Understanding Payroll Tax Problems in Rochester and How We Can Help

Payroll taxes are an essential responsibility for any business owner. These taxes—covering federal income tax withholding, Social Security, and Medicare—are not just business expenses; they are the funds you withhold from employee wages and submit to the IRS on their behalf. Failure to properly manage payroll taxes can quickly lead to serious financial and legal troubles with the IRS.

If you’re struggling with payroll tax issues, Charles Young, CPA in Rochester, NY, is here to help. With over 24 years of experience, I understand how these problems arise and, more importantly, how to resolve them.

What Are Payroll Tax Problems?

Payroll tax issues typically occur when businesses:

• Fail to deposit payroll taxes on time.
• Miscalculate the amounts owed.
• Fall behind on filing Form 941 (Employer’s Quarterly Federal Tax Return).
• Improperly classify employees as independent contractors.

These problems can snowball quickly because the IRS views unpaid payroll taxes as a significant offense. Penalties are steep and can include:

• Fines for late payments or filings.
• Interest charges on unpaid taxes.
• The Trust Fund Recovery Penalty (TFRP), which holds business owners personally liable for unpaid payroll taxes.

Why Are Payroll Tax Problems Serious?

The IRS considers payroll tax funds to be held “in trust” for employees, meaning businesses are merely custodians of these funds. If you fail to remit payroll taxes, the IRS takes swift action. This could lead to:

• Wage garnishments and bank levies on your business accounts.
• Federal tax liens that jeopardize your business assets and credit.
• Escalation to criminal charges in severe cases.

These consequences not only threaten your business but can also affect your personal finances and reputation.

How Can Charles Young, CPA, Help?

At Charles Young, CPA, we specialize in helping businesses resolve payroll tax problems and get back on track. Here’s how we can assist:

1. Immediate IRS Representation

When the IRS is pressuring you, time is of the essence. As a Certified Tax Resolution Specialist and NTPI Fellow, I’ll step in to communicate directly with the IRS on your behalf. This ensures your rights are protected while we work on a resolution.

2. Negotiating Payment Plans

If your business cannot afford to pay the full amount immediately, we’ll negotiate a realistic payment plan with the IRS. Options like an Installment Agreement or a Partial Payment Installment Agreement can help you manage cash flow while addressing your tax obligations.

3. Seeking Penalty Relief

IRS penalties for late payroll tax payments can be significant, but we can often negotiate to have penalties reduced or eliminated. By demonstrating reasonable cause—such as unforeseen financial hardship—we can help you regain control.

4. Trust Fund Recovery Penalty Defense

If the IRS is attempting to hold you personally liable through the TFRP, we’ll carefully review your case to ensure you’re treated fairly. We’ll work to mitigate personal liability or reduce the assessed penalties.

5. Long-Term Tax Compliance Strategies

Resolving payroll tax problems is only part of the solution. We’ll help your business implement robust processes to ensure future compliance, reducing the risk of recurring issues.

Don’t Face Payroll Tax Problems Alone

Dealing with payroll tax problems can feel overwhelming, but you don’t have to face them alone. With my expertise in tax resolution and my commitment to personalized solutions, I’ll guide you every step of the way.

Located in Walworth and serving businesses throughout Rochester, NY, and beyond, I’m here to provide you with the professional, friendly assistance you need.

If payroll tax problems are threatening your business, call me at (585) 329-2249 or email me at Charlie@cjyoungcpa.com today. Let’s work together to find a solution and restore peace of mind to your business.

Confidential and Non-Judgmental Service

We understand that dealing with the IRS can be sensitive. Our team provides confidential, respectful, and non-judgmental service, focusing on your financial well-being and peace of mind.