Most tax accountants are competent, but mistakes happen — and when they do, you risk getting into trouble with the IRS. Your problems could prove particularly worrisome if they involve payroll taxes, as you can be held personally liable. The sooner you seek damage control, the better. This will likely take the form of additional IRS paperwork.
Review All Returns
Take the time to examine your accountant’s work before you sign anything. This could save you a major headache down the road — especially if you a spot a mistake early on. Point out any discrepancies you observe and ask for an explanation, or better yet, a swift correction.
Also known as the Adjusted Employer’s Quarterly Federal Tax Return, Form 941-X allows you to alert the IRS to over or underreporting — and initiate the adjustment process. Be sure to highlight both the amount originally reported and the correct figures.
Depending on your situation, you can withhold less or more from your employees to arrive at the correct amount. Otherwise, you may be able to obtain a refund from the IRS.
Consider Informing the IRS
Based on the scope of the error, it may be in your best interest to reach out to the IRS and highlight any discrepancies you’ve observed. This won’t eliminate the need to cover unpaid employment taxes, but your payroll service or accountant could potentially be held accountable. This approach is particularly essential if you suspect that your payroll service withheld taxes but failed to forward them appropriately.
No matter who deserves the blame for your current payroll tax issues, you can benefit from the assistance of a trusted tax resolution service. Contact the team at the Highland Tax Group today to learn more about your options.