Salt Lake City, Utah - Payroll taxes are the number one reason why businesses and their owners end up in our office. Here is why, in my experience most companies and individuals with payroll tax issues are good people or a good company that has faced a difficult challenge like COVID (in all my years of practice if you had told me something like COVID would shut down the world, I never would have believed you), supply chain issues that have affected payments from customers or clients, the bankruptcy of a customer or client, personal bankruptcy of a business owner due to crushing medical debt, divorce, changes in the economy, etc. life does not always work out how these companies and/or individuals wanted. Think about right now, interest rates are up and construction is slowing down. This impacts the general contractors as well as the subs.
When such challenges or struggles hit, one of the biggest tax missteps a company or an individual can make is to not pay payroll taxes. Payroll taxes are the number one reason why businesses and their owners end up in tax distress. Given that most businesses fail due to cash-flow issues, it is not surprising that taxes collected and withheld by the business are spent on the business when it struggles.
Tax Attorney, Eric Green, explained “payroll taxes” are “the easiest loan to take and the hardest to pay back: easy because there are no loan documents to fill out or permissions to ask. Just keep and spend the money. It is the hardest loan to pay back because, with all of the various penalties and interest, the struggling business finds itself in a financial hole that it has no hope of” escaping.
Over the next couple of weeks, I will be focusing on payroll tax issues and personal tax liability issues. Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal taxes and needs help to end their IRS nightmare, please contact us by either phone at (801) 323-2112 or email at: kbrown@strongandhanni.com or go to my personal webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/
Best,
Kent
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