IRS Tax Issues - Small Business and Payroll Tax, Everyone Could Be …

posted by admin on 2009.04.30, under business

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Hit Hard: Times are tough. And it’s hitting small business harder than anyone else. Many corner stores are forced to shut down. Even ones that have been in business for decades. How can your small business take the pressure when the IRS is breathing down your neck, waiting for you to make one small mistake? Don’t let the IRS intimidate you. Arm yourself with the knowledge you need to succeed.

Fast Track to Failure: The biggest and easiest way to mess up with the IRS is neglecting to withhold payroll taxes. There’s no excuse for this. And the IRS will not take it lightly. The penalty for this equals the amount of taxes owed! It’s called the 100% Payroll Penalty or “Trust Fund Recovery.”

Everyone’s in Trouble: When payroll taxes go unpaid, the IRS wants to hold as many people liable as possible. Here are some of the people the IRS will go looking for:

-Business Owners

-Managers

-Bookkeepers

-Accountants

-Anyone with Check-Signing Power

Help is out There: So what can you do if you already messed up? Here are a couple of options:

Try an Appeal: You have 60 days from when you get the notice from the IRS to file an appeal. If you don’t protest within the 60 days, the preliminary notice becomes final and the IRS will send out a formal notice and demand for payment. Remember, appealing will buy you time. I’ve seen people file knowing they owe the debt. This will suspend the collections process for a short period of time.

Know Your Rights: The Taxpayer’s Bill of Rights II has a law that helps small businesses that are just starting out. As of 1996, the IRS can forgive penalties for failing to timely deposit payroll taxes IF you are a first time offender. Also, the IRS can abate penalties for sending the payment to the IRS instead of depositing it with the right bank.

Watch your Back: If you have Check-Signing power with a small business, you need to watch your back. If you sign a check to pay the IRS, the IRS may come after you for taxes if the business fails to pay one year! And if you are a bookkeeper or an Accountant for a small business, make sure you double check everything you do. You don’t want to be held liable if something goes wrong!

Now You Have The Smoking Gun…Use it!

Richard Close was an IRS-Hitman. He worked as a revenue officer for the IRS and his father was the head of the collections branch for 30 years; so it runs in the family. He left that behind and now he’s partnered with Tax Defense Network to help thousands of Americans with their tax problems. He gives the tips and tricks for you to fight the IRS and win! Visit him at: http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com, or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.

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