Avvo Rating 10.0

IRS Employment and Business Tax Collection and Audits

If you own a business—small, medium, or large—you must be very familiar with laws that require the business to withhold from the paychecks of employees and certain independent contractors, specific amounts for Social Security, Medicare, and Income tax. Although the percentage has fluctuated in recent years, presently the employer must withhold 15.3% of an employee’s pay for Social Security and Medicare tax. Of this amount, half is the employer’s contribution to those funds, and half is the employee’s portion. Depending on the size of the business, these amounts must be paid to the IRS daily, weekly, monthly, quarterly, or annually, through the filing of various employment-tax forms and electronic payments.

The IRS quickly realizes when a business is falling behind on its employment-tax deposits, and usually contacts the employer within 6 months of a discrepancy. In fact, the IRS recently started an initiative to reach out to employers solely for the purpose of encouraging them to make timely deposits, because the penalties for not making those deposits are steep. Further, there are at least three different kinds of penalties related to employment taxes: failure to deposit, failure to file a return, and failure to pay the tax. Frequently, businesses unable to make timely deposits end up going out of business.

David A. Sprecace has more than 23 years of experience helping businesses through difficult times with regard to employment taxes. Call 303-454-8260 or email Dave at Dave@MyTaxLex.com to set up a phone consultation.


Colorado Office
600 17th St #2800s

Denver, CO 80202

Client Reviews

Dave has ridden to our rescue on many occasions. It’s not that I try to get in trouble but Dave is always there to bail me out. Dave went toe-to-toe with the IRS over a several year legal battle. Nothing like having a...

- Russell and Lisa P.

My business partner and I hired Dave to represent us with an IRS tax audit of our company and individual tax returns. There were other family members and other businesses involved, and the IRS initially wanted more than...

- Mark M.

I called Dave to help me file several years of income tax returns. After the returns were filed, Dave filed an Offer in Compromise to get rid of the old taxes. The IRS accepted a small fraction of the original amount...

- Mike W.

When I needed to buy out my business partner, Dave told me of the possible pitfalls with the Operating Agreement, walked me through the entire process, helped me value the company, and make an offer. I was able to keep...

- Yvonne A.

Contact Us

Fill out the contact form or call us at (303) 454-8260 to schedule your consultation.

Leave Us a Message