Has your small business taken off? Are you finding that you need to hire more and more employees to keep up? This is an exciting time for you. It’s also an exciting time for the IRS because more money and more employees that need paychecks mean more chances for you to screw up with your taxes.
Let me tell you something…when I was an IRS-Hitman we used to love small and independent businesses. Why you ask? Because if one of these businesses made even the slightest clerical error on their taxes it could balloon into a massive debt and we would get to seize the business.
They’re circling…IRS agents are like vultures, and your business is a dying animal in
the desert. Sooner or later they’re going to get you.
Get out from under the IRS…So what can you do to avoid the IRS taking everything it’s taken you years to build? Pay them the right amount of payroll taxes and pay them on time. Doesn’t that sound simple? Is anything with the IRS ever simple though?
Do you need help? The IRS-Hitman does have a couple of suggestions for dealing with the IRS, and keeping them out of your business.
Check the numbers…Make sure the right amount of taxes is being taken out based on your employee’s W-4 form. Taking out too much or too little can not only screw up your 941 quarterly filing, but it can also screw up your employee’s tax return.
No later than…Make sure you pay the IRS the payroll taxes on time every three months.
No exceptions! Do not put it off until the next quarter because you’re in a financial bind at the moment and need to use that payroll money for your business. Remember that isn’t your money, that’s Uncle Sam’s; and he’s worse than the mob when it comes to collecting on a debt.
Be a success! If you start to get larger and larger numbers of employees and your business is growing you should get an accountant or CPA to handle your books. Once your little business gets bigger there are so many tax forms and different filings that have to be done there’s little chance of you being able to do it. Besides you need your time to focus on running your successful business. Also if you do happen to get in trouble with the IRS you have all the tax records in nice, neat, books to make sure an IRS audit doesn’t turn into a serious disaster.
Now you have the smoking gun…Use it!
Labels: Business Tax, Payroll Taxes