Payroll (941) Taxes in Atlanta
Tax Help for Georgia Employers and Business Owners
Businesses are expected to withhold Social Security, Medicare, and Income Tax from their employees’ wages. These taxes must then be reported to the IRS each quarter, along with the IRS 941 tax form. Such withholdings are considered “Trust Fund” withholdings/taxes because employers and business owners must hold these funds “in trust” until they are reported and paid to the IRS. The IRS relies upon employer withholdings to fund the day-to-day operations of the federal government. Because of this, the IRS pays a lot of attention to payroll and withholding taxes, and whether you have filed your quarterly 941 tax form.
Employers also must also file annually a 940 tax return. An employer’s failure to withhold or file its 940 return results in very serious consequences. We can help you fix that.
Trust Fund Recovery Penalty Statute
Congress enacted the Trust Fund Recovery Penalty statute so it could encourage prompt payroll tax payments and thus collect enough revenue to keep the government’s daily operations going. But the the statute comes with a harsh punishment for an employer who runs afoul of it. Trust Fund Recovery Penalty allows the IRS to transfer tax liability from a company over to an individual or group of individuals. In other words, if you are responsible for your company’s payroll and taxes, you could face serious personal consequences for failing to withhold these funds.
Consequences may include:
- Attempts to collect the funds owed from you personally
- Shutting down your business and selling its assets
- Federal criminal charges for the person the IRS deems responsible
The Wooten Firm will investigate your situation and perform due diligence to come up with a workable solution for you and your business. Since we are lawyers, we also can help you potentially rearrange your business structure to save on taxes and possibly avoid future payroll tax liability. Let the Wooten Firm help you rescue your business today.
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