Payroll, Sales and Use Tax Problems
PAYROLL TAXES The IRS views failing to pay payroll taxes as the cardinal sin of tax delinquency because a large portion of the payroll taxes are your employees' withholdings. Most problems with payroll taxes in the past have been eliminated with the increased presence of payroll service companies. Part of their service is to process your payroll tax payments. However, if you still process your payroll in-house you have the responsibility to pay your payroll taxes, and file your payroll tax returns, in a timely manner. Failure to do so can result in penalties that are much more severe than other types of penalties and can drastically multiply the amount you owe in a very short time. SALES AND USE TAXES The economic downturn of the last few years has forced many states to aggressively increase their collection activity with respect to sales and use taxes. As with payroll taxes, failure to comply with their interpretation of the sales and use tax regulations can lead to rapid multiplication of the amount owed, due to interest and penalties. If you are behind on your payroll taxes, sales or use taxes, DO NOT meet with the taxing agency on your own. How you answer their initial questions can literally determine whether you stay in business or not. Our experts can walk you through the maze of payroll, sales and use tax issues. We can represent you in an audit of those taxes or assist you in corresponding with the agency in question. |

