Bowling Green Payroll Tax Lawyer

Bowling Green Payroll Tax Lawyer

Bowling Green Payroll Tax Attorney

Payroll taxes are a critical part of the financial infrastructure in the United States. They are the taxes employers pay on their employees’ behalf to finance social welfare programs that benefit the community at large, like Social Security, Medicare, and other government benefits. If you are an employer, it is essential to understand your obligations concerning payroll taxes. Failure to comply with the law can result in hefty penalties, including fines and jail time in Bowling Green, Ohio. However, if you are an employee, you should also be aware of your rights with respect to payroll taxes to ensure that you are not being cheated out of your hard-earned money.

At Mockensturm, Ltd., our Bowling Green payroll tax lawyers can help you with all aspects of payroll taxes, from compliance to disputes. We represent our clients in a wide range of payroll tax matters. We understand the law and can help you protect your rights and interests. Furthermore, we appreciate the importance of payroll taxes and are driven to help our clients achieve the best possible outcome in their case.

Whether you are an employer or an employee, if you have questions about your rights and obligations regarding payroll taxes, we encourage you to contact our Bowling Green tax collection law firm for a confidential consultation. Our attorneys will review your case and provide honest, straightforward advice about your best course of action.

Bowling Green Payroll Tax Lawyer

What Are Payroll Taxes?

Payroll taxes are a type of tax levied on wages or salaries. Employers are typically responsible for withholding these taxes from their employees’ paychecks and then remitting the funds to the government. Payroll taxes are generally imposed at the federal and state levels, although the specific rates and eligible wage types can vary depending on the jurisdiction. In the United States, payroll taxes are often referred to as FICA taxes, which stands for the Federal Insurance Contributions Act. This act imposes payroll taxes on wages to fund programs like Social Security and Medicare. At the state level, payroll taxes are typically used to finance unemployment insurance programs. In most cases, employers and employees must pay into these state-level programs.

What Is the IRS?

The IRS is the federal agency responsible for administering and enforcing tax laws in the United States. It is a division of the Department of the Treasury and is tasked with collecting taxes, enforcing tax laws, and providing guidance to taxpayers. The IRS also administers payroll taxes, meaning that it is responsible for ensuring that employers withhold the correct amount of payroll taxes from their employees’ paychecks and remit the funds to the government in a timely manner. If an employer fails to comply with tax laws, the IRS can impose penalties, including fines and jail time.

What Are Common Payroll Tax Disputes?

Many payroll tax disputes arise because of confusion about the tax classification of employees. For example, some employers mistakenly believe they can avoid paying payroll taxes by treating workers as independent contractors. However, IRS tax collection regulations have strict rules about who can be classified as an independent contractor, and most workers need to meet the criteria. As a result, employers who misclassify their employees may be subject to significant penalties.

Other common disputes involve errors in calculating withholdings or failing to remit taxes to the government properly. These mistakes can often be corrected by working with the IRS to establish a payment plan. However, if the IRS believes that a taxpayer has intentionally withheld taxes, it may pursue criminal charges.

Other common payroll tax issues that warrant legal assistance include:

  • Tax liability disputes for tips or other forms of income not subject to traditional payroll withholdings: In settings such as restaurants, employers may be required to withhold payroll taxes on tips or other forms of income not subject to traditional withholdings. If an employer does not adequately withhold these taxes, the IRS may come after the employer or employee for the unpaid taxes, plus interest and penalties. Keeping an eye on your withholdings and understanding your tax liability can help you avoid these disputes.
  • Unreimbursed business expense disputes: Employees who are required to pay for their own business expenses (such as mileage or travel) may be able to deduct these expenses on their taxes. However, tax-exempt organizations do not reimburse employees for these expenses. In these situations, employees may be able to file a claim with the IRS.
  • Deductions for health insurance or other benefits: The IRS has strict rules about what types of deductions can be taken for health insurance and other benefits. If an employer incorrectly deducted these taxes from an employee’s paycheck, the employee may be able to file a claim with the IRS.
  • Payroll taxes in bankruptcy: In some cases, taxpayers can discharge their payroll tax debt in bankruptcy. This happens when the taxes are considered “non-dischargeable,” usually when the taxpayer has willfully failed to pay their taxes. However, the taxpayer may still be on the hook for interest and penalties even in these cases.

Regardless of the specific payroll tax dispute you are facing, it is important to seek legal assistance as soon as possible. An experienced tax collection attorney can help you understand your tax rights and obligations and can represent you in negotiations with the IRS. With the right legal help, you can resolve your payroll tax dispute while minimizing difficulty.

What Are the Penalties for Not Paying Payroll Taxes?

