Handling the Payroll Tax Audit and Back Taxes

Did you get a payroll tax audit letter or IRS notice of back payroll taxes you owe? Does your Company owe back taxes? Payroll tax audits are no fun and usually open up lots of tax problems for examination by the IRS. IRS audits can be costly to represent and time consuming. If you have a payroll tax problem you may need IRS representation right away.

Not Paying Payroll Taxes

When times are tough and you need the cash, it’s tempting to pay your payroll taxes to the IRS later and use the cash now. Not only are tax penalties quite harsh, but these problems have a way of snowballing from one period to the next and never get paid; which is what gets you in really big trouble.

Not paying your income taxes is one thing, but not paying your payroll taxes is much worse. Not paying your payroll taxes is a crime and you can be held both criminally and civilly liable. This is because the IRS gives special treatment to payroll taxes as it is viewed as not your money. Not paying your payroll taxes is viewed as not paying the IRS amounts that belong to your employees – not yours.

Steps to Solve IRS Audit taxs Problems

Well, the first thing you do is simply pay the taxes you owe. Unfortunately, if that’s all there was to it, you probably wouldn’t be here right now. So what’s your next option?

Your second step is to stop the bleeding. So you made a mistake, you needed the money and you used the payroll taxes to pay your bills. The problem is you probably have done this over and over again. This is what the IRS calls “cascading”. You need to show the IRS that the problem won’t happen again. How do you do this? You pay the most recent payroll taxes first. That’s right! Not the oldest taxes you owe, but the most recent. And you keep on paying your payroll taxes going forward on time.

Your third step is to deal with paying the old taxes. You can usually pay this through an installment agreement, or payment plan to pay your taxes over time. How much you need to pay and when will depend on how much cash you have available to pay your taxes going forward. A tax problem resolution specialist can help you complete the calculations and remit all the paperwork you’re going to need.

Strategies for Paying Back Taxes

As you can see, there are back tax payment strategies that can help you. There are other strategies of which taxes to pay and when to pay them as well. Now, don’t look to the IRS to help you – they won’t. It’s not in their best interest. But an experienced tax problem resolution specialist can. You just need to find the right IRS examinations to help you and foot the bill.

How the IRS Collects the Tax Debt

IRS tax debt help Miami have a special place in the heart of the IRS. As previously stated, the IRS gives special treatment to payroll taxes as it is viewed as not your money. Accordingly, the IRS will hold business owners and other responsible persons personally liable for these taxes.

This means that if the IRS tax settlement Miami can’t get at the money because the business doesn’t have it, it will go after your personal bank accounts. If one owner doesn’t have the money either, it will go after the other, and so on until they find someone to pay it. It doesn’t even have to be the owner of the Company – it can be an employee, the bookkeeper, manager or accountant or just about any other “responsible person”.

If you think it’s unfair that the IRS is coming after you, or you work in a Company that’s not paying its payroll taxes and you have certain control over payroll, seek immediate IRS tax lawyers Miami professional help. Payroll Tax Audit, IRS Tax Audit, Payroll taxes, IRS tax consultant, Payroll Tax Problems

IRS Tax Problems and Solutions

Your IRS tax problems begin with an IRS notice in the mail. Rest assured, you are not alone – there are thousands of taxpayers out there who are facing. IRS audits right now and don’t know where to start.

Dealing with the Internal Revenue Service (IRS) for your tax problems often requires specialized knowledge of US tax law and IRS procedure.

Why are you facing IRS tax problems?

The IRS notice or letter from the IRS will often explain why your tax return has been selected for examination. Depending on the complexity of your IRS tax problem, you might want to either resolve the issue yourself or ask for professional help.

What should your course of action be?

There are different types of IRS tax audits. Is it a correspondence audit where the IRS asks you to send copies of relevant documents for verification? Or is it a field audit where the examiner conducts the audit in person at their office or your place of business?

For the more simple IRS problems, you simply reply to the IRS letter attaching the relevant supporting documents requested. If provided, and you agree with the IRS’s claim for money owed, your solution is to simply send them payment for the assessed amount. You may disagree in whole, or in part to the proposed adjustments.

For the more complex examinations, you will be asked to call to schedule a meeting with an irs tax consultant and be provided with a more comprehensive listing of the documents requested.

Whichever the type of IRS tax audit you face, you must provide supporting documents in support of your tax return. Once you receive the IRS notice and understand your IRS tax problem, begin by gathering the relevant documentation to substantiate your claim.

Complex IRS Tax Problems need Professional Solutions

In the more complex IRS Tax examination, your IRS tax problems warrant a face-to-face meeting with the IRS examiner. In most of these situations, you will often need professional representation which by certified public accountants (CPA), licensed tax attorneys or enrolled agents. Only a CPA, enrolled agent or IRS Audit Tax Attorney can represent you before the IRS.

To find solutions to Payroll Tax Problems quickly and easily, you might want to take the help of the experts at irsaudittax.com. You will greatly benefit from their experience and expertise in resolving your tax problems. Perhaps, you might even walk away from that hefty penalty that the IRS has levied or save on your tax settlements with their help.

Tax Software

Individual Tax Returns have been traditionally the domain of desktop software. Laptops are lugged from client to client with rekeying and transcribing information as a common practice. The entire system leverages on Australian Taxation Office’s ELS (Electronic Lodgment Service) platform in itself a legacy and unreliable system.

ATO now confirms its determination to phase out ELS by 2015 onwards in favour of SBR (Standard Business Reporting) solution, a more effective and faster way of financial reporting.

What does this mean for the tax agent? After all, the best technologies used improperly do not help in the efficiency of overworked tax practitioners. Will simply changing the ATO’s infrastructure help tax agents to be more efficient? The answer is no.

As more and more applications are moving towards the cloud, statutory and financial reporting is non exceptional. Australia’s first ITR on Cloud solution via the GovReports platform was released last September, a fully managed solution that brings the flexibility of desktop solutions and multiplies it with the power of the cloud.

Here are top three reasons why tax payers should move to ITR on Cloud with GovReports.
• Access anytime-anywhere. Tax agents are no longer restricted by their desktop. You can bring tax returns straight to your clients by offering a personalised service via GovReports (Tax Software) secure cloud platform.
• Nothing to install or update. GovReports (Tax Software) is a fully managed service. ATO updates such as forms and schedules are updated without having to reinstall software.
• GovReports (Tax Software) acts as an electronic archive to securely keep client attachments online reducing the need for desktop clutter during tax season. Using latest storage solutions everything is storable and searchable.
GovReports (Tax Software) as a one-stop-shop for financial reporting brings state of the art technologies to traditional platform. And as one GovReports’ clients reference:

‘Using GovReports (Tax Software) in comparison to Agent Portal is like comparing driving a Mercedes Benz with Model T-Ford. They both achieve the same result but the ride is very different’