Cracking Down on Businesses with Payroll Taxes Problems: New Economic Stimulus Plan Calls for Heightened IRS Enforcement

I recently blogged about the new economic stimulus package and how it affects your IRS bill. In addition to funding deficit-reduction activities, the federal government is looking at ways to close the tax gap by taking a closer look at employment tax returns.

According to the most recent estimates, payroll tax mistakes cost the IRS $15 billion – and tax experts agree that today’s figure is much greater! For several years now, the agency has been pushing to increase tax compliance by taking aggressive action against tax cheats and tax promoters.

The IRS is in the early stages of implementing random exams of employment tax returns (the plan is to start in 2010). They hope to figure out how much payroll tax mistakes such as misclassification of workers and other employment tax errors actually contribute to the tax gap.

Because of the growing tax gap, more and more Americans are facing audits – as well as intrusive, and sometimes illegal, collection tactics by the IRS. Small business owners also need to know how to avoid common payroll tax problems, and how to avoid and resolve tax audits to protect the future of their businesses.

Generally, owing payroll taxes is the “kiss of death” for many small business owners, and many lose their businesses. Your payroll tax debt and penalties can add up quickly! And it’s important to note that the IRS is the only creditor on the planet that can pierce the corporate veil  and go after the owners/shareholders/members individually. They do this by assessing what’s commonly referred to as the Trust Fund Recovery Penalty (TFRP).

If you are a small business that needs tax help, you need to hire specialized tax resolution experts to fight the IRS on your behalf.

If you have payroll tax problems or need IRS help, our specialized staff of tax attorneys, CPAs, and EAscan help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-477-7762.

More Tax Help, IRS News and Tax Relief Tips:

  1. IRS Asserts Position on Tax Protesters: Sanctions Imposed for Advancing and Maintaining a Frivolous Argument
  2. We’ve Expanded to Help More Taxpayers Resolve Their IRS Tax Problems!
  3. Why the IRS Picks on Small Businesses and How to Avoid Triggering an Audit
  4. IRS Announces Unprecedented Opportunity for Recession-Burdened Americans to Settle Outstanding Tax Debts
  5. Recipients of Stimulus Money Owe More Than $220 Million in Back Taxes

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5 Responses to “Cracking Down on Businesses with Payroll Taxes Problems: New Economic Stimulus Plan Calls for Heightened IRS Enforcement”

  1. » Small Business Tax Incentives and Credits in American Recovery and Reinvestment Tax Act of 2009 » Tax Relief Tips from the Experts at Tax Resolution University » Blog Archive Says:

    [...] billion of net tax cuts. The new stimulus act includes tax provisions that may impact you and your small business. Small companies will want to familiarize themselves with the plan’s new tax relief [...]

  2. » Tax Changes in the American Recovery and Reinvestment Act of 2009 » Tax Relief Tips from the Experts at Tax Resolution University » Blog Archive Says:

    [...] The IRS is implementing tax-related provisions of this new program as quickly as possible. I recently blogged about how this new economic stimulus law could affect your tax bill, and how heightened tax compliance efforts could impact small businesses. [...]

  3. Hire a Good Number Cruncher: Save Money and Avoid IRS Problems | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] The IRS says the 60% of taxpayers file a return signed by a preparer. I was recently interviewed by Consumer Report’s Money Adviser for an article about the importance of hiring a good tax preparer. These days, having a good number cruncher can help you not only minimize your tax liability, but also keep you out of trouble with the IRS as they are stepping up enforcement. [...]

  4. Take Control of Your Business Finances - Tips for Staying Up to Date and Organized with Your Tax Documentation | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] and documentation is a must for any business owner. Plus, if you’re audited by the IRS–and more small businesses are being targeted by the IRS today than in the past–you’ll need to provide the IRS auditors with a full paper trail, or [...]

  5. Prevent IRS Payroll Tax Problems: Tax Help for Business Owners Who Want to Avoid IRS Trouble | Tax Relief Tips from the Experts at Tax Resolution University Says:

    [...] of this tremendous sum of uncollected money: small businesses. With the IRS closing its grip on enforcing tax payments, it is crucial for small business owners to know what they can do to safeguard their business from [...]

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