The penalties for not paying payroll taxes are a significant incentive to encourage businesses to withhold money from employee paychecks in the first place. Every month that the tax remains unpaid, the IRS assesses a failure-to-pay penalty of 0.5% of the unpaid taxes. This goes up to 25% of the unpaid tax, depending on how long the unpaid tax liability remains.

If an employer gets into a situation where they cannot pay their payroll taxes, they should immediately contact the IRS. The agency offers many options for taxpayers who are having difficulty paying their taxes, including short-term payment plans and long-term installment agreements. These arrangements come with their own penalties and interest, but they can help taxpayers avoid further penalties for not paying their taxes. If an employer does not proactively address their payroll tax debt, the IRS may eventually take enforcement action, such as levying bank accounts or wages. They may also file a notice of a federal tax lien.

Small Business Considerations With Payroll Taxes

Small businesses are particularly vulnerable to payroll tax issues because they often lack the resources of larger businesses. This can make it difficult for small businesses to keep up with payroll tax obligations, particularly during times of financial difficulty. As a result, small businesses should be especially careful to ensure that they correctly withhold payroll taxes from paychecks and remit them to the IRS in a timely manner.

In addition, small businesses should be aware of the IRS’s payroll tax deposit rules. These rules require businesses to deposit payroll taxes semi-weekly or monthly, depending on the amount of taxes owed. If a business fails to make a required deposit, it may be subject to penalties, even if the taxes are paid in full and on time.

Finally, small businesses should be aware that they may be subject to payroll tax audits by the IRS. These audits can be triggered by a number of factors, such as discrepancies between the payroll taxes reported on employee W-2 forms and the amount of taxes withheld from paychecks. If your small business is selected for a payroll tax audit, it is important to seek out legal assistance as soon as possible. An experienced payroll tax attorney in Bowling Green, Ohio can help you understand the audit process and represent you in negotiations with the IRS.

Establishing Your Business With the IRS

If you are starting a business, there are a few things you need to do to make sure that you comply with payroll tax laws:

  • First, you must obtain an employer identification number (EIN) from the IRS. You will use this number to identify your business for tax purposes. It has a similar purpose to an individual’s Social Security number, but for businesses. Keep this information secure, as you will need to provide it to your payroll service provider and the IRS when filing your business’s tax returns.
  • Next, you need to register your business with the IRS for payroll taxes. This can be done online through the IRS’s Business Registration portal. The process is relatively simple and only takes a few minutes to complete. You will need to know your business’s EIN, business type, and principal place of business. You will also need to create a unique user ID and password for the portal.
  • Once you have registered your business, you will need to set up a payroll tax account with the IRS. You can do this by calling the IRS’s Business & Specialty Tax Line or by completing and mailing Form SS-4, Application for Employer Identification Number. You will need to provide your business’s EIN, business type, and principal place of business. You will also need to designate a responsible party for your payroll tax account. This can be an individual or a business entity.
  • Once you have set up your payroll tax account, you will need to start making deposits. The IRS requires businesses to deposit payroll taxes either semi-weekly or monthly. The amount you will need to deposit will depend on the taxes that you withhold from your employees’ paychecks.
  • Finally, you need to set up a system to withhold payroll taxes from employee paychecks and remit them to the IRS. This includes choosing a payroll tax deposit schedule.

If you are starting a business, large or small, it is important to ensure that you comply with all payroll tax requirements. An experienced tax attorney can help you meet all your obligations and resolve any payroll tax issues that may arise.

What Does a Tax Attorney Do?

A tax attorney has many responsibilities that require them to stay abreast of changes in tax laws and court decisions that can impact their clients. They must also communicate effectively with the IRS on their client’s behalf. A tax attorney’s specific responsibilities may include:

  • Providing advice on compliance with tax laws: This includes helping clients understand their tax obligations and ensuring that they take all the deductions and credits to which they are entitled.
  • Representing clients in audits: If the IRS audits a client, the tax attorney will represent them in front of the IRS. This includes responding to IRS inquiries, providing documentation, and negotiating on the client’s behalf.
  • Preparing and filing tax returns: The tax attorney will ensure that the client’s tax returns are accurate, complete, and filed promptly.
  • Defending clients in tax court: If a client cannot reach an agreement with the IRS, the tax attorney will represent them in tax court. This includes preparing and filing any necessary documents and representing the client at trial.
  • Assisting with tax planning to minimize liability: The tax attorney can help clients plan their affairs to minimize their tax liability. This includes advice on structuring business transactions, investing, and estate planning.
  • Resolving tax disputes: The tax attorney can assist with resolving disputes with the IRS, including negotiating payment plans, settlements, and the release of levies and liens.

With so many different directions a case can go, the profession of a tax attorney is both immensely challenging and rewarding to keep up with. If you are facing a payroll tax dispute, it’s important to seek the help of a qualified tax attorney to help you resolve the issue.

