Spokane Business & Payroll Tax Relief

One of the biggest hurdles to running a business and staying in the black is the obligation to regularly deposit payroll taxes. State, local, and federal governments all depend on payroll tax contributions as a large portion of their overall income.

In fact, the Center on Budget and Policy Priorities reports that federal payroll taxes contributed $1.3 trillion, or nearly a third of all federal revenues, in FY2021.

Federal payroll taxes largely contribute to the funding of Social Security and Medicare. In Washington, state payroll taxes contribute to the state’s Unemployment and Workers’ Compensation funds, in addition to providing a portion of the business’s overall Washington State Tax responsibilities.

Because these revenues are so important, state and federal authorities will seemingly stop at nothing to collect them. The good news is that you may be eligible for certain tax incentives and credits that you failed to collect, which can potentially apply to any of the returns your business filed in the past three years.

A filer can submit an amended return up to three years after the initial deadline for the return. This amended return may claim new credits and deductions that the filer initially missed, potentially lowering the amount of taxes they owe.

The business may have also miscalculated its total taxable revenues or made other oversights. Instant Tax Solutions pledges to thoroughly review your recent financials to help ensure that you are paying only exactly what you owe.

We may also be able to help you manage your owed back taxes through penalty abatement, installment plans, or an offer in compromise. The availability of these forms of relief depends entirely on the taxes owed, your business’s history, and whether you can sufficiently justify your request for relief or reduction of your owed business taxes.

Instant Tax Solutions will work closely with you to explore every available opportunity. We have helped thousands of businesses and individuals like you work with the federal and state government, getting taxes owed down to a manageable size while mitigating penalties, liens, and other consequences you may currently face as a result of your past-due tax amounts.

The state of Washington has many incentive programs and credits available to offset the amount of state taxes you will pay.

Note that many of these programs only apply to certain industries or employers that operate in specific economic zones. Nevertheless, going through these programs could give you opportunities to lower the amount of taxes due at year-end.

Some noteworthy Washington state tax credit programs to consider include:

• Aerospace Manufacturer B&O Credit — Available for businesses that manufacture commercial airplanes and component parts
• Aluminum Smelter Credits — Exempt natural gas use taxes as well as certain state retail sales taxes and use taxes
• Bad Debt Tax Credit — Can eliminate certain retail sales taxes that are uncollectible or that have been written off
• Capital Gains B&O Tax Credit — Reduces the business and occupation taxes related to long-term capital assets that also incur Washington capital gains taxes
• Clean Alternative Fuel Commercial Vehicle and Vehicle Infrastructure Tax Credit — Provided to businesses that purchase or lease green energy vehicles, including conversion of existing vehicles to use alternative fuels
• Commute Trip Reduction Credit — Available to employers who provide incentives for employees to carpool or otherwise reduce the impact of their commute trips
• Customized Employee Workforce Training Credit — Participating in Washington Customized Training Programs can allow some businesses to partially offset the cost of their business and occupancy taxes
• Energy Efficiency Incentive Credit — Tax credits for utility companies that incentivize owners of commercial and multifamily residential buildings to improve energy efficiency and alternative energy usage
• Equitable Access to Credit Program B&O Tax Credit — Can provide up to $1 million in credits for businesses that contribute to the Equitable Access to Credit Program through the Department of Commerce
• External Multiple Activities Credits (MATC), Taxes Paid to Other States — Applies to certain manufacturers and extractors with activities lying outside the state of Washington
• Hazardous Substance Tax — Offsets the cost of taxes paid on fuel that was transported and taxed in the state of Washington but not used there
• High Technology Credit — Provided to certain technology-focused businesses engaged in substantial research and development for advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology.
• Hospital Safe Patient Handling Credit — Offsets business and occupancy taxes in proportion to the costs of acquiring certain patient lifting equipment
• International Services Credit — Available to certain businesses that provide internationally based services and that operate within designated Community Empowerment Zones
• Low-Income Community Solar Project Cost Recovery Credit — Offsets the costs of certain incentive payments made in connection with solar energy development in low-income communities
• Main Street Credit — Reduces business and occupancy taxes for businesses that apply to and make contributions to the Main Street Organization or to the Main Street Trust Fund
• Manufactured/Sold Inside Washington MATC — Provides credit to businesses that extract or manufacture products sold in Washington, either retail or wholesale
• Motion Picture Competitiveness Program Credit — Reduces business and occupancy taxes for qualifying entities that contribute to a Motion Picture Competitiveness Program (MPCP).
• Multiple Activities Tax Credit (MATC) — Allows businesses to avoid paying twice for the same product
• Pollution Control Credits — Available to businesses that don’t take the exemptions offered in connection to pollution control systems
• Public Utility Tax Credit for Billing Discounts/Qualified Contributions to a Low-Income Home Energy Assistance Fund — Provided to light, power, and gas businesses in connection with qualifying contributions and billing discounts
• Renewable Energy System Cost Recovery Credit — Offsets Public Utility Taxes in proportion to incentive payments provided for qualifying renewable energy systems
• Sales Tax Paid in Other States — Prevents paying twice for property and goods purchased or first used outside the state of Washington
• Silicon Smelter Credits — Offers a specific exemption category for the brokered natural gas use tax
• Small Business B&O Tax Credit — Offered to qualifying businesses according to the monthly, quarterly, and annual B&O tax obligations
• Syrup Tax Paid B&O Credit — Offered for qualifying purchases that trigger the syrup tax for carbonated fountain drink syrup purchases
• Tobacco Products/Cigar Tax Credit — Provided to qualifying businesses that distribute tobacco products outside the state of Washington
• Vapor Solution Credit, Accessible Containers Greater than 5 mL Credit/All Other — Identical to the tobacco credit above, except for certain vapor products sold outside the state of Washington
• Veterans Employer B&O Tax Credit/Veterans Employer PUT Credit — Offered to businesses that provide qualifying employment to an unemployed veteran in a full-time position

Certain businesses may be able to take advantage of Washington’s Voluntary Contribution Program to reduce their unemployment tax rate when they reimburse the unemployment insurance trust fund for unemployment benefits paid in connection to their previous employees.

Speak to your tax professional for more guidance.

Businesses are provided many of the same opportunities as individuals to reduce their federal tax burden or mitigate penalties on the taxes they owe. These options may include:

• Currently not collectible — Delays collection actions for businesses experiencing a temporary hardship that are unable to currently pay their tax obligations
• Offer in compromise — Allows certain qualifying organizations to reduce the total amount of taxes they owe by providing a lump sum payment or a series of payments within a short time window
• Installment plans — Creates an agreement to pay back taxes through regular installments over a set time period; this arrangement may allow businesses to remove certain levies or liens placed upon their assets
• Amended/Adjusted/Appealed Tax Assessments and Collection Actions — You may be able to reduce your total tax burden, or at the very least, appeal decisions to collect taxes through levies and liens
• Penalty abatement — Certain qualifying operations may be able to eliminate certain penalties and interest, reducing the total amount they owe

Not only can Instant Tax Solutions help you find all available forms of business & payroll tax relief, but we can also assist with putting you into full business tax compliance for the fiscal years ahead. Getting out from underneath tax debt can seem challenging, but the key is to develop a plan to reduce what you owe (when possible), pay down the rest (in as manageable a way as possible), and then get on the right track to start paying taxes on time and in the method required.

When you are ready to transform your business’s finances and get it on the path toward the sunniest financial future possible, reach out to our tax experts. Call (888) 886-5526 or contact us online to schedule your confidential consultation and financials review today.