Staying compliant on payroll taxes is incredibly important to the health of a business.
Newport Beach, VA (PRWEB) February 28, 2013
CTR’s Newport Beach tax attorney is warning California business owners of the potential risks of owing federal tax debt and the steps required to stay compliant. Businesses from small to large have a responsibility to pay their IRS Payroll Taxes. Failure to do so can result in tax debt and cause a business to face IRS penalties.
“Staying compliant on payroll taxes is incredibly important to the health of a business,” a CTR spokesperson said. “If businesses don’t pay their taxes, it can make life difficult for anyone from the owners to the employees, not to mention their clientele.”
CTR’s Agoura Hills tax attorney wants to ensure that all business executives in California are aware that they are required by the IRS to withhold Federal Income Tax, Social Security and Medicare taxes from their employees’ wages. Typically these taxes must be paid to the IRS on a quarterly basis, though it is possible for some small business owners to pay their taxes annually.
CTR recommends handling any tax debt as quickly as possible. The IRS is very aggressive in collecting business tax debt. At first, penalties assigned by the IRS can compound and increase the amount of debt owed. Business debt collection efforts can cause problems for the business itself, turning profits into IRS payments. This effect on the bottom line can impact several aspects of the business.
CTR has assisted businesses seeking Alaskan tax debt help with repayment options to stop debt increase and additional fines. For those who have not reached out to tax professionals for help, the liability for the tax debt can be placed on the individuals that the IRS deems responsible for the company’s tax payments.
“The best way to avoid tax debt, whether for a business or personally, is to pay your taxes in full,” a CTR spokesperson stated. “Filing and paying on time and in full is the easiest debt prevention tactic. If that’s not possible, setting up a repayment option will greatly help in deterring debt growth and IRS collection efforts.”
CTR’s Alhambra tax attorney has compiled other tips for business owners looking to avoid IRS tax debt. Maintaining all pertinent tax paperwork and ensuring that the proper amount of money is withheld will prevent problems with the initial tax payments. If payments are going to be delinquent, it is best to let the IRS know by filing for an extension by the deadline. As soon as debt has accrued, the individual in charge of taxes for the company should contact a tax expert in order to receive help in determining the best tax repayment option.
CTR advises business owners that once a repayment agreement has been instituted, making the required payments on time will deter further collection efforts. If payments are missed, the IRS can begin placing liens and levies against the company that can result in seizure of assets from the property to the inventory.
CTR offers tax debt resolution and tax services for individuals and businesses across the United States. The company uses a three step program to create personalized strategies to help taxpayers settle their IRS debt. The company offers many services, including: state and federal tax debt resolution, IRS audit defense, tax preparation and bookkeeping.