Every employer is required to timely report and pay payroll taxes, for which they must accurately record the total income of their employees and the amounts withheld. Although understanding all the steps involved in preparing and filing payroll tax returns is important in avoiding mistakes, it is equally important to resolve common questions related to payroll tax problems. Having said that, in this blog, we answer some frequently answered questions about payroll tax problems. Take a look.
What are possible payroll tax problems?
Employers, by law, are required to withhold three separate types of taxes from their employees. In case an employer is unable to follow the procedure properly, they can face a number of payroll tax problems. Payroll tax problems occur usually when you didn’t file tax returns or didn’t have the required finances to pay the tax.
What are the rules to settle IRS payroll tax problems?
The IRS has very strict rules for business who do not pay their payroll taxes on time. It is, therefore, extremely difficult for employers to settle payroll tax problems, however, it is not impossible. The IRS states special rules that apply when an employer wishes to settle payroll tax problems. A few of the special rules are:
- Employers must be up-to-date for at least 2 quarters with their Form 941 payroll tax payments before they file for a settlement offer.
- Employers must have filed Form 941 for the most recent tax year.
- Employers must have filed Form 1040 for the most recent tax year.
What steps are needed to deal with the IRS?
When facing IRS payroll tax payment problems, it is important to know the steps that are needed to deal with the IRS. You must:
- Collate up-to-date and accurate financial information, including income and expenses statements.
- Fill an IRS Form 433-A and 433-B on the business. The Form 433-A determines an employers expenses, income, and assets, whereas, the Form 433-B solely determines the types of assets a business may have.
- Create a detailed budget form, including personal expenses
- Check whether you filed the most recent Form 940, Form 941, and Form 1120 – if needed.
- Check whether you filed the current tax year Form 1040
Should I seek professional help?
Ideally, yes. A tax professional with expertise in overcoming payroll tax problems will know the easiest and ideal way out to bail you out of your payroll tax problems. It is, therefore, advisable to contact a trusted tax attorney for expert guidance.
When asking yourself how to pay payroll taxes to the IRS, read this blog to find answers to common questions related to the procedure. Although filing payroll taxes may seem simple on the surface, it can involve a lot of intricacies that call for professional expertise. Speak with one of our IRS tax attorneys at the Law Office of Nick Nemeth to get professional help with all sorts of IRS payroll tax problems. To discuss your IRS tax problems, simply call (972) 426-2553 or fill out our contact form and we will take it from there.