Payroll Tax Attorney – Summerville, SC
Do you owe back payroll taxes to the IRS or State of South Carolina? Don’t ignore your situation! We can help resolve the problem with you.
If you owe payroll taxes to the IRS or South Carolina, you need to know that you have a serious problem on your hands. This is not something you want to ignore or put off until later! In some cases business owners can lose their businesses, their personal property, and even face jail time.
Now, you should also know that there is a solution to the problem. Some of the options available to remedy this situation are the same as the options available to an individual who owes back taxes. We will discuss the options below.
What are payroll taxes?
Payroll taxes include Social Security and Medicare contributions, and together are referred to as “payroll or trust fund taxes.” Payroll taxes are collected from employers by the federal government (IRS) and most state governments. It’s a tax that the employer withholds on behalf of the employee from their regular payroll checks.
Who has to pay them?
Payroll taxes are paid by employers on behalf of their employees. They take a statutory amount from the employee’s checks each month, and then are supposed to match that amount themselves. The total sum is then submitted to the tax authority.
Since self-employed individuals do not have an employer to withhold payroll taxes for them, they must pay their own. This tax is referred to as the “self-employment tax.” They work very similarly to payroll taxes.
What can the IRS do to collect back payroll taxes?
The means by which the IRS can collect on your payroll tax debt is what makes this situation so serious. Here are some of the things the IRS has the authority to do:
- The IRS can lock your doors and shut down your business.
- They can sell off all of your business assets.
- They can contact your customers! If those customers owe you money, the IRS can intercept it.
- If your business accepts credit cards, they can intercept all payments and have the processing company send the money to them.
- If you are affiliated with the business as an owner, manager or employee, they can go after your personal property and bank accounts.
Personal Liability for Employers, Managers and Employees
As a general rule the employer, manager or employee is not personally liable for debts owed by a business. But in some limited situations, the IRS can actually go after the employers, managers and employees to pay the “payroll” debt owed by the business.
For this to happen, it must be proven that the person willfully failed to collect and pay payroll taxes. In this case, willfully means knowingly. The individual must also have been the “responsible party” in charge of collecting payroll taxes and remitting them to the proper tax authority. Unfortunately, a “responsible party” can be anyone in a position of authority in the business.
What options do I have if I owe back payroll taxes?
Yes, the IRS can do many scary and intimidating things to your business if you owe back payroll taxes. But with the help of an experienced payroll tax attorney, there is light at the end of this dark and gloomy tunnel!
There are a few options available to resolve your tax debt. Please note that these are NOT a guarantee. You will not necessarily be granted one of them if you simply ask for it. There is an application and negotiation process involved here that a skilled tax debt attorney is qualified to handle.
Here are the options:
- Installment Agreements – These agreements are basically payment plans to pay back your debt.
- Offers in Compromise – This is a negotiated amount, lower than what you actually owe, that, when paid, resolves your debt.
- Currently Non-Collectible Status – If extenuating circumstances make it inequitable for you to pay anything on your debt, this status puts a pause on the situation. You don’t pay anything, and the IRS doesn’t use its enforcement authority to collect on the debt. This status is not granted easily and is temporary!
Do you owe back payroll taxes to the IRS or South Carolina?
If you need a solution to your problem, give us a call. We can walk you through your situation and discuss the options available to you. You are not alone! We are here to help. Dial 843-771-4791 and ask for SC payroll tax attorney John Witherspoon.
REMEMBER…ALL INITIAL CONSULTATIONS ARE FREE!