WE PROVIDE A WIDE RANGE OF LEGAL SERVICES
Below is a list of several of the trusted legal services offered by our offices.
Our lawyers will also represent you in civil litigation cases such as divorce, child and spouse maintenance.
Payroll Tax Matters
When you run a business and employ workers, you are responsible for handling payroll taxes. You need to deduct your employees’ taxes from their salaries and pay them to the IRS in their name. At the same time, there are proportionate amount of taxes you need to pay as a business for each of your employees. Any delay or failure to pay due taxes will introduce interest and penalties which will grow over time. The IRS is more strict with companies than it is with individuals. It may take time before the agency knocks on the door. But eventually, they will and the business will have to face a heavy financial burden.
THE IRS HOLDS BUSINESSES TO A HIGHER STANDARD
Indeed, while some individuals may get away with small tax misdemeanors, businesses almost never get such a chance. The IRS chases payroll taxes much more aggressively.
Companies are required to collect the appropriate amount of taxes from their employees and hold them in a Trust Fund.
These include:
- Federal and state income taxes
- Social Security
- Medicare
- Unemployment taxes
- Local taxes (city, county tax; disability tax, etc)
- Employer’s share of all appropriate workers’ taxes
Businesses need to make quarterly payments to the IRS and submit a number of reports and forms throughout the year to account payroll taxes. Procedures for businesses are more complex and they are required to provide a lot more information than individuals.
At the same time, the IRS is more strict and rarely provides the benefit of doubt. When a company doesn’t submit the proper financial statements during the expected window, the IRS will initiate a series of letters and notices. The business will be given the chance to comply voluntarily.
Even if you’re behind on your taxes, we strongly advise to heed the warnings of the IRS and make at least partial payments. This will prove to the agency that you don’t intend to avoid your taxes, just experience financial problems. The interest and fines for delayed payments are considerably smaller than those that follow failure to pay.
CONSEQUENCES OF NOT PAYING PAYROLL TAXES
Ignoring the IRS will result in a financial penalty and interest over the owed taxes. Due taxes are owed forever and interest runs indefinitely. So, it’s easy for small payroll tax problems to snowball and outgrow the original tax that was owed.
Payroll tax penalties include:
- Failure to prepare correct W-2 forms and file them by the end of January – fine of $50 for each missing or incorrect document.
- Failure to submit appropriate tax forms, like Form 941 – fine of up to 15% for delays upwards of 16 days.
- Failure to pay payroll taxes when due (Trust Fund Recovery Penalty) – fine of 100% on top of all unpaid taxes.
Eventually, the IRS will stop sending letters and proceed to impose liens and levies on the company’s assets. Liens can prevent you from accessing financial services. Levies will forcibly collect your financial assets, business equipment, and company fleet in order to cover your debt.
Any hardship that caused the business to neglect payroll taxes will grow even worse. Forced collections can disrupt your day to day operations, cause cash flow problems and even prevent you from offering your products or services. If your company has evaded paying payroll taxes for too long or has committed crimes, the IRS can put you out of business.
At this stage, you need to negotiate with the IRS and explore solutions that allow you to make payments and keep enough capital to remain operational.
We recommend consulting a licensed tax attorney before speaking to the IRS. A tax attorney will evaluate your case and hopefully propose a solution to some of the charges.
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We Can Help You
Tax Law
Elder Law & Estate Planning
High Dollar Cases
High profile taxpayers, like sports stars and performers, are the IRS’ way of making an example. Every IRS branch has specially trained Revenue Officers who handle high dollar cases separately.
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Tax Audit Defense
Our tax services include audit defense, IRS appeals, unfiled tax returns, CID investigations, enforced collections – liens, levies and more.
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Payroll Tax Matters
When you run a business and employ workers, you are responsible for handling payroll taxes. You need to deduct your employees’ taxes from their salaries and pay them to the IRS in their name.
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Unfiled Tax Returns
April 1st is a dreaded day for any taxpayer. Just half of all taxpayers manage to prepare their tax returns and file them with the IRS prior to the deadline. The rest usually follow with a couple of weeks delay. Weeks sometimes turn into months and even years.
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IRS Tax Appeals
IRS' Office of Appeals will review your case and provide an independent judgment, often softening the decision of the IRS.
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Elder Law
Elder law is the area of legal practice that encompasses all activities related to planning for a senior’s elder years.
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Medicaid Planning
Medicaid planning – when done properly – allows seniors to preserve their life savings and qualify for Medicaid.
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Estate Planning
Proper estate planning is crucial in order to ensure your assets and most valuable property is protected and managed in the most cost-effective way.
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Probate Law
Probate is a court controlled mechanism where the court transfers assets from someone who died (decedent) to the decedent’s beneficiaries. The beneficiaries are those listed in the decedent’s Will. When the decedent dies with a Will we refer to this as the decedent dying testate.
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Trust Creation and Administration
Estate Planning: Trusts allow you to bypass expensive Probate procedures, maintain the integrity of your assets and secure better future for your heirs. Daily, Montfort & Toups create efficient Estate Planning solutions and Trusts are one of our best tools!
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WHAT OUR CLIENTS SAY
ABOUT OUR SERVICES
I’ve had the pleasure to work with Mr. Daily for over 20 years, and he has always found the time to counsel and explain the best course of action.
JG | Tax Law Assistance And Counsel
Mr. Daily helped me get out of a tax situation that could have forced the dissolution of my business and ruined my credit.
Anonymous | Representation And Defense In Front Of The IRS
Fred assisted us through a multi year audit with ease and professionalism. His guidance was excellent and it was obvious he knew exactly how to handle the IRS
Richard | Multiyear Tax Audit Defense
I’ve had the pleasure to work with Mr. Daily for over 20 years, and he has always found the time to counsel and explain the best course of action.
JG | Tax Law Assistance And Counsel
Mr. Daily helped me get out of a tax situation that could have forced the dissolution of my business and ruined my credit.
Anonymous | Representation And Defense In Front Of The IRS
Fred assisted us through a multi year audit with ease and professionalism. His guidance was excellent and it was obvious he knew exactly how to handle the IRS
Richard | Multiyear Tax Audit Defense