New Initiative for Payroll Taxes

Monday, December 28, 2015

The IRS currently developed a new initiative that will assist employers stay current with their payroll taxes.  This initiative is meant to be more effective and efficient for helping employers to identify if they are falling behind on any payroll or employment taxes. This will also assist employers catch up on payments and reporting requirements. This is now known as the Early Interaction Initiative.

The Early Interaction Initiative will allow employers the opportunity to be compliant and avoid unnecessary penalties or interest charges. For example, the Early Interaction Initiative will guide those employers who may have problems with their tax payments before there is an employment tax return filed. In this capacity, the IRS will assist employers directly via phone messages or communications with an IRS officer.

Previously, the IRS made contact with an employer if they noticed payment difficulties which usually occurred when the process was further along. This was usually after a return was filed and there were issues mounting. The IRS believes that employers are key players in the federal tax system. Therefore, they deserve the assistance and information necessary to maintain those responsibilities. This new interaction offer assistance early on before issues arise. 

Over sixty percent of taxes come through the payroll tax system and for this reason, legally, employers need to withhold federal income tax. In addition, Social Security and Medicare taxes are also withheld from employees’ wages.

Employers, ma at times inappropriately direct certain funds that have been withheld from their employees’ paychecks. These types of actions can cause legal issues and tax liabilities for the employer, not to mention penalties, interest charges and possible other repercussions to the business.

Many things can trigger the attention of the IRS.  If you need tax advice from Payroll Tax Attorneys and CP504 Attorneys, the Strategic Tax Lawyers can help!  The Strategic Tax Lawyers, LLP is a firm made up of an expert California Tax Attorneys, with years of experience in tax-related and IRS issues.  For a free consultation to assist you with your tax-related issues contact the Strategic Tax Lawyers at (800) 669-4775.