Seasoned Employment Tax Attorneys

Meeting the requirements of the IRS and state taxing authorities is an essential part of operating a business in the U.S. Almost any kind of business can run into tax problems. This is especially true when there have been changes in operations, staff or financial difficulties within the company. We assist with all types of tax problems, including issues related to the non-filing or payment of employment taxes, compensation of owners, the filing of information reporting documents and fringe benefits.

Another business challenge that can lead to employment tax issues relates to the type of employees a company hires. For instance, businesses that employ seasonal labor, immigrant workers and contract workers are often more susceptible to employment tax difficulties.

At the law offices of Kundra & Associates, our employment tax lawyers provide sound legal advice and solid representation for business clients. We represent businesses in Maryland, Virginia, Washington, D.C., across the country, around the world and international companies doing business in the U.S.

If you have a question about how to meet your legal obligations regarding employment taxes, or if you are facing an employment tax audit, we are happy to assist.

Call our tax attorneys at 301-637-8130 to schedule a meeting to discuss your situation.

Federal And State Employment Tax Considerations

Paying taxes — An employer must collect and remit federal and state withholding taxes, Medicare tax and Social Security tax on behalf of its employees. It must also remit federal and state unemployment taxes, as well as match the federal employee portion of FICA and Medicare. Failure to do so in a proper and timely manner can result in heavy fines and tax assessments. The business owner, business management and other responsible parties could be exposed to a personal liability for such unpaid taxes as well. Our goal is to achieve a global resolution for all affected parties.

Worker identification numbers — The federal government aggressively pursues businesses that fail to obtain and maintain proper Individual Taxpayer Identification Number (ITIN) for every worker. If the IRS conducts an audit and finds that an accurate ITIN has not been provided and sought, it will impose heavy fines on the employer. In such cases, the IRS will assess first and ask questions later.

Unlike other types of tax, the IRS will also begin forced collection swiftly. It is critical for businesses to have proper procedures in place to collect and store this information so they are readily able to respond to an IRS or state tax department inquiry. Let the lawyers at Kundra & Associates know if you may be facing this problem now or in the future. The associated fines are heavy and liens are placed quickly.

Classification of employees — The employment tax requirements for a regular employee differ from those of a contract worker. Independent contractors are responsible for paying their own taxes. The employer does not need to pay Social Security, Medicare or unemployment tax on their behalf. While cheaper in the short run, misclassification may be more costly in the end.

It can be difficult to determine how an employee should be classified. While the federal government has set out a three-factor test to determine who is a contractor, your state/local government may have stricter rules. If you are unsure if you have properly classified a worker, our employment tax attorneys are able to assist.

Under examination, the IRS is clear on its elements and impact. It is at this initial stage where your tax attorney can assist in convincing the government of your position and your right to safe harbor treatment. It is at the appellate level that your tax attorney can negotiate much smaller penalties and related interest. It is at the tax/federal district court level your tax attorney can assist in protecting your company from scrutiny for future tax years.

If you have misclassified an employee as a contractor, your business faces a significant financial risk of IRS penalties and associated tax liabilities. These include liens and levies and even the seizure of your business for unpaid taxes related to the incorrect classification, as well as potential personal exposure for taxes not paid. The IRS Voluntary Classification Settlement Program is still open and may be a viable option to consider. If you are looking to sell your business or are otherwise interested in getting "right" with the government, we can discuss this among other available options.

Working To Protect Your Interests

Our lawyers will work hard to protect our clients' interests with skillful and aggressive defense strategies. We are often able to prevent seizures of assets and secure releases of federal and state tax liens. We negotiate with the IRS and state authorities to reduce taxes owed and penalties and interest, as well as other potential fines.

Let Us Assist You With Your Employment Tax Concerns

Whether you have questions about corporate tax liabilities for employment and unemployment tax, are facing an investigation, or have been fined by a tax authority for failure to collect and remit employment taxes, we are able to help. Contact our employment tax attorneys online or call 301-637-8130 to schedule an initial consultation. We serve clients internationally and nationally, inclusive of Maryland, Virginia and Washington, D.C.