Business Withholding Tax
Dave has owned a successful Italian restaurant for 10 years. Things were going well and he was always able to meet all of his financial obligations until the economy went south a couple of years ago.
What do you know about business withholding taxes?
Dave started to notice that things were getting tight and he had to choose which bills would get paid each month. When it came time for Dave file his quarterly income tax returns for employee withholding taxes, Dave realized that there was no way he was going to be able to pay the tax that he owed. He thought that since he wasn’t going to be able to pay the tax that there was no reason for him to file the return and chose to ignore his quarterly filing deadline.
As the months passed, Dave began to receive letters from the IRS stating that not only were his employee withholding taxes due for the one quarter he missed, but that the next quarter was soon due and the IRS expected the money in one lump sum. Dave knew that he couldn’t come up with two-quarters worth of business withholding taxes and hoped that the reminder letters would be as far as the IRS would go until business picked back up.
Paying Back Those Withholding Taxes
A few months later, Dave was terrified when he got a letter from the IRS stating that unless he paid his back taxes within 30 days, they would file a lien against him and consider closing his business. How would he ever be able to pay these taxes, much less live, if his business was closed? Plus, his business had just started to pick back up. If the IRS would be willing to work with him, he was more than willing to pay the taxes.
Dave decided that ignoring the problem wasn’t working and decided to call Steidl and Steinberg Tax Services. The attorney at Steidl and Steinberg Tax Services was able to help him prepare his delinquent returns and get on an affordable payment plan to get caught up on the taxes. From there, Dave was always sure to file his returns on time and keep current with his tax payments. Dave was able to keep his business running and now doesn’t have to live in fear of the IRS.
Does this sound familiar? If this could be you, consider contacting the experienced attorneys at Steidl & Steinberg to learn more about business withholding taxes and what they mean for your business.