Understanding 941 Payroll Taxes & Problems

As a business owner, you have a lot to worry about. Processing payroll often can’t be your top priority. Whether you do the work yourself or have a bookkeeper helping you, it’s easy to end up with errors when it comes to payroll taxes. Unfortunately, innocent mistakes, nonpayment, or unfiling can end up costing your company and can mean having to deal with the dreaded IRS. If you’re having a 941 payroll tax problem, read on to find out what you can do to get the matter resolved.

Understanding 941 Payroll Taxes

Under federal and state tax laws, a portion of employees’ wages must be withheld and remitted to pay taxes. The federal tax withheld from employees’ paychecks are known as the 941 payroll tax. As an employer, it’s your responsibility to calculate the amount that each employee owes based on their withholding status, deduct the right amount with each paycheck and then remit the money to the federal government and state agencies.

Trouble can arise if you fail to pay the correct amount or if you forget to pay at all. The IRS takes the 941 payroll tax very seriously, as it has an impact on your employees’ tax liability. If you owe back taxes or have unfiled payroll tax returns, the IRS can go after you, your spouse, your bookkeeper and your company’s officers to recoup the funds. That can mean bank levies, tax liens on property, A/R accounts receivable levies, garnishments and more.

What to Do if You Get a Notice

Ignoring a notice from the IRS about 941 payroll tax problems is a big mistake. The amount you owe will only increase if you leave the matter unresolved.

While the consequences of failing to respond to a notice can be severe, the good news is that the IRS can be reasonable when it comes to settling matters related to payroll tax. The government doesn’t want to put you out of business or take your home. As a result, the IRS is often willing to settle payroll tax issues through payment plans or lump sum settlements for less than the total amount owed.

Your best chance of getting a fair and affordable settlement is having an expert in IRS tax problems on your side to represent you before the IRS. A federally IRS licensed EA enrolled agent can help to work out an installment agreement, a partial payment installment plan or an offer in compromise that will allow you to repay the IRS and avoid complications like bank levies and property liens.

941 Payroll Tax Problem Help

If you’re in need of 941 payroll tax problem help, Mike Habib, EA, is here to help. A true IRS problem solver, Mike is registered with the IRS to provide professional tax representation and has helped many companies settle payroll tax problems with fair, affordable settlements and payment plans.

No matter what caused your 941 payroll tax issue, Mike will fight for you with the IRS and work hard to get you a satisfactory employment tax problem resolution. With his help, dealing with the IRS is simpler and less stressful, so you can focus on keeping your business going while the matter is resolved. For more information and a consultation, call Mike Habib, EA today at 877-788-2937.

About Mike Habib, EA NTPI Fellow®: Former Dave Ramsey ELP 2012-2019

Mike Habib is an IRS licensed Enrolled Agent who represents taxpayers facing 941 employment tax controversies in various metro areas such as Los Angeles, Whittier, Pasadena, Glendale, Burbank, Orange County, Riverside, Palm Springs, San Bernardino, Palmdale, Bakersfield, NYC, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery, Tampa, Orlando.