1. Payroll taxes are essential to businesses with employees. No matter how you look at it, there is no exception for unpaid payroll taxes. If you are a business owner or employer, it is your absolute responsibility to be up to date and aware of any and all payroll tax deposits that need to be made on behalf of your employees.
2. When it comes to payroll taxes, the IRS is especially aggressive in their collections of payroll taxes and will ensure that they receive their deposits. If you are not in compliance, you can expect the IRS to send agents to your business to collect and even seize assets if necessary.
3. In and of themselves, the penalties for such violations can add up quickly. The late fines are immediate and may end up costing you thousands of dollars in fees that could have been avoided if you had been compliant. If you notice that you missed a payroll tax deposit then you want to make sure and pay it as soon as possible. If you fail to deposit the money with the government, the IRS may issue a lien against your bank accounts.
4. Small businesses are watched especially close. Just because you are a small business, do not think you are not large enough to be watched. The IRS has their eye on all small business owners, and works to enforce full payroll compliance on all businesses both large and small.
5. Robbing Peter to pay Paul. If you even think of borrowing from payroll taxes, remember this. It is highly illegal.
Under no circumstance are you allowed to borrow from payroll taxes instead of depositing them. Doing so often results in huge legal headaches, and huge IRS penalties.
6. Avoid litigation and huge penalties by simply paying your payroll taxes. There is no way to resolve payroll tax disputes without spending unnecessary money. Lawyer fees, time off work, and any resulting fines will negatively affect you and your business. Furthermore, do not forget the IRS has the right to lock your front doors without a court order, instantly putting you out of business indefinitely.
Thank you for your interest in Advanced Micro Solutions. If we can be of any further assistance, please visit our website at 1099-etc.com.