Twin Cities Business Tax Relief Attorneys
There are several types of returns businesses have to file with the IRS and the state taxing authorities. If a business has employees, trust fund and non-trust fund returns have to be filed and the proper amount of withheld money sent in with trust fund returns. If a business makes retail sales, sales tax returns must also be filed. There are deadlines for filing all of these returns and if these deadlines are missed, the IRS adds interest and penalties to the balance owed.
Trust fund taxes are the income taxes that an employer withholds from an employee’s pay check to cover the employee’s share of their personal income taxes. Businesses with employees are required to make periodic deposits with the IRS of the income tax they withhold from their employee’s paychecks. It is common for a business that is going through difficult times to delay filing their trust fund returns or submitting the funds that are due with the return. If too much time goes by and no return is filed and no money turned over to the IRS, the IRS can not only pursue the business itself, company owners can ultimately be held personally responsible for the failure to remit funds. The penalties associated with this failure to remit funds can be very large, and retaining someone who knows how to negotiate a settlement and give guidance on how to avoid the issue in the future can mean the difference between remaining in business and closing the doors.