Sacramento Employment Tax and Sales Tax Audit Lawyer
Business owners in Sacramento are fortunate to be located within a hub of economic activity. Sacramento is the capital of the state of California and its population of nearly 500,000 citizens makes the city the sixth largest in California. The entire Sacramento metro-area includes nearly 2.5 million residents making the area the fourth largest metropolitan area in California.
Today, the top employers in the area are governmental in nature. However there are many private businesses across an array of industries that call Sacramento home. Some of the largest employers in the area include Intel, Kaiser Permanente, Sutter Health, and Dignity Health. Furthermore, there is a thriving tourism industry in Old Sacramento, a bustling theater arts district and numerous museums, and it is a nationally recognized pioneer in the farm-to-table movement. As such, many small businesses also have made Sacramento their home.
Unfortunately, some business owners – often those owning small to mid-sized companies – come to believe that shirking one’s tax duties is a relatively risk-free means of balancing the books or padding profits. While such action may bring momentarily relief, the failure to satisfy employment tax or sales tax duties typically results in tax issues significantly worse than whatever motivated the initial noncompliance. Penalties can include the imposition of significant monetary penalties or even the loss of one’s freedom through a federal prison sentence. The experienced tax lawyers of the NewPoint Law Group, LLP, can provide trusted guidance so that business owners can avoid tax compliance issues. If you have already been contacted by the IRS or California state taxing agency, we can engage in the audit process to protect your business from a potential worst-case scenario. To schedule a free and confidential initial consultation call 800-358-0305 or contact us online today.
Tax Attorneys Handle California Sales Tax Audits and Issues
The United States has not yet enacted a national sales tax, but most states have enacted a sales tax. In California, as in most states, business owners and retailers have an obligation to account for, collect, and pay over sales tax to the state tax authority. In California, sales tax and use tax is administered by the Board of Equalization. The tax rate in California is set at a base rate of 6.5% for the entire state. However, a local tax of 1% is required by state law and cities and other areas are free to impose their own tax. Thus, the final tax rate paid by consumers will vary throughout the state. For instance, in Sacramento the sales tax rate is 8.5% but in the incorporated city of Roseville the rate of sales tax is set at 7.5%. In Ryde (Walnut Grove area), located in Sacramento County, the sales tax rate is 8%.
Business owners in California will face a sales tax audit administered by California BOE at some point. The agents will employ a number of tests and practices to ensure that your business is paying the appropriate amount of sales tax. Businesses that fail to satisfy this obligation can face particularly serious consequences. If the sales tax evasion was aided by a “zapper” device, criminal penalties can apply.
Business Owners Must Satisfy State and Federal Employment Tax Obligations
Businesses also have an obligation to account for, collect and pay over state and federal employment taxes. In California, employment taxes are administered by the Employment Development Division. Federal payroll tax is administered by the IRS. Taxpayers who fail to satisfy this obligation can face significant penalties. In the case of a business owner who willfully fails to satisfy his or her federal payroll tax obligations, Sec. 6672(a) of the U.S. Tax Code permits the imposition of particularly harsh penalties. Under the Section the IRS is allowed to pierce the corporate veil and can impose personal liability against any person who is responsible for the employment tax compliance failure. This can mean business owners, accountants, and others can have business liabilities imposed against their personal finances regardless of the form of the business entity. The IRS aggressively pursues businesses that fail to satisfy this obligation.
Rely on Our Tax Experience for Employment and Sales Tax Audits and Issues in Sacramento
If your business has concerns over its past handling of payroll tax or sales tax obligations, the experienced tax lawyers of the NewPoint Law Group, LLP, can provide on-point guidance. If your company is already facing an IRS audit, a California EDD audit, or a California BOE audit we can work to protect your business from the full extent of potential consequences. To schedule a confidential employment tax or payroll tax consultation call 800-358-0305 or contact us online today.