Experienced Glendale Employment Tax Lawyers Ready To Serve You
As a Glendale business owner, you know your business better than anyone else, and keeping your focus on running the business is paramount. Any distractions divert your attention away from the business, potentially hurting your bottom line. When an employment tax issue suddenly arises, you must decide whether you want to handle the matter on your own or bring in a professional. It may be tempting for Glendale business owners to tackle tax issues themselves. However, when dealing with issues that fall outside your specialization, you can unnecessarily jeopardize your business.
At the Glendale business tax law firm of Kaczmarek & Jojola PLLC, we are here to help Glendale business owners deal with their complex employment tax issues so they can focus on the day-to-day operations that keep their business profitable. We respect the fact that you are most familiar with your business. When you choose to work with us, we listen first and only offer our advice and guidance after we have a full understanding of your business and the issues it faces. With our help, you can avoid the common pitfalls many business owners fall victim to when dealing with the IRS on their own.
Helping Glendale Businesses Deal with Unpaid Taxes
While the IRS reviews and audits both individual and business tax returns, the IRS subjects businesses to additional scrutiny. In fact, the IRS audits businesses at nearly twice the rate it audits individual taxpayers. Thus, it is crucial that businesses stay in compliance.
Of course, honest mistakes happen. Whether due to an oversight, miscalculation, or misunderstanding of the relevant tax laws, Glendale employment taxes can have serious consequences. For example, they can result in the seizure of organizational assets, the closure of a business, or even criminal charges. At Kaczmarek & Jojola PLLC, we help Glendale business owners with all aspects of the employment tax. Whether it is helping you dispute an IRS tax assessment or helping you stay in compliance, we offer thoughtful advice and—when necessary—aggressive litigation support.
Misclassification of Employees
Over the past decade, the number of Glendale businesses using independent contractors dramatically increased. By classifying workers as independent contractors rather than employees, an employer saves significant amounts in employee benefits and payroll taxes. However, the IRS caught on to this recent trend and is escalating its enforcement accordingly.
The IRS has strict rules regarding whether to classify a worker as an employee or an independent contractor. According to the IRS, a worker is an independent contractor if the employer “has the right to control or direct only the result of the work and not what will be done and how it will be done.” The less freedom a worker has to complete a job, the more likely the IRS considers them an employee.
When the IRS identifies a company misclassifying employees as independent contractors, it can assess employment tax penalties, including:
- A penalty of $50 for each misclassified employee;
- A penalty equal to 1.5% of the employee’s federal income tax liability; and
- A penalty equivalent to 40% of the Social Security and Medicare taxes that the employer should have withheld from the employee’s paychecks.
At Kaczmarek & Jojola PLLC, our dedicated team of Glendale employment tax attorneys commands an in-depth knowledge of all IRS rules and regulations pertaining to the classification of workers by Glendale employers. We can help your business defend against IRS penalties by creating a compelling case that you properly designated workers as independent contractors.
Trust Fund Recovery Penalties
The trust fund recovery penalty is an IRS penalty assessed against Glendale business owners or others in an organization who willfully fails to collect, pay, or deposit trust fund taxes. These taxes include Social Security tax, Medicare tax, and personal income tax. Unlike with other IRS penalties, business owners may face personal responsibility for paying a trust fund recovery penalty.
However, the IRS will only impose a trust fund recovery penalty against someone who
- Is responsible for the collection and payment of trust fund taxes, and
- Willfully fails to collect or pay the taxes.
Thus, there are several viable defenses to the trust fund recovery penalty. At Kaczmarek & Jojola PLLC, our knowledgeable Glendale employment tax lawyer works closely with Glendale business owners and others within an organization to successfully defend against trust fund recovery penalties.
Reach out to a Dedicated Glendale Employment Tax Attorney for Assistance with Your Business Tax Issues
Our trusted legal team also handles other types of tax issues, including:
If you recently found out that your Glendale business owes back taxes, will be subject to an audit, or is under investigation for the misclassification of employees or a trust fund recovery penalty, the Glendale employment tax lawyers at Kaczmarek & Jojola PLLC can help. As former IRS trial attorneys, we command an in-depth knowledge of how the IRS handles business tax issues. We put this knowledge to use in each of our clients’ cases. With Kaczmarek & Jojola PLLC on your team, you can rest assured that your business is in capable hands. To learn more and to schedule a consultation with one of our Glendale employment taxation lawyers, give us a call or contact us through our online form.