Business Tax Attorneys in Bethesda, Maryland
JDKatz provides the gamut of business tax services. Our firm works closely with clients from all business verticals and collaborates with CPAs and other financial experts to best serve clients in Maryland and Washington, D.C. For decades, JDKatz has served the tax needs of small to midsized businesses and large corporations. If you are interested in knowing more about our firm or to speak about your legal needs regarding tax law, contact JDKatz for a consultation.
Our legal services
Whether you are a budding business or an established corporation, the need for a business tax attorney is paramount. Our business tax planning and tax law services include:
- Federal tax planning
- Tax structuring, restructuring, and buying or selling a business
- State & local tax planning, including nexus, combined vs. separate reporting, sourcing of income, allocation, and apportionment
- Real estate tax structuring and planning for real estate investment
- Consulting regarding compensation issues for businesses
- Preparation of analysis related to complex corporate tax issues
- Audit and litigation representation with federal, state, and local jurisdictions
- International business tax needs
Employer Withholding Corrections | Avoiding tax evasion penalties
What is an IRS Form 941-X, and why is it useful in a TFRP assessment process?
An IRS Form 941 is used to report withheld taxes to the federal government. Failure to make payments as recorded on the Form 941 is the basis for an assessment of Trust Fund Penalties against Responsible Persons (TFRP).
In limited circumstances, business owners may find that they have by reason of error, omission, or sloth, over reported their 941 liabilities. Business owners should review their 941 reporting with their accountant, CPA, bookkeeper, or tax lawyer to determine if an amended 941 is an appropriate mechanism for correcting the over reporting.
Form 941-X correlates with Form 941, the Employer’s Quarterly Federal Tax Return. You may need a corporate tax lawyer to help file.
Form 941-X is a stand-alone form that relates line-by-line with the employment tax return it is correcting. You can file Form 941-X at any time when you discover an error, rather than having to wait to file it at the end of the quarter with the next employment tax return. Contact our tax lawyers at JDKatz: Attorneys at Law for information on how to properly file the Form 941-X.
Some Notes on Completing This Form
- You may use the form for one quarter only. If you are reporting more than one quarter, you must use a separate form for each quarter.
- You may choose (a) an adjustment, if you under-reported, or if you under-reported and over-reported, or (b) a claim, if you over-reported. You may not use an adjustment and a claim on the same form; you will have to use separate forms.
- The process differs if you file less than 90 days from the expiration of the period of limitations on credit or refund for Form 941, or more than 90 days from this date. Read the Instructions (included with the form) for more information, or reach out to your team of Maryland tax attorneys for guidance.
- If your error affected employee withholding, you must obtain written consent from each affected employee. You will have to certify: “I have a written statement from each employee stating that he or she has not claimed (or the claim was rejected) and will not claim a refund or credit for the over collection.” If you cannot find all employees or you cannot get written consent from each employee, you can only make changes in the employer portion.
- Part 3 of the form follows the outline of Form 941. For each item, you will need to include the total corrected amount, the previously reported amount, and the difference.
- You must include a detailed explanation of how you determined your corrections, which is where our small business and corporate tax lawyer can help avoid errors.
Every business and corporation needs the help of an experienced business tax attorney. If you suspect your business may have made an error on its quarterly withholding obligations, contact our firm. Avoiding tax evasion penalties and fines is one thing our tax attorneys can assist with. If you need the ongoing assistance of a business tax attorney for any reason, JDKatz is ready to serve. Contact our firm to discuss your needs and how we can be of service to you.