How to Hire the Best BG, Ohio Tax Attorney

Many people wait until they are in the middle of an IRS audit or have another type of tax problem before seeking out the assistance of an attorney. However, it is actually best to establish a relationship with one before you need them. That way, you can secure the best possible representation.

There are many things to keep in mind when hiring a tax attorney:

  • Make sure the attorney is licensed to practice in your state: Each state has its own rules and regulations regarding the practice of law. You want to be sure that the attorney you are hiring is licensed to practice in your state and that they are familiar with the state’s tax laws. Trying to work with someone who is not licensed in your state can cause a great deal of trouble and may even worsen your situation.
  • Check their qualifications: You want to be sure that the attorney you are hiring is qualified to handle your case. This includes checking their educational background, their professional experience, and whether they have any specialized training or certifications in tax law. This can dramatically impact the outcome of your case. Also, ask about their track record. See if they have any statistics on how many similar cases they have handled and what the results were. You are hoping to see a high success rate.
  • Seek online reviews: These days, you can find reviews for almost anything online. When you are looking for a tax attorney, be sure to check out online reviews of their business tax services to see what others have to say about their experience. This can give you some insight into whether the attorney is someone you want to work with. It is important to take each review as one person’s opinion, but it is probably best to look elsewhere if you see a pattern of negative reviews.
  • Get a consultation: Once you have narrowed down your choices, set up a consultation with each lawyer. This will allow you to ask them questions about your case and get a feel for how they would handle it. This initial meeting serves not only as a discovery process for you but also for the attorney. They will be able to see if your case is something that they are interested in taking on, and you will be able to get a sense of their personality and how you would work together.
  • Be upfront about your budget: When hiring a tax attorney, you want to be sure you are upfront about your budget. Attorneys can be expensive, and you do not want to end up in a situation where you can’t afford to pay their fees. Be sure to discuss your budget upfront and be clear about what you are willing to spend. This will help the attorney determine if they are able to work with you, and it will help you narrow down your choices. Also, make sure to assess the long-term costs of working with an attorney and the potential benefits. This can outweigh the short-term costs in some cases.
  • Communication style: One of the most important things to consider when hiring a tax attorney is their communication style. You want to be sure that they are someone you feel comfortable communicating with and that you feel confident in their ability to represent you. Everyone has their own communication style, so be sure to find an attorney whose style meshes well with your own. This is important not only for your meetings together, where you will be discussing sensitive information but also for how they speak to others on your behalf and negotiate.
  • Trust your gut: In the end, you want to go with your gut when hiring a tax attorney. If you have a good feeling about someone, chances are they will be a good fit for you. If you have any doubts, it is probably best to look elsewhere. The last thing you want is to regret your decision, so trust your gut and go with your gut feeling.

These are just a few things to keep in mind when you are looking for a tax attorney. Be sure to do your research, and do not be afraid to ask around for recommendations. The decision of who to hire is ultimately up to you, but following these tips can help you make the best decision to advance your case with tried and true tax law strategies.

How Much Does a Tax Attorney Cost?

The cost of hiring a tax attorney varies depending on the complexity of your case and the lawyer’s experience. There are also various billing arrangements, such as:

  • Hourly rates: These arrangements are the most common. You will be billed for each hour the lawyer spends working on your case, including time spent in meetings, researching, and preparing documents.
  • Flat fees: A flat fee is a set amount that you pay the lawyer upfront, regardless of how much time they spend working on your case. This type of arrangement is typically used for simpler cases.
  • Retainer: A retainer is a deposit you pay the lawyer that is used to cover the lawyer’s fees. The lawyer will then bill you for any additional time spent on your case.
  • Contingency: A contingency arrangement means that the lawyer only gets paid if they win your case. The lawyer will typically take a percentage of any money you receive from the case.

Which type of arrangement you choose will depend on your budget and the complexity of your case. You should discuss the various options with the lawyer before deciding on a billing arrangement. It is important to note that you may be responsible for other costs in addition to the lawyer’s fees. These include filing fees, expert witness fees, and court costs. Be sure to ask the lawyer about all potential costs before deciding to hire them.

Contact Mockensturm, Ltd, Today

When it comes to taxes, ignorance is not bliss—especially if the IRS gets involved. If you are facing a tax problem, it is best to seek out the help of a qualified tax attorney. At Mockensturm, Ltd., we have years of experience helping our clients resolve their tax problems. We understand the tax code’s ins and outs and know how to negotiate with the IRS. Contact us today to schedule a consultation. We can review your case and help you determine the best course of action that will lead to tax relief.


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Mockensturm, Ltd

1119 Adams Street, Floor 1
Toledo, OH 43604