Each year, taxes become the bane of existence for many different stakeholders in the American economy. Reconciling payments to the government is a necessary part of life, but one that imposes upon such daily lives of all Americans. In many ways, it disrupts the rhythm of people\u2019s schedules and requires exactness in recording information.<\/p>\n\n\n\n
Businesses that are unable to pay their employment taxes usually receive a notice from the IRS and a monetary penalty. If the taxes remain unpaid and the failure is determined to be willful, the IRS can place a lien on the employer’s assets or file criminal charges.<\/p>\n<\/div>\n<\/div>\n\n\n\n
First, the general labor force must work in time to either fill out tax return forms on their own or with the help of an accountant. Given the many responsibilities and time-consuming activities of life, tacking on the need to complete this important task is an annoying ordeal, to say the least. Balancing work, children, fulfilling errands, and possible commitments to extracurricular pursuits such as church, local service groups, and hobbies are put on hold as time is given to settle these numbers.<\/p>\n\n\n\n
Of course, one cannot forget those who work for the IRS. While most Americans can (and will) view these people as enemies of common interest, these workers have families too. Having to cope with the pressures of dealing with millions of stressed, unhappy people at tax time must not be the easiest job.<\/p>\n\n\n\n
Nor is it the easiest job of one of the most essential stakeholders in tax season, which would be the employers facilitating tax withholding for their employees. Some managers operate with independent contractors\u2014laborers which the IRS defines<\/a> as one holding the \u201cright to control or direct only the result of the work and not what will be done and how it will be done\u201d\u2014and thereby need not handle the tax withholding for such people. As such, being free of any strict corporate labor contract, such workers are to determine their tax payments based on their commissions from the year past.<\/p>\n\n\n\n But then there is the concern for all other regular employees, the ones on a regular payroll and duty-bound by signed legal contracts. Along with already needing to determine consistent payroll costs for these people, there comes the added responsibility of deducting money from their gross pay stubs to send to the IRS on a quarterly basis. Such payments occur in April, June, September, and December. Certainly, any employer reading this post should know that the IRS will live up to its infamously strict reputation should payments be submitted late or not at all; much is at stake for all employers who bear this heavy burden. Even more is levied upon managers, especially those in the accounting department, who must ensure that nothing goes wrong in this entire process.<\/p>\n\n\n\n Nonetheless, mistakes do happen. People are programmed to know that humans are imperfect beings. Therefore, no surprises come when such imperfections come through. This does not mean that the consequences are taken lightly, though. When it comes to flaws in payroll tax reports, the weight of such actions is significantly heavier than most regular problems in the American economy. The longer an employer goes before resolving payroll issues with the IRS, the worse things get.<\/p>\n\n\n\n This particular article does not serve as a definitive explanation of penalties relating to this issue. However, prior to proceeding on with this article, a basic overview of the IRS sanctions will be given.<\/p>\n\n\n