If you own a business and have employees, and you owe Payroll Taxes / Employee Withholding Taxes, it is extremely important that you take care of any outstanding tax debt quickly. If you haven’t already done so, payroll tax debt relief services can help.
Employers are legally required to withhold federal income tax, as well as Social Security and Medicare taxes, from their employees. These withheld taxes are placed into a trust to then be paid to the IRS; therefore, they are referred to as a trust tax. Not paying payroll taxes to the IRS is a very serious offense.
Payroll taxes are some of the taxes that the IRS is most aggressive in trying to recoup, and it is not as easy to negotiate when it comes to resolving payroll tax debt as compared to various forms of personal tax debt.
If you fail to make payment or come to an agreeable tax resolution with the government about repaying outstanding payroll-related taxes, you put your business reputation, as well as your personal income and assets, at risk. Assets and property of the business may be seized to cover the tax debt or you may even be forced to close your business due to your inability to sufficiently pay your payroll taxes. A lien or levy may be placed on your business by the IRS so that even if you sell your business, money made from the sale is used to pay off your payroll tax debt. Additionally, civil and/or criminal charges can be brought against you.
What type of payroll taxes and tax forms does this include?
Employers are required to withhold federal income taxes from employees, as well as Social Security and Medicare taxes. The following payroll tax forms must also be filed:
- Form 940 – Employer’s Annual Federal Unemployment Tax Return
- Form 941 – Employer’s Quarterly Federal Tax Return
- Form 944 – Employer’s Annual Federal Tax Return (instead of Form 940 if annual liability for withheld federal income taxes, Social Security and Medicare is less than $1,000 per year)
Need Payroll Tax Debt Relief? Contact Us Today!
If you own a business and owe payroll-related taxes, call People’s Tax Relief for a free, no-obligation tax consultation at 888-618-0593 or fill out the form on the side of this page and one of our experienced tax specialists will contact you. It is extremely important that you address any outstanding payroll tax debt in order to avoid the possibility that your business may have to close or that you will experience personal repercussions. Our tax resolution specialists can provide you with the payroll tax debt relief you, and your company, may need.