Dealing With 941 Payroll Tax Problems In Minneapolis, MN
The most common and most pursued issue in regards with tax collection by the IRS is the 941 Payroll Tax Problems. It can happen due to a multitude of reasons such as human errors or ignorance which leads to small business to large corporations getting in trouble with the IRS.
Most of the time, people have trouble with their 941 payroll taxes because the either didn’t file their payroll taxes properly or didn’t bother to file them at all. In most cases, people already pay their payroll cash deposit but end up having trouble with the 941 payroll tax form. This can easily be cleared up by having a little talk with the IRS and sometimes they will let you off easy with a small penalty, but some people might not be as lucky.
The major problem the 941 payroll tax occurs when people don’t or couldn’t make the required deposit amount before the designated time. Even if you run a business with only one individual employed, you still need to pay the specific deposit requirements. The most common of these tax deposits are:
- Federal Unemployment tax
- Social Security tax
- Medicare tax
- Federal income tax
You are required to deduct the following taxes from your employees pay, furthermore it’s your job to deposit them. Not depositing these funds can lead to major trouble. Quite a few of these tax liabilities are reported to the IRS quarterly via IRS Form 941, and others are reported annually by using Form 940.
Keep in mind that reporting and depositing are two entirely different processes. Reporting means giving a detailed explanation of the deposit made, whereas depositing means actually sending the physical money.
With regards to the size of your payroll, you will be required to either deposit payroll tax either bi-weekly or monthly. You don’t get to choose the method of which you deposit the payroll tax; it is decided by the IRS when you first file your taxes.
Not having the money to make these deposits or forgetting to make them leads to business owners facing a lot of trouble from the IRS. Even if you planned to pay it at a later date, you will still end up having to deal with all kinds of issues. After you miss even a single deposit, you will start receiving letters which seem friendly at the start. If put off this task, you’ll soon incur major penalties.
What to Do?
If you can somehow manage to fill out the form and pay the deposit before the IRS officially start targeting you with excessive fines and penalties, do it without hesitation. It is by far the most lucrative and best option. If your situation has escalated to a serious level, then contact an experienced tax professional immediately so they can present your case to the IRS to make sure you get out of the situation with minimal damage.
Since an experienced tax professional has gone through extensive training and skills to successfully negotiate a settlement, this will prove advantageous to you. Keep in mind that the payroll tax has to be paid either way, but an experienced tax professional can greatly reduce the charges brought on by fines and penalties.
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