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Running a business in Missouri involves much more than serving customers and managing operations. It also means staying on top of your tax obligations. Missing a filing, underpaying payroll taxes, or relying on the wrong advice can lead to serious consequences, both financially and legally. In this article, we discuss…
- How often to review tax filings to avoid trouble with the IRS.
- How to verify all tax payments and deposits.
- When to meet with a tax attorney as a small business owner.
How Often Should Missouri Businesses Review Their Tax Filings To Avoid IRS Problems?
Missouri businesses should file and pay taxes on time, every time, especially when it comes to payroll taxes. But timing varies based on payroll size. Some businesses must deposit payroll taxes every pay period, while others do so monthly.
The safest strategy? Submit your payroll tax payments at the same time you issue paychecks. Doing so helps avoid spending the funds elsewhere, an all-too-common problem among small businesses with tight margins.
Also important: If you’re a sole proprietor, the IRS may hold you personally liable for payroll taxes. Even if your business is incorporated, the IRS can pursue personal assets for a portion of the tax debt through the Trust Fund Recovery Penalty, especially if you’re deemed a “responsible party” who should have ensured the taxes were paid.
To protect yourself, always pay payroll taxes when due and prioritize the civil penalty portion first, since that directly affects your personal liability.
What Types Of Internal Audits Should Business Owners Conduct Each Quarter To Stay Tax Compliant?
Quarterly internal audits can help prevent costly mistakes, but many business owners don’t have the training to conduct them effectively. The most reliable approach? Hire a reputable CPA to handle your payroll tax filings and compliance. Review your tax activity quarterly with them, ensuring all deposits and filings are accurate and timely. Trying to save money by doing it yourself often results in more expensive consequences down the road.
Lance Drury, founder of The Law Office of Lance R. Drury in Missouri, is a trusted advocate for business owners facing tax issues, from missed filings to complex payroll tax disputes. With years of experience in tax resolution, Mr. Drury has helped countless clients avoid audits, penalties, and personal liability under the Trust Fund Recovery Penalty. His proactive, hands-on approach empowers business owners to stay compliant and protect both their companies and personal assets.
If you’ve received a tax notice or want to avoid getting one, reach out to Lance Drury today for strategic, preventative guidance.
What Is The Trust Fund Recovery Penalty, And How Can Employers Avoid It?
The Trust Fund Recovery Penalty (TFRP) allows the IRS to hold business owners personally liable for unpaid payroll taxes. It applies to the portion of payroll taxes withheld from employees’ paychecks, typically 50%–60% of the total payroll tax liability. If the IRS believes you’re a “responsible party” who knew or should have known that taxes weren’t being paid, they can pursue your personal assets.
The Trust Fund Recovery Penalty (TFRP) allows the IRS to hold business owners personally liable for unpaid payroll taxes. It applies to the portion of payroll taxes withheld from employees’ paychecks, typically 50%–60% of the total payroll tax liability. If the IRS believes you’re a “responsible party” who knew or should have known that taxes weren’t being paid, they can pursue your personal assets.
How Often Should Business Owners Meet With A Tax Attorney Or CPA To Avoid Future Tax Issues?
Business owners should stay in ongoing contact with their CPA to ensure all filings and payments are made correctly and on schedule. Don’t rely on memory, guesswork, or the idea that you’ll catch up later.
For day-to-day compliance, your CPA is your go-to, but if any tax problems arise, consult a tax resolution attorney immediately. Preventive care is always more affordable and less stressful than reactive crisis management.
How Do I Verify All Required Tax Payments And Deposits?
To check your tax payments for the IRS, you can access detailed records online through IRS systems or with professional software used by tax attorneys.
For the State of Missouri, it’s a little more difficult. There’s no centralized online system, and most inquiries require calling the Department of Revenue, a process that can involve long wait times.
Key advice:
- Keep your own documentation up to date.
- Always request or save copies of W-2s and pay records.
If you’re behind on filing, tracking down old state withholding data can be nearly impossible, especially if your employer is out of business.
When Should I Bring In A Tax Resolution Attorney Proactively?
As soon as you receive a letter from the IRS or the Missouri Department of Revenue, contact a qualified tax resolution attorney. Here’s why:
A tax attorney who focuses on planning, such as estate or corporate tax work, may not know how to handle aggressive collection tactics or levies. Accountants are excellent with numbers but may offer poor advice when dealing with IRS negotiation or state tax defense simply because they lack day-to-day experience. Laws and processes change constantly, especially since COVID. A dedicated tax resolution professional spends dozens of hours each year staying up to date with evolving IRS protocols and state rules.
Don’t wait until a levy hits or penalties start piling up. Early intervention almost always leads to better outcomes.
Still Have Questions? Ready To Get Started?
For more information on business tax checklists for Missouri, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (314) 260-6120 today.
Lance Drury, founder of The Law Office of Lance R. Drury in Missouri, is a trusted advocate for business owners facing tax issues, from missed filings to complex payroll tax disputes. With years of experience in tax resolution, Mr. Drury has helped countless clients avoid audits, penalties, and personal liability under the Trust Fund Recovery Penalty. His proactive, hands-on approach empowers business owners to stay compliant and protect both their companies and personal assets.
If you’ve received a tax notice or want to avoid getting one, reach out to Lance Drury today for strategic, preventative guidance.
