Q: What do I do if I am behind on Payroll (941) Taxes for my business?
A: If you are behind in either filing or paying your 941 quarterly payroll returns the IRS will elevate their concern, as this fiduciary responsibility is most important. The standard federal deduction monies taken from your wage earners as an employer are to be properly and timely reported to the IRS, and the funds simply forwarded to the IRS on behalf of your employees.
Many employers in this less than perfect economy are forced to shirk their responsibility and utilize these fiduciary funds for anything other than their intended purposes, such as general cash flow, accounts payable, etc. These actions inflame the IRS more than any other reason, as they view this action as "stealing from the Government". Repeatedly engaging in this pattern and practice can be a true sign of a struggling business, and real, effective, professional help is the mandate at that point.
A good tax lawyer can provide strategies to not only deal with the back tax debt and filings, but implement a plan to stay current moving forward while simultaneously keeping your business afloat. This is not an easy feat. Hire a good tax attorney.They can SAVE your business.