941 Payroll Tax
Employers are required to pay taxes for their employees, including federal income taxes, Social Security and Medicare taxes, and federal unemployment taxes. Even individuals who employ just one or two people may be required to pay 941 tax. Failure to pay the 941 tax in a timely manner can result in penalties, garnishments and levies. Even small businesses are subject to these requirements. To remain current with these taxes, the federal government requires most businesses to make quarterly filings and payments. This is known as the 941 payroll tax.
Falling behind with quarterly 941 payroll taxes is a common problem when businesses begin to struggle with money. Sometimes flourishing businesses simply forget to make their 941 payroll tax payments. Fortunately, CRA Tax Rescue offers several options for solving 941 payroll tax deficiencies.
The IRS will assess up to 25-percent penalties on late payroll tax payments. Failure to pay payroll tax can also lead to seizure of business assets or a levy on your bank accounts. If your business has not filed the necessary 941 payroll tax forms and submitted payments because you could not afford it, you may qualify for a reduction in the amount you owe. CRA Tax Rescue’s professionals have successfully negotiated payroll tax installment agreements with your best interests in mind, and settlements that can clear your 941 payroll tax debt for a one-time lump sum.
Payroll tax problems can become personal tax problems. Failure to file timely payroll tax returns can result in a “Trust Fund Recovery Penalty.” In this case, the IRS can require you to pay for the business’s payroll tax problems. You could be found responsible, even if you are not an owner of the business. Our CRA Tax Rescue professionals understand the how the IRS determines who is responsible for payroll tax problems.
Even if you already have an installment plan with the IRS, we may be able to get you a better deal. CRA Tax Rescue professionals have extensive experience negotiating with the IRS, so we may be able to reduce your current installment payments. Keep in mind that paying less than your installment payment amount or failing to make them at all can result in severe penalties. You can avoid these costly penalties for unpaid or late 941 payroll taxes by allowing CRA Tax Rescue to deal directly with the IRS on your behalf.