Decisive Action to Address Payroll Tax Problems

If you run a business or are tasked with ensuring that your company's payroll tax obligations are up to date, you likely know that the IRS expects these liabilities to be deposited in trust for quarterly payments. Unfortunately, in a fluid economy, many small businesses fall behind in depositing or paying these liabilities. It does not take long for missed payments to add up to an overwhelming debt.

Many corporate officers, small-business owners and those handling payroll are surprised to learn that —even with a corporate shield — the Internal Revenue Service can hold you personally liable for delinquent payroll taxes. Moreover, the IRS can shut down a business and still seek personal liability for past-due payroll problems. It is crucial to address payroll tax problems promptly to protect your assets.

At the Law Offices of Angelique M. Neal in Brighton, we have extensive experience helping businesses in Michigan and throughout the Midwest resolve their payroll tax problems. Attorney Angelique M. Neal has more than 15 years of experience with a sole focus on tax law. To discuss your tax concerns, call 888-351-8395 from anywhere in the United States.

The Top Five Payroll Tax Problems to Avoid

We have compiled a list of common problems that can quickly lead to severe penalties that can threaten the viability of a venture. If you recognize any of these issues or you are concerned about your potential liability for a payroll violation, we are here to help.

Common sources of payroll tax problems include:

  • Paying suppliers or creditors before the IRS: In a slumping economy, it can be tempting to stop paying taxes to divert cash to suppliers, rent and other operating expenses. However, the IRS views redirecting withholdings as a serious violation.
  • Failing to make timely payroll tax deposits: The IRS has the power to close down a business for failing to pay payroll taxes. Corporate officers — and essentially anyone with check-writing authorization on behalf of the entity — can face personal liability for past-due payroll taxes. Penalties and interest can overwhelm the business if not addressed promptly.
  • Misclassifying workers: Misclassifying a worker as an independent contractor is among the most common issues companies face in the area of payroll tax problems. Often, employers rely on contractual language to assert that a worker is independent. However, the contract does not bind the IRS. The agency will look at the relationship, including the amount of control the entity has over the worker, to evaluate how the worker should be classified.
  • Failing to properly monitor outside payroll company activity: Using an outside payroll company can be a prudent business decision to help ensure that the process is handled properly. Unfortunately, payroll companies can make their own mistakes — including simple data entry errors — that can lead to liability. The IRS can hold your company accountable for outside payroll company errors.
  • Delaying taking action to address delinquent payroll taxes: The penalties and interest that can attach to a payroll problem can significantly compound the financial strain on your business. At the first sign of trouble, it is important to the future stability of your company to promptly address your payroll tax matters. It is often difficult to get caught up on payroll tax obligations. We are committed to helping businesses resolve their tax matters efficiently.

Let Us Help You Obtain the Tax Resolution Strategy That Best Meets Your Needs

If you recognize any of these issues or are concerned about your potential liability for a payroll violation, we are here to help. If you have already received notice from the IRS that a trust fund recovery penalty has been proposed against you, it is imperative to seek the assistance of an experienced tax lawyer as soon as possible.

For sound legal judgment, unrelenting advocacy and unsurpassed personal service to safeguard your rights in a payroll tax dispute with the IRS or Michigan Department of Treasury, contact us online or call our office in Brighton at 810-355-4851 or 888-351-8395 toll free.