As a business owner, you’re always looking for ways to keep your business in the black. But borrowing from payroll taxes instead of paying Uncle Sam will only cost you dearly in the long run.
When you’re responsible for compensating employees, you’re generally obligated to collect the correct share of payroll taxes and pass them on to federal tax authorities without delay. Should you fail to file and account for those tax payments, it won’t be long before the IRS comes asking for its money.
Although you are the one tasked with recording and receiving federal income tax withholding, FICA, and Medicare from employee paychecks, that money does not belong to your business and cannot be spent. The IRS has the power to impose harsh penalties on payroll tax scofflaws, going after all liable parties, including owners, directors, employees, and anyone else at fault.
You could find your entire operation shuttered due to missing payroll tax filings or severe payroll tax penalties. Given that this is a business and not an individual taxpayer, the IRS may not only hit you with substantial IRS penalties, but could consider your failure to properly remit payroll taxes to be a federal offense. Eventually, steps will be taken to close your business and sell off company assets.
Don’t find yourself in hot water over payroll tax problems. When your organization is having trouble with filing or struggling with payroll tax debt, turn to Tax Resolution St. Louis to help work out a solution with the IRS. Contact us soon in the St. Louis area to act on behalf of your local business. Thanks to 40+ years in the industry, we know how to make your case for payroll tax relief!