Washington, D.C., Area 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. While many businesses handle employment tax requirements with ease, almost any kind of business can run into tax problems. This is especially true when there has been a change of staff or financial difficulties within the company. We assist with all types of tax problems, including issues related to compensation of owners, the filing of reporting documents, and fringe benefits.
Another business challenge that can lead to employment tax issues relates to the type of employees a company hires. Businesses that employ seasonal labor, immigrant workers, and contract workers are often more susceptible to employment tax difficulties.
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At the law offices of Kundra & Associates, our employment tax attorneys provide sound legal advice and solid representation for business clients. We represent businesses in Maryland, Virginia, Washington, D.C., across the country and around the world as well as international companies doing business in and with 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. Contact our Rockville, Maryland, law office to schedule a consultation.
Paying Taxes: An employer must collect and remit federal and state income withholding taxes, Medicare tax, Social Security tax, and unemployment tax on behalf of its employees. 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 personal liability for unpaid taxes. Our goal is to achieve a global resolution for all affected parties.
Worker Identification Numbers: The federal government aggressively pursues businesses who fail to obtain and maintain proper individual tax identification numbers (ITIN) for every worker. If the IRS conducts an audit and finds that an accurate ITIN has not been provided, they will impose heavy fines on the employer. In such cases, they will assess first and ask questions later.
Unlike other types of tax, the IRS will also begin forced collection swiftly. Hence, it is imperative that a business is vigilant. 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 us know if we can assist should you 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 not be worth the end costs.
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 local government may have stricter rules. If you are unsure if you have properly classified a worker, an employment tax attorney at Kundra & Associates is able to assist.
If you have misclassified an employee as a contractor, your business faces significant financial risk of IRS penalties and associated tax liabilities, including liens and levies against your business for unpaid taxes for incorrect classification as well as potential personal exposure for taxes not paid.
Recently, the IRS announced its Voluntary Classification Settlement Program — call us today to see if it would be in your best interest to participate.
Washington, D.C., Area Employment Tax Lawyers
The tax defense lawyers at Kundra & Associates work to protect your interests with skillful and aggressive defense strategies. We may be able to prevent seizure of your assets and secure releases of federal and state tax liens. We negotiate with the IRS and state authorities to reduce penalties, related interest, and other potential fines.
Whether you have questions about corporate tax liabilities for employment taxes, are facing an investigation, or you have been fined by a tax authority for failure to collect and remit employment taxes, contact a Maryland employment tax audit attorney at Kundra & Associates.