Orlando IRS Employment & Payroll Tax Attorney
As a business owner, you are at risk for committing many IRS tax violations. Some of the most common involve payroll taxes, like forgetting to deposit social security and withholding taxes. They are some of the most common violations, but they are also some of the most severe offenses. If you commit a payroll tax violation, you can almost guarantee the IRS will launch a serious investigation and enforcement action. If you suspect you made a mistake and committed a payroll tax violation in Florida, it’s imperative to contact an experienced Orlando IRS employment & payroll tax attorney.
At the law office of Ronald Cutler, P.A., our Florida payroll tax lawyers are here to assist. We can help you understand what you did and how to resolve it. That can help you avoid the hefty penalties you could be facing down the line.
What to Know About Payroll Taxes in Florida
As an employer, you are expected to withhold certain taxes from your employees’ paychecks and then turn over to the IRS in a timely fashion. Depending on how large your payroll is, the IRS might require your tax deposits as soon as one day after you cut and issue payments to your employees. Failure to submit these funds to the IRS can result in penalties and interest. As the interest and penalties accrue, you could wind up owing more than the original tax amount.
Business owners who are experiencing tough times and struggling to pay bills might be tempted to put off their tax payments to stay afloat. Giving in to that temptation ends up creating more problems. Many businesses never get right side up again. Also, failure to submit your owed payroll taxes can be a felony offense. Therefore, you could be looking at criminal charges and civil penalties.
Avoid the Trust Fund Recovery Penalty
When you withhold payroll taxes, you are supposed to put them in a constructive trust that lists the employer as the trustee and the IRS as the beneficiary. As a trustee, you are legally liable and can be held personally responsible for failure to remit taxes. The penalty could be equal to 100% of the taxes owed, plus interest. This Trust Fund Recovery Penalty can be challenged, but you need a skilled Orlando payroll tax attorney on your side.
Classifying your workers incorrectly can also lead to disputes with the IRS over withholding and unemployment taxes. Employee withholding is required, whereas independent contractors are not. Some employers wrongfully classify workers as independent contractors to get out of paying taxes. If the IRS finds that you have incorrectly classified a worker, you could be facing legal action from the IRS. Our legal team can help you fight this and assist you in making sure all other workers are correctly classified.
Contact a Florida IRS Employment and Payroll Taxes Attorney
If you are an Orlando business owner facing problems with the IRS over payroll tax violations, contact the law office of Ronald Cutler, P.A. as soon as possible. Schedule an initial consultation and learn how we can help you resolve your outstanding legal issues with the IRS.