Business owners and managers spend hours filling out payroll tax paperwork for the federal government, but if it is not done properly, they can be held personally responsible. The IRS has policies for filing tax cases against owners and managers when income taxes are not withheld and are promptly sent to the IRS. An innocent oversight has the potential to cause tremendous frustration, be very costly – and can even be considered a crime!
Know Your Responsibilities
The IRS identifies small businesses as the largest source of uncollected taxes, so it focuses attention on the accuracy of payroll taxes. A failure to file, a failure to deposit, or a failure to pay can incur significant penalties – some lofty and which only increase over time as interest is added.
Your unpaid payroll taxes can be considered a crime. Additionally, any business owner who borrows against their payroll taxes is violating federal law, as the money collected from an employee’s paycheck doesn’t technically belong to the company.
Problematic payroll tax filings can result in the business owner being personally liable. In some instances, a past due amount owed can result in the IRS putting you out of business – permanently, or until the debt is settled. When you enlist the help of qualified tax and accounting professionals such as BMH Accounting, we can help you and your team reach an amicable solution that satisfies your obligation to the IRS, allowing you to hold onto your company’s finances, as well as your own.
IRS Compliance is Key
Insufficient documentation can trigger an investigation, but each business is judged individually and held to different standards. If a business does not demonstrate a “willfulness†to comply, the IRS may assume that they are intentionally evading tax payments. If the IRS feels it is being misled, it may seek to enforce greater penalties.
Individuals who are technically in authority over tax payments, but do not have that as part of the duties in their job description, still will be held responsible by the IRS. Business owners, officers, and managers can be penalized for mistakes made by bookkeepers, whether or not they were intentional.
Preparing Your Small Business for A Payroll Audit
If the IRS has requested to audit your payroll taxes, a business owner who has kept organized records will be able to provide the necessary documents to resolve any discrepancies with ease. IRS workers inspect the following documents to determine liability when penalties are being charged:
Articles of Incorporation.
Copies of Cancelled Checks to Creditors.
Interviews with each person using form 4180. You may be asked about your responsibilities and the money allocated for payroll taxes.
It’s important to understand how your payroll works when the IRS wants to audit your records. Many companies run into trouble in how they designate independent contractors versus salaried employees. Independent contractors help with the budget since they aren’t receiving paid time off, health benefits, or other perks that some ventures offer when signing on as an employee. Company owners who incorrectly account for this can be subject to penalties for the incorrect designation. A qualified accounting team can assist you with these determinations, and help determine how to amend any misclassifications.
Stop Worrying About Your Payroll Taxes – Call BMH Accounting Today!
Having a qualified accounting team to help your business manage its payroll taxes may prevent an audit which can financially cripple a business. Give the capable and qualified accountants at BMH Accounting a call for professional help to keep the IRS at a safe distance.
Wise investors know that they should conduct an independent analysis of the value of their business. Estimates must not be clouded by emotions, instead, financial professionals should perform objective analyses of relevant data, so you receive an accurate and fair valuation. Relying on buyer opinions or marketplace estimates cut short your profits when growing a business or planning to sell it.
Relevant Date for Accurate Valuation Service
With relevant data that impacts the actual worth of an enterprise, accounting professionals assure a maximum return on your investments. Sometimes hidden and overlooked assets which impact your company’s value can be discovered during the process.
There are several factors that are inspected to determine the value of your company:
Inventory of Assets – This can be used to generate revenue for small businesses. Larger businesses may use inventories to further their investments.
Comparisons – Knowing the selling price of similar companies can provide valuable insight.
Liquidation Value – This can be helpful for those looking for a quick sell.
Income Capitalization – This can give a good prediction of potential future profits based on historical data.
Income Multiple – This process uses the seller’s net income or owner benefit amount to calculate an income multiple, which can be used to negotiate the price.
Valuations are Useful for Other Assets
Valuations can also be conducted on other assets. For example, Estate Tax Discount Appraisals ensure that major tax cuts are not deducted, so both the beneficiary and the estate owner benefit. Divorce Financial Service valuations provide clear accounts of assets and income, so the right amount of spousal support is allotted.
Increase Your Knowledge for Wise Business Decisions
Thoroughly and accurately collecting valuation data helps businesses know their options for future growth and what deals are worthy of acceptance. It can also alert them to risky investments that have a growing debt or an ineffective management style that may need to be overhauled.
Excellent Financial Assistance Near Your Area in South Florida
If you think the time might be right for a valuation of your Florida business, please contact today, our dedicated team of accounting professionals at BMH Accounting to discover our wide range of business valuation and financial services. We provide trusted financial services to business owners in Boca Raton, Boynton Beach, Lake Worth, and throughout South Florida.
Many individuals and small business owners consider tax time a stressful event. However, with the help of a qualified accounting and tax professional, you can achieve organized financial records and help minimize that. Organization = optimization!
Below are a few examples of how to take advantage of the expertise of an outsourced accounting firm, so you can experience a seamless and trouble-free tax season.
Evaluate Your Needs
Are you a small business owner? A sole proprietor of an LLC? Do you or a member of your family qualify for disability tax credits? It’s important to answer these questions before sending off your tax returns to the IRS. Each lifestyle requires a different set of priorities that must be taken into consideration when planning a tax portfolio.
Gather Your Materials
Many people use computers to collect, store, and synthesize their tax data. Choose software that works for you and your needs. Consider investing in a photocopier or scanner, so you can create PDF files or hard-copy documents. It is additionally important to consider backing up your information using an external hard drive.
People who prefer using paper will need to visit their local office supply store. Purchase a large binder, dividers, folders, and a three-ring hole puncher to contain all your necessary documents in one place. If you need to itemize, create a manila folder for each category.
Categorize Your Documents
Separate your documents into filed locations that indicate their identity as well as filing status. This lets you and your tax professional find the information needed with ease.
Keep itemized deductions together by category. If you keep paper copy records, include a receipt pocket with which to store tangible evidence of your purchases.
BMH Accounting Offers Tax Organization Help Near Your Area in Boynton Beach, FL
If you’ve never organized your taxes before, enlisting accounting professionals will help make the process more efficient. The dedicated team at BMH Accounting can help you organize your financial documents and receipts, so you can take advantage of every deduction and tax break available. We help individuals and small businesses in Boynton Beach prepare and file their taxes. If you’re interested in our services, please feel free to give us a call and schedule a consultation. We look forward to hearing from you!