Oftentimes, I’ll meet a new business owner who simply doesn’t respect the power of the IRS.
Typically, the small business owners is just starting out. He or she figures that they don’t really have the money or even the wherewithal to deal with paying their payroll taxes, and so they ‘start’ to get behind.
This can be a routine that starts innocently enough, but then just gets bigger and bigger and bigger. Amazingly, you might not even hear from the IRS for many months. You have quarterly obligations, but you may have ignored that as well, so the IRS won’t even know you exist.
Eventually, an employee is going to want a W-2, or somebody files for unemployment, or maybe you got visited by the labor department.
But that’s OK. The IRS is patient. They barely even know who you are, and you figure that’s a problem for another day.
You can do this with about 10 employees and find out that in a year’s time, you owe $50,000.
So now the IRS knows who you are, and they are not very lenient about people who don’t pay payroll taxes. That’s because payroll taxes are mostly a ‘Trust Tax’, whereby your employees entrusted you to turn their witholdings over to the government.
While you’re in business, the IRS can easily seize money from your bank account, they can even padlock your doors.
Make sure you’re staying on top of your obligations or get out of business.
My clients are confident knowing that as long they do what we tell them, they’ll be fine with the government. We’ll even pay any penalty if the client did what we told them to do.
Are you confident the IRS can’t come after you?
If you want business and financial confidence, take a look at Appletree Business Services’ Business Financial Confidence Map.