Today, Americans who make a living in the Residential or Commercial Construction Industry are facing new financial challenges.
Because of economic issues outside of your control, many of you are now dealing with tax liability and filing issues.
The downturn in the economy has deeply affected General Contractors, roofers, dry-wallers, framers, plumbers, electricians, painters, builders, remodelers, landscapers, concrete contractors, surveyors, architects, engineers and more.
In today’s current economic climate, the housing market has taken the biggest financial blow,
resulting in a lack of work, ultra-competitive bidding on contracts, layoffs, and even business closures by the thousands. Because of these industry-specific issues, many in the construction/contracting industry have fallen far behind on their tax obligations.
At Larson Financial, we understand the unique situations that can lead people in the construction industry to owing back taxes. Because of this, we also know the best ways to resolve them. We understand that:
- With most construction scenarios you need to pay for materials and labor up front, before you get paid for the job.
Retention/Retainage may also be withheld indefinitely.
- The Construction industry has many 1099 vs. W2 issues.
The IRS and State often determine that your 1099 contractors are actually W2 wage-earning employees of yours, when in fact they ARE NOT.
- Late Pay on receivables causes cash-flow issues preventing payment of taxes and creates constraints for finishing your current job,
or starting work on the next one.
- The current economy has led to underbidding of jobs, making profit margin much smaller or non-existent.
- Accounting methods (cash vs. accrual) can complicate book keeping, and cause tax liability or confusion.
If you have already received letters of Intent to Levy, receivable garnishments, or experienced bank account seizures, call us immediately! We can help. If you have not received these letters yet, call us immediately! There are steps we can take to help prevent those aggressive collection actions from taking place.