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What Happens When You Can't Pay Payroll Taxes

What Happens When You Can't Pay Payroll Taxes

Payroll taxes not being paid is one of the key reasons why many businesses go out of business. Luckily, there is now help for companies that are unable to pay their payroll taxes. There are many options to save your company before it is too late. These options may not be easy but they will definitely ensure that your company stays up and running.

The first thing you should do is contact an attorney. At there are attorneys that will take the time to understand your particular situation and advise you on the best options. Rest assured that there are options to work through your situation, but you need to call on tax experts who specialize in knowing all the options to find the solution that will work for you.

If an attorney is not contacted and you continue to not be able to pay your payroll taxes there are many things that will happen. The first thing that will happen is you will be assigned an IRS revenue officer that will visit the business and stay to see how the business is handled. This officer will be looking for signs of neglect and other factors that lead to businesses not paying payroll taxes.

Small businesses may get even more scrutiny. The IRS likes to focus on small businesses because they are commonly the kind of business that usually has trouble paying taxes, or gets caught in fraudulent activities.

There are payroll tax penalties that begin to add up over time. You definitely want to avoid these because they are costly and do not to stop until the debt is paid. There are three different types of penalties and each one comes at a hefty price.

The harshest form of punishment for not being able to pay your payroll taxes can actually be federal crime. Not being able to pay your taxes in the worst cases can lead to jail time and also huge fines. It is not common to have to go to jail for not paying taxes but it is definitely possible and should be avoided in any way.

There are many consequences to not being able to pay payroll taxes and none of them are good. This is why it is important to get in contact with a lawyer as soon as you find yourself in trouble. A lawyer will be able to analyze the situation and come up with a game plan for you to be able to mitigate the consequences before you are overwhelmed with mounting fees and fines. The best advice to anybody facing these problems is to contact an attorney quickly.