Business Tax Help for Raleigh-area Business Owners
Although North Carolina houses one of the lowest corporate tax rates at 6.9%, business tax problems are still common throughout the Raleigh area. This type of tax problem is non-discriminatory, meaning it can affect businesses of all sizes in any industry. Some business owners run into trouble because they do not have much experience with the IRS and their filing requirements. Most business tax problems tend to fall into of the following categories:
Payroll Tax Problems - Form 941
Payroll tax problems are serious business tax problems and are pursued aggressively by the IRS. This type of business tax problem commonly results when businesses owners use their limited funds to pay operating expenses without putting aside money withheld from employee’s paychecks for payroll taxes, which is essentially viewed as breach of trust with the IRS.
Payroll tax problems also arise from a failure to file a business tax return on time or at all. If you failed to file a Form 941, a local tax accountant can quickly file it for you, but you must do so or the IRS may show up unexpectedly. They may even seize your company's assets, leaving you with no money to operate your business, eventually causing your business to fail.
If you fail to act, you will eventually be forced to pay the initial amount in addition to payroll tax penalties and interest. Fortunately, they can be resolved, but they require immediate attention.
Worker Classification – Employee or Independent Contractor?
Some employers miss-classify their employees as independent contractors in order to avoid paying employment taxes. Whether this is on accident or purpose, if the IRS suspects that you may have misclassified your workers, you may be subject to substantial back tax liability as well as penalties and interest. If you've received a notice challenging your tax return, you should contact our tax attorneys as they can work with you to ensure the most favorable determination in how your workers are classified.
We all make mistakes. Sometimes the IRS simply disagrees with how you've characterized an expense. After all, the Internal Revenue Code is far from a model of clarity and can be confusing to experts much less ordinary taxpayers. If the IRS has challenged your return or questioned a deduction, our seasoned tax attorneys at Raleigh Pure Tax Resolution can help you to negotiate a successful resolution.
Raleigh area businesses struggling with tax problems can contact us today for a FREE consultation.