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If you own a small business, it is critical that you process your payroll taxes properly because mistakes don’t just affect you; they could affect your livelihood and your entire family, too. At Sharrard McGee & Co PA in High Point and Greensboro, NC, you will find an experienced tax consultant who will prevent you from making mistakes that could jeopardize your business.

A High Point Tax Consultant Shares 7 Things to Know About Payroll Taxes

1. The IRS Targets Small Businesses

If you own a small business, you can count on the IRS to keep a close eye on you, even if you do everything by the book. The IRS pays special attention to small business owners because some of them attempt to cheat the system.

2.  You Could Lose Your Business for Past Due Payroll Taxes

If you owe past due payroll taxes, the IRS can literally force you to close up shop—without a court order.

3. The Penalties Add Up Fast

The IRS is fairly reasonable when it comes to past due income tax. They have little leniency on past due payroll taxes, though, and the financial penalties add up quickly, resulting in massive tax debts that you cannot simply eradicate by declaring bankruptcy.

4. Failure to File or Pay Is a Federal Crime

tax consultantIf you fail to file or pay your payroll taxes, it may be a federal crime, and you could be charged as such.

5. You Cannot Borrow Against Payroll Taxes

Borrowing funds from payroll taxes is illegal. Sometimes, small businesses dip into these accounts to cover operating costs, but doing so is against the law.

6. The IRS Can Go After You, Not Just Your Business

Business owners have some protection from creditors when it comes to their personal accounts—most of the time. The IRS is the one creditor that can go after individuals for business debt, like past due payroll taxes.

7. A Tax Consultant Can Help

If the IRS audits you, a tax consultant will help you resolve the situation as favorably as possible.

If you’re being audited or you have questions about payroll taxes, turn to a tax consultant from Sharrard McGee & Co PA. Visit their website to learn more about the corporate accounting services they provide, and call (336) 884-0410 to schedule a consultation in High Point or (336) 272-9777 to talk to someone in Greensboro. 

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