California Employment Tax Representation
The economic downturn has caused employers to try and drastically reduce their operating costs. Businesses across the country are hiring independent contractors as opposed to employees to avoid paying workers’ compensation insurance, payroll taxes, and employee benefits. Employers working with independent contractors can also be attempting to avoid being hit with wrongful termination claims, questioning why they did not previously consider experienced California employment tax representation.
I am David W. Klasing, a tax attorney with more than 20 years of experience. My legal team and I am committed to preserving your best interests in worker classification audits and against allegations that you owe payroll taxes. Whether you have concerns about corporate tax liability or employment tax, contact my law firm today to schedule a consultation at my law office in Los Angeles, Irvine, or San Diego, California.
Misclassifying Employees as Independent Contractors
If you are a business owner accused of misclassifying employees as independent contractors, obtain experienced employment tax representation. The tax ramifications for misclassifying independent contractors are serious enough to threaten your very ability to continue operating. Your personal assets could also be at risk where the corporate veil could be pierced over payroll and other employment-related obligations.
When you select the Tax Law Offices of David W. Klasing, my legal team and I will take every measure possible to protect your company from back taxes and penalties for misclassifications on employment tax. We have an extensive background handling worker classification audits and know how to preserve your interests with minimal tax and legal implications.
Delinquent Payroll Taxes and Trust Fund Recovery Penalty
A payroll tax is a tax that is withheld from an employee’s wage that is in turn paid to the state or to the federal government. The employer effectively acts like a trustee of those funds for the government. The withheld amount is called “trust fund taxes” since it is deemed to be held in trust to the government. IRC § 6672. For this reason, the IRS is particularly aggressive in pursuing payroll tax violations; in practice, it is often more aggressive than pursuing personal income tax violations.
A mistake made in withholding or paying one’s payroll taxes may result in a monetary penalty, but if the IRS is convinced the act was done “willfully”, it will pursue criminal prosecution — which may result in more serious consequences.
Protecting Employers from Personal Liability
If you are a shareholder, business owner or an investor, you could be under investigation by the IRS if your company missed payroll taxes, failed reporting its withholdings or are facing charges of payroll tax fraud. Obtain experienced legal counsel from a highly skilled Los Angeles employment tax lawyer. The IRS will not only go after your company but could also pursue action against you personally. My legal team and I are committed to protecting you from any financial and legal ramifications.
Contact Our Employment Tax Lawyers Today
Whether you have corporate tax and employment tax concerns, contact my law office for a reduced-rate initial consultation with experienced employment tax representation in Irvine, Orange County, or Los Angeles. My legal team and I are committed to helping you obtain a fresh financial start.