Relief for Business Tax Problems - Business Tax Help of Austin, TX
Austin, TX has a plethora of proud and ethical businesses that serve the local community. Many of which are facing crippling business tax problems that require local and professional business tax help.
Business tax problems can be classified into 3 buckets:
Payroll Tax Problems
When a Austin-area business lacks funds to meet it’s obligations, the business owner may use payroll tax withholdings to cover other business expenses. The owner may do this innocently, fully intending to “repay” the borrowed payroll tax funds, but often, business conditions fail to improve and the payroll tax goes unpaid. The IRS views this as a very significant business tax problem. The simple failure to file form 941 can be easily corrected by a tax accountant, but you must do so or you can be certain that the IRS will contact you quickly and consistently until the problem is cleared up. Failure to file returns or to pay past due payroll taxes will subject you to tax penalties and potentially liens and asset seizures. This particular type of business tax problem demands your prompt action as the consequences can put your company's welfare at jeopardy.
Worker Classification Issues - W-2 or 1099?
Although you may designate your workers to be independent contractors, the IRS may view them as employees based on the conditions of their employment. Of course, if they are in fact employees rather than independent contractors, then you will owe payroll taxes on their wages. If you are unsure regarding whether your workers are employees or independent contractors, you should consult IRS Form 22-8 “Determination of Employee Work Status for Purposes of Federal Income Tax Withholding” to help you figure out the correct worker classification for your staff so you can prevent future business tax problems.
Claiming False Tax Deductions
Another common business tax problem for Austin, TX businesses is the problem of miscalculating and thus overstating deductions, resulting in a deficiency in the tax paid to the IRS. Sometimes the line is grey as to whether an expense is deductible. An experienced CPA can help, although even CPAs can make mistakes in this regard, and moreover, clients are not always 100% forthcoming as to the purpose for individual expenses. The Internal Revenue Code places the burden on the taxpayer, not the Government, to prove that you are entitled to the deduction you claimed on your tax return.
Get Business Tax Help Today!
If you are an Austin business owner that wants to establish a plan to avoid business tax problems or if you have already been notified by the IRS that your business is in danger of IRS problems, contact us for a FREE consultation about your business tax problems. (512) 900-8234