IRS Employment Tax Workouts

Form 941 Problems. Employment taxes can challenge any business. Each quarter, employers must generally file IRS Form 941 reporting income tax, Social Security tax, and Medicare tax withheld from employee’s paychecks, and paying the employer’s portion of Social Security or Medicare taxes. Yet Form 941 is complex, and the IRS information interpreting Form 941 is technical and voluminous. Employers can easily make Form 941 errors. They can also easily find themselves confused by the tax rules and short on the taxes that they should have paid, around issues including:

  • whether to file Form 940, Form 941, or Form 944;
  • whom to count as an employee;
  • what to count as employee compensation;
  • calculation of withholding;
  • taxable Social Security wages and tips;
  • taxable Medicare wages and tips;
  • qualified sick leave and family leave wages;
  • sick pay and life insurance adjustments;
  • small business tax credits for increased research;
  • nonrefundable credits; and
  • calculation of deposits and advances.

IRS Notice of Deficiency. When an employer does not pay the employment taxes that the IRS believes they should have paid, the IRS will issue the employer a notice of deficiency. Deficiency notices can both confuse and scare employers. Confusion arises because while the notice of deficiency generally tells the employer the tax that the IRS believes the employer owes, the notice generally does not tell the employer where the employer allegedly erred in its Form 941 calculation. Fear arises because the notice warns of penalties, interest, and levies. The IRS wants the employer’s money, but the employer may have paid all due taxes, may not owe the claimed additional amounts, or may not have the additional amount to pay. 

Form 941 Answers. The experienced, cordial, and effective IRS Enrolled Agents at Highland Tax Group help employers facing employment-tax problems. The problem may be that the employer does not understand the employment-tax rules, does not understand Form 941, or faces a deficiency notice that the employer does not understand and is unable to pay. No matter the employment-tax problem, the IRS Enrolled Agents at Highland Tax Group have solutions. Highland Tax Group helps employers with IRS employment-tax workouts, including:

  • collecting and analyzing payroll records to determine tax obligations;
  • preparing IRS forms and correspondence and conducting IRS conferences;
  • proving that the employer does not owe the tax or owes less than claimed;
  • challenging and appealing the deficiency notice to win its reversal; and
  • negotiating an offer in compromise or installment payment plan.

Leave the IRS calls, correspondence, and conferences, and other hard work of straightening out Form 941 problems, to the skilled IRS Enrolled Agents at Highland Tax Group. Our prompt, thorough, and efficient tax services give clients good reasons to believe in us. Contact us now online or toll-free at 888-738-8182

What's Troubling you?

  • This field is for validation purposes and should be left unchanged.