Failure to file payroll tax forms or deposit payroll taxes in a timely manner can result in serious fines, penalties, and in severe cases, criminal action. Because the IRS has the full support of the federal government when it comes to payroll taxes, they have more authority and can take more extreme actions against businesses who do not comply. Even if you forget to file just once or miss one deposit, the owners of the company can be held personally responsible for unpaid or unfiled payroll taxes. If this sounds familiar, you need the assistance of a seasoned Chicago tax relief specialist.
When you own a business and pay employees, even if the employee is yourself or your spouse, you are often required to deduct payroll taxes from the employees’ paychecks. There are both federal and state taxes taken out of these wages.
The required federal payroll tax deductions include:
It is imperative to file your payroll tax forms with the Internal Revenue Service on time. Missing just one filing can spur a slew of correspondence and threats from the IRS. This also happens when you miss even one deposit of payroll taxes. Whether you forgot or did not have the money, it does not matter to the IRS. They can and will assess penalties, fines, and come after your business and personal assets.
Do not wait until you begin to get threatening letters from the IRS. At the first sign of payroll tax issues, consult with our Chicago tax resolution professionals to negotiate an arrangement with the IRS that may lessen your penalties and stop collection action.