Common Payroll Tax Problems and Their Solutions

IRS Payroll Tax Problems with The Law Offices of Nick Nemeth

Every business, no matter how big or small, is required to withhold a certain part of its employees’ wages  to pay applicable federal, state and local taxes on their behalf. If a business fails to pay payroll taxes in time, the IRS has the right to impose interest and penalties and the federal body has been quite aggressive in its recent payroll tax collection practices, with even the slightest anomalies in payroll tax payments coming under its lens. If you are facing any payroll tax problems, speak with the tax attorneys at the Law Offices of Nick Nemeth. Continuing on the subject, let’s now look at some of the most common payroll tax problems, and what you can do about them. Read on.

No Money to Pay

When businesses find themselves too cash strapped to pay payroll taxes, they assume that by the time the IRS comes knocking on their door, they would have enough money to pay off their dues. Unfortunately, that is not always the case. The only thing that’s constant is that, the problem gets worse, with interest and penalties mounting rapidly. At times, things can get so bad that the IRS threatens to shut down the business, or business owners face felony charges punishable by fine or imprisonment, or both.

Intentional Non-Payment

Another possible payroll tax problem is when, either due to dishonesty or incompetency, employers fail to pay the tax debts. Business owners and stakeholders need to remember that no business can avoid paying payroll taxes.  Should you qualify and if your business has outstanding payroll taxes, our tax attorneys can help you out by negotiating an amicable settlement with the IRS to reduce the penalties and interest, if any. We can also help prevent the IRS from holding a business owner personally responsible for payroll tax problems.


Possible Remedies

Even though every case is unique, businesses need the services of a professional IRS tax attorney who can guide them on the best possible solution. In all cases, businesses have the right to consult a tax lawyer to get tax relief. Our attorneys hold extensive experience in IRS tax resolutions and can help you resolve all sorts of payroll tax problems in the following ways:

  • Reviewing the tax accounts of a business to determine whether the IRS calculated the payroll taxes correctly.
  • Negotiating an installment agreement to pay off payroll tax debts in staggered manner over years.
  • Submitting an Offer-in-Compromise to reduce payroll debt.
  • Requesting a short-term deferral of payroll tax until a business has the time to get back on its feet.
  • Obtaining release of federal tax liens so that a business can take recourse to loan to pay off the debts.
  • Filing claims for abatement of interests and penalties.

Note: Filing for a bankruptcy does not solve all problems with federal payroll tax debts. Instead, it will be more sensible and helpful for businesses to explore all possible options to address payroll tax issues on time.

Need Help with Payroll Tax Problems? Contact Us, Today!

The tax attorneys at the Law Offices of Nick Nemeth have the experience with a proven track record on handling all sorts of IRS tax debt related problems, with payroll tax problems being no exception. We use strategies to help clients and leave no stone unturned to prevent IRS tax problems from turning into huge liabilities. To schedule a no-obligation consultation with one of our IRS tax attorneys, simply call (972) 627-4580. You can also submit our contact form and we will will contact you shortly.