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Payroll Tax Resolution

Strategic Assistance for Businesses Facing Tax Challenges

Employers sometimes fall behind on their payroll taxes, which are taxes assessed by and owed to the federal government. Businesses must pay Social Security, Medicare, and unemployment taxes. The Internal Revenue Services (IRS) enforces compliance with the tax obligation. Often, business leaders and entrepreneurs are unsure about how to recover from the overdue payments. If you are a business owner or financially responsible for a business, the IRS may come after you for the overdue taxes. When a payroll tax resolution is managed incorrectly, the failure to pay payroll taxes can potentially result in seizures, liens, and prison time. It is critical to respond with the help of tax professionals who understand payroll tax resolution. At Enterprise Consultants Group, our Los Angeles payroll tax lawyers are ready to help. We represent clients throughout California and across the U.S.

The Payroll Tax Resolution Process

Employers are required to withhold income taxes, Social Security taxes, and Medicare taxes from an employee’s wages. The part that is withheld and the employer’s contribution to Social Security taxes are often called payroll taxes. The Internal Revenue Code requires an employer to gather and pay any taxes that were withheld from employee wages. These taxes should be deposited in a qualified bank or financial institution so that they can be transferred to the IRS.

There are significant IRS penalties for failing to pay the appropriate payroll taxes. Often, a failure to pay payroll taxes is a result of an employer not keeping adequate documentation or failing to make careful calculations. Sometimes owners use money that should be disbursed as a payroll tax to pay for business expenses, but payroll tax money does not belong to the business. Taxes need to be properly taken into account and paid to the government. If you fail to do so, or if you try to use the money for some other business purpose, you can get into trouble with the IRS. You should promptly consult a payroll tax attorney at our Los Angeles firm if you are in this situation.

It is crucial to recognize that there is a problem with payroll and get started on creating a solution through payroll tax resolution. If you fail to resolve the tax issues, the amount owed will grow in a compounding fashion. Those penalties result in interest accrued and can increase exponentially unless a payment solution is created to solve the problem.

You can be held accountable if you are supposed to collect or withhold income and employment taxes or pay collected excise taxes for a business, and you willfully fail to do so. If you are involved and potentially responsible for a business deemed liable for a failure to pay the IRS, you can be held financially accountable and sanctioned with a Trust Fund Recovery Penalty. The penalty is calculated based on unpaid income taxes that were withheld along with the employee’s part of the withheld FICA taxes.

Procedures

If the IRS determines that you are the person responsible for making payments, it will send a letter specifying that it is assessing a Trust Fund Recovery Penalty against you. You have just 60 days to appeal from the letter’s date. You should retain an experienced Los Angeles payroll tax attorney and respond. If you do not respond, a penalty will be assessed, and payment will be demanded. Once a penalty is imposed, and no appeal has been filed, the IRS is allowed to begin a collection action. It can file a federal tax lien against your personal assets or take other steps to collect the debt. It can even shut down your business so that it can sell off assets to pay the debt.

Solutions

The IRS has an offer in compromise program, which is one solution that can be utilized, although it is more often utilized by individuals. The offer in compromise program requires documentation, and it can take a significant chunk of time to be investigated and accepted by the IRS. A more attractive payroll tax resolution may involve creating an installment agreement through which you pay back the debt that you owe the IRS in full or partially. The IRS Fresh Start Program may allow you to enter into an installment agreement without submitting financial documents, and there is some flexibility regarding the period within which you are supposed to repay what you owe.

Consult a Skillful Payroll Tax Lawyer in Los Angeles

If you are concerned about your payroll tax obligations, or if a problem already has arisen, you should contact Enterprise Consultants Group. We assist clients throughout California and nationwide. Call us at (800) 575-9284 or contact us through our online form.

Client Reviews
★★★★★
For some unknown reason, I neglected to file my income taxes for several years. With that, I ended up getting notices from the IRS. I had no knowledge on how to deal with the IRS, so I contacted Enterprise Consultants Group as recommended by a colleague of mine. The firm’s tax attorneys helped me get a good deal. My funds are back. Thanks, Enterprise Consultants Group. Edward Nigel
★★★★★
Before we started working with Enterprise Consultants Group, our company owed $100,000 in past taxes. But the tax attorneys at the Enterprise Consultants Group dealt with the IRS on our behalf. Because of that, we settled our debt for $10,000. The total cost we paid to our tax attorneys was less than the original due. Thank you Enterprise Consultants Group for alleviating our heavy burden Mary
★★★★★
Enterprise Consultants Group has outstanding attorneys. They kept me informed promptly. They we’re not in a hurry to settle our case just to get their fees. They did what they could to get me the best settlement I deserved. I would recommend them to any person who needs help with his tax problems. Sheila
★★★★★
My business received letters from the IRS indicating that they had opened and audit. In know I needed help but I was reluctant. I Google searched and found Enterprise Consultants Group, then called for a free consultation. I was impressed with professionalism knowledge of the consultant that I spoke to so I hired them for my business. During the audit period they were always available to answer my questions. I feel that they handled things efficiently and I'm very happy with the end result. C. Bell
★★★★★
After my divorce I was left with a heavy tax debt of over $250,000. To make matters worse I was broke and feared that my wages were going to get garnished. I called Enterprise Consultants Group after seeing a TV ad and they quickly got work with resolving my issue. They settled my tax debt for $3500. I quickly borrowed that amount from family and paid it off. Now that I'm tax debt free, my stress level has come down and I'm doing much better with my finances. B. Davis
★★★★★
The Advocates at ECG helped me clean up a huge mess that another tax firm created. They honestly exceeded my expectations. Now ECG continues to file my taxes every year. I am thankful to have found a firm that I can trust with my taxes. J. Flowers