Ian Woodman, Idaho tax resolution services owner, has seen many business owners struggle with unfurling the mess they’ve gotten into by not filing payroll taxes throughout the year. He knows that if you own your own business, tax time can be complex. Ian Woodman of Idaho based Instant Tax Solutions explains how tax resolution specialists can help employers who have gotten into a bind on payroll tax filing.
By law, Ian Woodman of Idaho explains, employers are required to withhold federal tax, social security and Medicare tax, and unemployment taxes. Withholding must then be filed with the IRS and failure to do so results in severe penalties—in some cases up to 100 percent of the amount not paid, explains Ian Woodman. Idaho based Instant Tax Solutions often works with employers who are facing penalties.
As Ian Woodman, Idaho business co-owner, explains, there are several ways business owners get into trouble with the IRS. One is by not filing on time, but businesses also can run into trouble because of shoddy record-keeping. Businesses are likely targets of audits and poor records can result in additional charges and penalties, as Ian Woodman ’s Idaho Instant Tax Solutions has found.
A third issue that causes taxpayers to seek out the services of Instant Tax Solutions is borrowing from payroll tax money. This is an obvious no-no, but Ian Woodman, Idaho co-founder of Instant Tax Solutions, has seen business owners resort to such measures, especially in these tough economic times. As Woodman explains, payroll taxes must either be filed or deposited within three days of the date on the employee’s paycheck.
Payroll taxes are sometimes referred to as “trust fund taxes,” describes Ian Woodman. Idaho business owners are essentially withdrawing the funds from the employee’s paycheck, then holding them in trust until they are reported and submitted to the IRS. Business owners are responsible for filing quarterly taxes using a Form 941, “Employers Quarterly Tax Return.” Additionally, an employer will annually file a Form 940, “Employers Annual Federal Unemployment Tax Return.”
In some cases, Instant Tax Solutions can work with the IRS to resolve the debt incurred due to late payroll taxes. Whether or not this can be accomplished will depend on an individual situation, says Ian Woodman. Idaho residents should consult Instant Tax Solutions to find out what options are available for their particular situation, says Woodman.
Ian Woodman, Idaho co-owner of Instant Tax Solutions, opened his first business at the age of 25, learning quickly the principles that have made his business such a success today. Prior to co-founding Instant Tax Solutions, Ian Woodman of Idaho co-founded SIR custom homes, building high-end properties until the real estate market crashed. Ian Woodman, Idaho resident, is married with four children.