Unpaid payroll taxes are a serious matter to the IRS and are some of the worst kind of back taxes you can owe. If you’re a small business owner with a payroll tax problem, read on to learn what you can do to avoid the IRS crippling your business or worse, shutting your business down completely.
Already in payroll tax trouble? Contact us to schedule a free, no-obligation consultation and let’s get your payroll tax issue resolved. https://IRSHostage.com UPDATE: If you owe payroll taxes in the current period see our blog post for additional information and links to helpful resources if you or your business have been impacted by the Coronavirus.
Why Do Small Business Owners Get Into Payroll Tax Trouble In The First Place?
It’s hard being a small business owner today! Paying bills that seem to come from all directions, advertising, inventory, rent, website, SEO, the list goes on and on and then if you have employees you need to pay your employees their paychecks timely for the work they’ve done… and then on top of everything else the IRS payments must be made for all those payroll taxes!
Many times when money is short, business owners make the decision to pay the employees first. It’s the natural, human thing to do—you know you have to take care of your employees, even if you must skip paying yourself! Besides even if you were a scrouge and didn’t pay them, they’d quit! Then you’d be out of business in no time!
It can seem easy to push it off and plan to “pay it next pay period” and give yourself a little cash flow cushion but skipping paying your employees payroll tax deposits is never a good idea.
What happens too often is one pay period turns into two, and three, and four, and before you know it you’re so deep in payroll tax debt that you have no idea how to fix it. So you do the only thing you feel that you can…. you ignore your problem.
Except the IRS doesn’t care about your financial problems and they won’t let you ignore them for long. They want you to pay your taxes and business owners not paying payroll taxes they really go after!
The IRS doesn’t care if you can’t pay your employees either. They don’t care if you are trying to be a good person by making sure your employees have the money that is due to them. The money they need to pay their bills. They don’t care if you can’t collect your receivables. They don’t care if one of your largest and best customers just went “belly-up”. They believe you have money that belongs to them and that is all they care about and they will do whatever they have to, even put you out of business, to collect it. They don’t care who you are, what kind of person you are, or even what business you are in.
Penalties are The Kiss Of Death When It Comes To Back Payroll Taxes
Penalties for failing to file and pay your payroll taxes are the “kiss of death” for any small business owner. They tack on penalties totaling 33% in just the first 16 days! And it doesn’t stop there. The IRS adds interest on top of the penalties too. It is not uncommon that a payroll tax liability doubles in short order. And if you don’t pay them or work something out, they will shut you down! It’s much less work for the Revenue Officer, as most aren’t paid terribly well and they don’t want to add extra work for themselves. So they simply close you down rather than try to work out an arrangement with you.
The IRS Will Collect Or They Will Shut You Down
It’s as simple as that. The IRS is the most powerful and the most brutal collection agency on the planet. In some ways, they have more authority than the President of the United States! They have the power to do pretty much whatever it takes to collect what’s owed to them. You didn’t wake up in the morning, go to work, and say to yourself, I’m not paying my payroll taxes because I don’t feel like it. The money simply wasn’t there. It’s not your fault. One week you’re short of cash. It was a slow week, a customer’s check bounced, or any number of legitimate reasons that just prevent you from paying the IRS. You’re a good person. You figure you will make it up the next week. But then next week comes and goes, and you realize you still don’t have enough money to make that payroll tax deposit. Then the entire situation builds and builds until it starts taking over your life and even affecting your sleep.
Should You Call The IRS To Get Your Payroll Issue Fixed?
If you were to call the IRS and assuming you were able to get through after waiting on “hold” for an hour to then try to explain your situation—you might as well have a conversation with the wall—because they just really don’t care. The IRS representative that you’re talking to probably makes less than $20 an hour and is poorly trained. Do you think they ever had to make a payroll in their life? Do you think they know what it’s like running a small business? They listen to people explain stories they can’t or don’t want to understand all day every day. Do you really think they will have any sympathy for you?
Not only is the answer “NO” they can also impact the fate of your case. What they will try to get, while you’re on the phone, is all your personal and financial information. They want to know where your banks are; your customers who owe you money, the value of all your assets, like your home, cars, motorcycles, etc. Why? Because now they have all the information, they need to levy your bank accounts, take your receivables and seize your property.
Now that you know you shouldn’t be talking to the IRS because they are not really trying to, help you, you might be wondering what you should do? Where should you turn for help? The smartest thing you can do to protect your business and family is to have someone represent you—someone who deals with the IRS for a living. You need to get help—but not from just anyone—you need help from an experienced, competent professional, who deals with the IRS every day!
Reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem https://IRSHostage.com. We know how to navigate the IRS maze! It’s what we do!
Once you decide to retain us, we step into your shoes and protect you from the IRS’s abusive tactics. We take over all communications from the IRS on your behalf. You don’t have to speak with the IRS anymore! We do. In fact, they are not allowed to talk to you once we are assigned as your Power of Attorney! Once they realize you have someone on your side protecting you, who knows their tricks as well as they do, they must step back and follow the law. Not only can we protect you from the IRS harassing you, calling you, playing mind games, and showing up at your front door, we can get those penalties reduced and, in some cases, completely removed!