Business Tax Problems
Is the IRS coming after your business?
Just as individuals have extensive tax needs, businesses have many tax laws that can complicate day-to-day matters, disrupting your operations and revenue. The IRS may use enforced collection actions against business owners to recover a debt. This almost always devastates their finances, household, their livelihood, and employees’ livelihood. Some complex business tax issues include payroll taxes, bank levies on business accounts, back tax debt, Failure to Deposit penalties, unfiled business tax returns, and more.
Check out our resource center below to learn more about the solutions to the specific problems you might be experiencing and how we can help.
- Navigating State Unemployment Audits
If there is a discrepancy in wage reporting on your federal vs. state unemployment taxes, a misclassification of employees, or if you have unemployment accounts in multiple states, you may be in danger of receiving a state unemployment audit. In addition, the U.S. Department of Labor requires state agencies to randomly audit a percentage of… Read more: Navigating State Unemployment Audits - Navigating Sales Tax Issues and Audits
Most states have a sales tax on products and it’s typically collected by the state’s Department of Revenue. Usually, this type of tax debt is triggered by a sales tax audit. The state will often request accounting statements, state and federal returns, invoices, purchase orders, and any other financial statements from the business. Because sales… Read more: Navigating Sales Tax Issues and Audits - Navigating Employee / Employer Relationship Audits
As an attempt to close the Tax Gap, the IRS can audit a business by worker classification (employee vs. independent contractor), fringe benefits (non-monetary pay for employees), executive compensation (both monetary and non-monetary pay for executives), and reimbursed expenses (i.e.; travel expenses). The best way to avoid this is to pay close attention to the IRS… Read more: Navigating Employee / Employer Relationship Audits - Staying Compliant with Excise Tax
Excise Tax is a tax paid when a purchase is made on a specific good, service, or activity. Typically, the IRS applies an excise tax to anything that may be harmful to a person or the environment. This can include tobacco, alcohol, health products or services, highway and fuel usage, and aviation usage and services.… Read more: Staying Compliant with Excise Tax - The Dangers of Business Bank Levies
If you have a business tax debt, the IRS can place a levy on your bank accounts that include your vital accounts used for payroll. When this occurs, the IRS has the right to remove all funds in these accounts to collect on the outstanding tax debt, making it problematic to pay crucial expenses and near-impossible to retain your employees that… Read more: The Dangers of Business Bank Levies - Payroll Tax Issues
A payroll tax debt occurs when a business owner fails to withhold the appropriate amount of taxes from their employee’s paychecks and send the funds to the IRS. Sometimes this happens due to negligence of the company’s accountant, a mistake in understanding the tax codes, a misunderstanding of if an employee is a W-4 or… Read more: Payroll Tax Issues - Unable to pay your Employment (Payroll) Taxes
As an employer, you’re responsible for paying payroll taxes on your employees. Typically, these taxes are due quarterly, which can make it easy to miss a payment. Some origins for payroll tax debt can be if an employer borrows from a payroll account to cover other expenses, or they may forget to withhold or deposit… Read more: Unable to pay your Employment (Payroll) Taxes - Federal Tax Lien – Shutting off your line of credit or factoring agreement
If the IRS files for a federal tax lien to be placed on your business, it can hurt your chances of securing a business loan, along with affecting any agreements or contracts you may currently have with lenders. Every lender wants assurance that they will get their money back, and your current lenders will be placed at… Read more: Federal Tax Lien – Shutting off your line of credit or factoring agreement
