Five Reasons to Hire an Attorney to Deal With Payroll Tax Issues

If you own a business in Oklahoma City, you know that when it comes to the various obligations of a business owner, paying payroll taxes should be a top priority. Unpaid payroll taxes can have severe and devastating consequences for a business and its owner. Penalties on these taxes can be substantial and increase quickly. In addition, failure to pay these taxes may be considered a crime. If your business is involved in a payroll tax issue, it is important to seek the guidance of an experienced lawyer.

Why You Need a Tax Attorney

Are you wondering why you need an attorney when dealing with the Internal Revenue Service (IRS) with regard to a payroll tax problem? Following are five common reasons:

  1. Payroll taxes are considered a trust tax. Therefore, the failure to collect and pay these taxes to the IRS is considered theft. This is much more serious than a failure to pay personal income taxes.
  2. Negotiating a settlement over payroll taxes is very difficult because the IRS is not concerned about whether the business can survive.
  3. The IRS often rejects Offer in Compromise settlements for payroll tax issues because the agency assumes that the business is worth more than the tax debt that is owed. A knowledgeable advisor is needed to convey the true value of the business to the IRS. This includes considerations for economic factors and seasonal business issues.
  4. Negotiations for installment agreements will be lengthy. When a large payroll tax is owed, the taxpayer must submit complete financial records. Each point in the proposal for the installment plan must be negotiated thoroughly.
  5. A single missed payroll tax deposit can quickly snowball into multiple penalties if you are not careful. If someone is not looking out for your best interests, the IRS may continue to misapply payments, resulting in overstated payroll tax penalties that could cost you an excessive amount of money.


When it comes to payroll taxes, the IRS does not take missed payments lightly. Attempting to negotiate with the IRS without the guidance of an experienced tax attorney can be a costly mistake. We hope that you found this information helpful as you consider whether to seek the assistance of an attorney. If so, we encourage you to share it with your friends and family on Facebook.