Owing taxes to the IRS can be a stressful event. You may not know why you owe the taxes, or how to go about paying them and this can cause you to put the matter off for a later date. This is a common mistake that people make, which ends with them owing even more money to the IRS.
If the IRS does not get a response from you, they will add penalties and interest to the amount, which over time, can add up to about 47.5% more than you originally owed. That's almost fifty percent more money!.. Another action the IRS can take is to place a tax lien against you, which will show up on your credit report. This will notify any lenders that you owe money to the IRS, and can hinder you from acquiring any new credit.
The IRS may decide to use another tactic, such as a wage garnishment, to get the money they are owed. With a wage garnishment, the IRS will contact your employer directly and they will stipulate an amount to withhold and send to them. This all happens before you get your paycheck, and you will only get what the IRS says you can have. This can cause a financial hardship and make it difficult to pay your other obligations. If you are experiencing any of these issues, contact San Jose Tax Attorney Service today.
Tax issues are not only for individuals, they can happen to small business owners as well. Delinquent payroll taxes can be a problem that small businesses face. The IRS will treat delinquent taxes like a broken business contract and the penalties will be large. One penalty, for instance, is the Trust Fund Recovery penalty and it is 100% of the amount you are behind on. That automatically doubles the amount you owe, making it that much more difficult to pay.
Form 940 and 941 tax forms are important forms that need to be filed by small business owners. The 941 form is a report of the earnings paid to your employees, as well as the business's withholdings, Medicare, and Social Security taxes. This form needs to be filed quarterly and gives the IRS a clear picture of the amounts of money being held out of employees paychecks. The form 940 is the Employers Federal Unemployment Tax Return. This is used to report the business's Annual Federal Tax Act, or FUTA, taxes. These taxes are used in conjunction with any state unemployment taxes to pay unemployment wages. If either of these are filed late, be prepared to pay penalties and fees. If you are a small business owner, and are confused by the forms you have to file, or if you already have
delinquent taxes, be sure to contact us today, so we can connect you with a tax professional.
San Jose Tax Attorney Service can help individuals and businesses alike, with all their tax debt needs. We work diligently to research and find the best and most qualified tax specialists in the area, for you. With the thousands of Americans that owe back taxes to the IRS, we decided that there should be an easier way for people to find the help they need. We developed San Jose Tax Attorney Service to save people, and businesses, time and money. Contact us today to be connected with a tax specialist to fit your specific needs.
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