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New IRS Program May Help Control Payroll Tax Challenges

taxesIt’s not every day that we get to mention something positive that the IRS is rolling out on behalf of small businesses, but its newest program may just qualify.

Keeping up with payroll tax payments can be a headache for any small business, especially if you’ve ever fallen behind and made a late payment. Before long, the extra penalties and interest charges from the IRS can multiply, making it more difficult to stay on top of payments. The collateral effect? Suddenly, that important piece of equipment you planned on buying has to be delayed for a little while as you catch up on tax payments. To make matters worse, the IRS has never been the most proactive government agency, at times waiting until small business owners are facing the most dire financial circumstances to offer assistance.

Fortunately, the IRS’ new Early Interaction Initiative may offer a breath of fresh air for many small businesses concerned with payroll tax challenges. The effort aims to identify businesses that are falling behind on tax payments much earlier in the process. Through automatic alerts, the IRS can be notified before an employment tax return is filed and get involved to offer advice that may help the business get back on track for making payments. This could come in the form of a letter, automated phone message or possibly a visit from an IRS officer.

While the idea of a visit from the IRS may not be the most appealing thought right now, neither is the scenario of mounting tax liabilities. Some early interaction now through the Early Interaction Initiative may provide a plan that’s manageable and a solution that’s easier to envision. That way, you can focus on investing funds in the things that move your business forward – instead of constantly playing catch up.

Dani Nichols

I started out with NAPCO in 1996, shortly after it was purchased by Steve Coven. Both Steve and I shared a vision of growth for NAPCO. Always hungry for knowledge, I learned whatever I needed including sales, marketing, web development, operations management, HR, building and retaining a customer base. Whew! It has been a lot of fun because in the end, I really like working with our customers. They make it all worthwhile for me.

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