Tips to Deal with 941 Payroll Tax Problems

Being an employer, you must pay certain taxes for your employees, which include federal income taxes, federal unemployment taxes, Medicare and social security taxes etc. Even if you are an employer to one or two people, paying the 941 tax is a must for you and failure in paying these taxes within the given time period can lead to levies, penalties and even garnishments. Whether you need to make payroll tax deposits on a semi-weekly or monthly basis depends on the size of your payroll, which is determined by the IRS.

Here are some tips that will help you deal with 941 payroll tax problems –

•    Check out how severe the problem is and if the IRS is hammering you with huge penalties and fines. If not, try to solve the problems either by filling up the forms, or by making the deposits as soon as possible. Remember, this is the easiest and cheapest possible solution for the tax problem.

•    If the tax problems have reached a severe level, probably you need to hire a professional who will represent you in front of the IRS. This is important because an experienced agent has the specialized knowledge using which he will be able to represent you at all the administrative levels of the IRS.

•    Ask your tax lawyer if he can make any kind of negotiation or settlement between you and the IRS. Though these type of settlements will never relieve you of the responsibility of making the tax deposits that you failed to make, your tax attorney might reduce or remove the amount that you are supposed to pay in the form of penalties, fines or interests.

These are some of the most effective tips to follow while dealing with 941 payroll tax problems. It is always advisable to contact an experienced professional before it’s too late.