Florida & IRS Employment and Payroll Tax Attorney
Payroll tax violations – such as failing to deposit withholding and social security taxes – are some of the most common tax violations which frequently occur. They are also among the most serious matters investigated and enforced by the IRS. At Ronald Cutler, P.A., our Florida payroll tax attorneys can help you understand and resolve your payroll tax problem, and avoid the serious penalties you may otherwise face.
Facts about Payroll Taxes
Certain taxes are withheld from an employee’s paycheck and must be turned over to the IRS in a timely manner. Depending on the size of the payroll, tax deposits may be required as soon as the day after checks are cut and delivered to employees. Interest and penalties will start to accrue if the deposits are not made on time, and these amounts can quickly grow to exceed the amount of tax due in the first place. Unfortunately, business owners who are struggling to pay their bills and make payroll may put off or neglect making payroll tax payments until the problem has simply become unmanageable. To make matters worse, failure to remit payroll taxes can be charged as a felony, potentially compounding civil penalties with criminal ones as well.
If you are experiencing a payroll tax problem with the IRS, help may be available. The payroll tax liability can be reduced in many cases if you know the applicable IRS rules, regulations and procedures. For instance, you may dispute the IRS’ calculation of the tax, or the failure to remit tax may be the fault of an employee, such that the business owner should not be held personally responsible. At Ronald Cutler, P.A., we help business owners deal with payroll tax matters in a number of ways, such as by negotiating installment agreements, offers in compromise, or short-term deferrals; negotiating a release of federal tax liens and payroll tax levies; filing claims for interest and penalty abatement; or having the tax declared uncollectible in appropriate circumstances.
Help with the Trust Fund Recovery Penalty
Payroll taxes withheld from the employee are said to be held in a constructive trust, with the employer as trustee and the IRS as beneficiary. As a trustee, the business owner or other individual responsible for paying the tax can be held personally responsible and hit with a penalty equal to 100% of the tax due, plus interest. This penalty is commonly known a the Trust Fund Recovery Penalty or the 100% Penalty. Ronald Cutler can help negotiate a reduction or dismissal of this penalty, or litigate the matter in court as necessary.
Worker classification is a frequent source of payroll tax disputes with the IRS. Income tax withholding and unemployment taxes which may be required for employees are not required for independent contractors hired by the business owner. The IRS test for independent contractor status is complex and contains many parts. We can help you to understand the proper classification of your workers under this test and represent you in any dispute with the IRS, including seeking safe harbor or section 530 relief, or settling the dispute under the Classification Settlement Program.
Help is Available for IRS Payroll Tax Matters in Florida and Beyond
For help in the resolution of Florida payroll tax disputes or nationwide, contact Ronald Cutler, P.A. at 386-490-9949.