15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

What Small Business Owners Should Know About Payroll Tax Problems

Payroll taxes can be a constant source of frustration for small business owners. In the worst cases, overdue taxes can actually result in a total loss of business. If you own and operate a small business, it’s imperative you comply with the IRS tax mandates to avoid hazarding your enterprise. No entrepreneur wants to see their legacy devastated by IRS penalties or massive tax-related debt — awareness is key to staying on the right path.

As a small business owner, you should be acutely aware of your tax risk. Owners of small businesses have been routinely targeted by IRS, having built a reputation over many years as tax evaders. These entrepreneurs are collectively identified as the main source for uncollected taxes. Simply because your business operates on a smaller scale doesn’t minimize the scrutiny — if anything, it puts your bookkeeping under the microscope.

As mentioned before, you run the risk of losing your business altogether at the hands of uncompromising IRS collection tactics. In regards to payroll tax debt, an appointed Revenue Officer has tremendous power in shackling your small business. Don’t be surprised to find the front door of your office padlocked if you’re reckless with your tax situation — the IRS doesn’t require a court order to operate in these instances.

Any payroll tax penalties you accrue can quickly spiral out of control. Tax penalties are generally assessed following a failure to file, failure to deposit, and failure to pay. Delinquent payroll tax deposits or filings can put a serious strain on your upcoming tax bill. It’s not uncommon to be wracked with 33% interest in a period as short as two weeks after filing past the due date.

In regards in to payroll taxes, perhaps small business owners should be most concerned about themselves — the IRS can pursue them personally for debt. Utilizing what is known as the Trust Fund Recovery Penalty (TFRP), the IRS can essentially circumvent the corporate shield altogether. It’s a scary situation that has even landed some small business owners behind bars.

Don’t let tax penalties force your small business out of existence. ATPP is recognized as a top payroll partner in the Los Angeles area. We provide full-service accounting specially geared toward your small businesses’ needs. Connect with us online for a quote or call us now at (818) 436-2775.

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