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 a negligence of the company’s accountant, a mistake in understanding the tax codes, a misunderstanding of if an employee is a W-4 or a 10-99 classed employee, or it may be for other undefined reasons. Regardless of how it occurred, payroll tax debts can add up quickly.
If a payroll tax debt is not paid, the IRS can issue a bank levy on your company’s account, seize your business’s assets, prosecute you legally, and you may be forced to close your business. Even if your company ends up closing due to the tax debt, the IRS can go after you personally.
In addition to accruing a payroll tax debt, the IRS will also typically impose three types of penalties for a business owner: Failure to Pay, Failure to Deposit, and Failure to File (if you have not filed your business tax returns). All of these penalties, plus interest and the base tax liability can add up to a severe tax issue that can be overwhelming.
At Justice Tax, LLC and our subsidiaries, we have helped millions of taxpayers find relief from their tax issues – from wage garnishments to tax liens, from unfiled tax returns to payroll taxes, and more. By giving us a call at 888-545-6007, our licensed tax professionals will provide you a free, no obligation consultation regarding your tax concern and assist you with achieving the peace of mind that comes from financial freedom with your tax situation.