an additional 5% of taxes due, and can go even higher depending on how beyond the due-date, the tax is paid. If a third party has been charged with making payments for your company and they make a mistake, your business or you as the employer, is liable, not the third party company.
And there's more...
Do the IRS rules and regulations stop there? They don't. Employers, for example, must give their employees an annual report or "proof of wages" paid, and all federal, state and local taxes withheld. It's called a W-2. Default or neglect to file the W-2 or file late, and the you as the employer face fines up to $50.
There is no question that businesses have a serious list of taxpayer responsibilities to know and follow. It comes with the privilege of operating as a business entity. If you do take a misstep, or run into financial difficulties, don't go far without getting help. Particularly if you have received an IRS letter or notice informing you of tax deficiency or tax delinquency, take it seriously. As much as you may think otherwise, the IRS doesn't want to place a tax lien or bank account levy on your business -- or seize assets. But, if you ignore notices and warnings this is exactly what is likely to happen.