Employment Tax (Form 941) Issues

Employment Tax Problems Can Cause Serious Trouble!

Employment Tax (Form 941) Issues

The IRS takes all tax collection seriously, but employment taxes, also known as “trust fund taxes” and “payroll taxes,” are pursued more vigorously than most other delinquent taxes. These are the deductions an employer makes from an employee’s paycheck for income taxes and F.I.C.A. (Social Security and Medicare) taxes.

Four times a year, Illinois employers are required to submit the employment taxes they deducted from paychecks to the federal and state governments. They must also add a matching contribution to F.I.C.A. tax payments. Unfortunately, employers sometimes spend the money they deducted or lack the funds to pay the matching contribution. When an employer fails to file a Form 941 with full payment of employment taxes, the employer can have a serious legal problem.

If you have been contacted by the IRS or state tax authorities regarding unpaid employment taxes, you need legal help. Call Thomas W. Lynch & Associates, P.C. at (708) 598-5999 to speak to an experienced tax lawyer about your options for resolving your tax problem. You can also use our online contact form to tell us about your problem.

Do Not Panic if You Are Visited by an IRS Revenue Officer

The IRS targets small businesses because it feels they are less likely to pay employment taxes. Many small business employers make innocent mistakes by failing to report wages correctly, by misclassifying an employee as an independent contractor, or by missing payment deadlines. Even innocent mistakes can be costly as penalties accumulate. You could lose your business by ignoring the problem.

The penalties for neglecting your employment tax obligations can include:

  • Penalties of up to 33% plus interest if you fail to pay within 16 days of filing your Form 941
  • Referral to the Department of Justice for possible criminal charges such as tax evasion or non-filing of tax returns
  • Coming after you individually for taxes owed even if your business is incorporated
  • Putting you out of business

The IRS can be extremely aggressive in its efforts to collect taxes. It can place tax liens and tax levies on your business and personal property. In some cases it can seize your business assets and padlock your business’ doors.

If you are visited by an IRS or Illinois tax law enforcement officer regarding nonpayment of trust fund taxes, do not panic. Explain that you need to talk to a lawyer before you say or do anything else. Immediately after that, you should contact a tax attorney at Thomas W. Lynch & Associates, P.C.

If you need an experienced Chicagoland attorney to help your business with its employment tax issues, call Thomas W. Lynch & Associates, P.C. at (708) 598-5999. You can also ask for an appointment or inquire about our services by submitting our convenient online contact form.

Never Face an Employment Tax Audit Alone

If you are suspected of failing to report all the wages you paid, an IRS Revenue Officer may want to conduct an audit of your payroll and other accounting records. Even if a tax officer seems friendly or just wants to ask a few questions, you should never submit to an interview or audit without first obtaining legal advice. It is easy to give the wrong answer or incorrect information. Once you have opened your mouth, you cannot take back what you say.

Never agree to answer questions or open your books for an audit without being represented by an experienced tax lawyer. Getting the right advice can save you money and prevent your problems from escalating.

The tax attorneys at Thomas W. Lynch & Associates, P.C. have vast experience in dealing with employment tax issues. That experience includes past employment with the IRS handling collections, audits, and enforcement, as well as past employment with the Illinois Attorney General’s office enforcing the state tax laws. Our attorneys have many years of experience serving tax clients in private practice. Our firm can also provide skilled criminal defense services for clients charged with tax crimes.

Our dedicated staff includes accountants and paralegals who are trained to assist you with your tax issues while providing support to our attorneys. If you have employment tax issues, call upon a team Thomas W. Lynch & Associates, P.C. to assess your case, advise you of your legal options, and negotiate on your behalf to give you the best opportunity for a satisfying result.

Your Initial Consultation with Us is Free and Confidential

To benefit our clients, we offer:

  • Free, confidential initial consultations
  • Evening and weekend appointments
  • Reasonable fees and easy payment arrangements
  • Two convenient southwest suburban locations near expressways.

To schedule a free initial consultation regarding your employment tax issues, call Thomas W. Lynch & Associates, P.C. at (708) 598-5999. You can also reach us through our convenient online contact form.

We serve Chicago and the Southwest Chicagoland suburbs, including: