As hard as we might try, mistakes happen and that’s where California employment tax problems arise. Understanding the most common of these is a good way to head off any problems off before they become an IRS issue.
That said, here’s a few of the more common ones.
Penalties for Inaccurate Statements
If you underpay on your taxes, the chances are the IRS will levy a penalty your way. One of the most common mishaps here is where a small business or sole proprietor fails to mention income. Another common mistake that can wind you up in trouble with the IRS is not reporting the sale of the house.
Inflated Business Expenses
Although there’s a common misconception that businesses inflate their expenses, the ones the IRS catches are usually mistakes. One of the problems here is keeping bad records. If you are a small business that can’t keep up with expansion or fall short of the mark when it comes to keeping good records, there are some online solutions.
Your California tax problems will disappear if you take the extra time to hire professionals who are accredited and have experience in your industry. Keep in mind that we have an accredited tax team that can help you with any and all of your California employment tax problems. Our tax experts work in a variety of different business verticals.
We like to think of ourselves as your trusted partner. Tax compliance is one of the cornerstones of our business. We can help you prepare your records and documentation so the IRS gets everything it needs.
Not Reporting all of Your Gross Income
Most of the ways that you can get in trouble with your tax reporting are all about a simple lack of due diligence. Failure to report wages and court settlements were at the top of the list of the miscalculations the IRS caught.
Once again, it’s in your best interest to have a professional on your side. Someone like us who has experience can make sure that you don’t fall into any of these pratfalls.
However, there are a few things that can’t be passed off as simple mistakes. Not filing your taxes is one sure-fire way to get caught by the government and have heavy penalties levied on you. If you’ve got any questions about these or other Los Angeles employment tax problems, get in touch today.