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Possible ramifications of past due payroll taxes

On Behalf of | Jul 30, 2022 | Tax Disputes

While hiring employees to assist with operations can be beneficial in various ways, such an endeavor can also come with a great deal of responsibility. Payroll management is a topic that could prove integral to the well-being of a company, and even if business owners in Georgia take every measure to be accurate with payroll taxes, it could still prove difficult to avoid mistakes or keep from falling behind. Knowing the possible ramifications of dealing with past due payroll taxes and where to turn for advice should similar issues arise may prove integral to protecting the future of one’s company. 

What is at stake? 

Payroll taxes refer to a portion of a worker’s wages that employers hold back and pay to the IRS, and any inaccuracies in calculating tax amounts or failure to pay payroll taxes could have dire ramifications. Businesses that face past due payroll taxes may be at risk of encountering extensive monetary fines, and overdue balances may continue to accrue interests until brought up to date. The fines and penalties for such concerns may also grow severe each day taxes remain past due. 

In some cases, such issues could also lead to liens against business properties or even cause business owners to face criminal charges. However, there may be some scenarios in which a business might be able to file for exemptions for unreported or unpaid taxes. Business owners who cannot pay past due payroll taxes may also be able to seek relief through outlets such as Offer in Compromise but knowing how to initiate such a process could prove a daunting task. 

Seeking relief 

It might not always be possible to avoid falling prey to past due payroll taxes and facing similar issues can be a stressful and harrowing experience. Business owners in Georgia who struggle under the weight of payroll taxes could benefit from speaking with an experienced attorney for assistance in addressing the situation and evaluating their available options. An attorney can help a client better understand what is at stake and help create a strategy for relief that aligns with the needs and interests of his or her company.