Overwhelmed? Small Business is suffering. In this economic recession, it's hard to stay afloat. I'm receiving an influx of e-mails from veteran Small Business owners that owe big money to the IRS because they neglected their payroll tax obligations. Even if paying the IRS could hurt you financially, the IRS still expects their money, and they might shut you down to get it.
Common Mistake When Business is slow, people stop paying their payroll taxes. They do this because it takes the IRS longer to get to you than say, the utility company. But once the IRS does spot you, it's a done deal. You have to pay what you owe and keep current if you don't want to get shut down.
Am I Too Late? So you want help with your payroll taxes, but you're already on the IRS Hit List. Don't panic. Show the IRS that you're willing to work with them. Whether you've made a mistake filing or missed a quarterly payment, pay any amounts owed immediately! It's never too late to make up for a mistake; but timing is crucial.
Interest and penalties start accruing on the debt as soon as it becomes a debt, causing it to double or even triple. Do whatever it takes to make paying your taxes a priority when you're running a business. No one can bring you down faster than the IRS.
Labels: Business Tax, Payroll Taxes