As a small business owner in Oklahoma City, you likely spent many years working to build your company. You take great pride in the business that you have created and the value it brings to the local community. However, making payroll-tax errors or failing to recognize the importance of payroll taxes is one sure-fire way to dampen the success of your business. Avoiding payroll tax penalties is key to your company’s longevity.
What You Can Do to Avoid Payroll Tax Trouble
In order to avoid falling into the trap of getting in trouble with the Internal Revenue Service (IRS) for unpaid payroll taxes, consider the following tips:
- Pay close attention to the taxes that you owe as a small business owner. The IRS has targeted small businesses as being the largest source uncollected taxes and may pay extra attention to this group of taxpayers.
- Pay your payroll taxes on time. Failing to do so is a federal crime.
- If you discover a missed payment, catch up as soon as possible. Penalties can add up quickly, threatening the financial health of your business.
- Cooperate with the IRS if you missed a payroll tax obligation. The IRS collection Revenue Officer may use aggressive tactics to collect the past-due tax obligations. These tactics could put your business at risk. For example, the IRS can seize your equipment, padlock your front doors, and contact your customers.
- Never, under any circumstances, borrow against the payroll taxes that you collect. This money does not belong to the company and should not be used for the business’s operating expenses.
- Seek guidance from an attorney if your business is audited. Representing yourself when dealing with the IRS can be a costly mistake. In addition, the IRS can go after you personally—not just in a professional capacity—if your business fails to pay payroll taxes. The IRS has the authority to seek payment from owners and shareholders of the business.
Business owners have a great deal on their plate and may need assistance dealing with tax problems. Fortunately, we are here to help. Contact us today to schedule your free consultation.