Construction & Trades SpecialistsIRS Tax Resolution & Specialized Accounting for Construction & Trades in Austin
Protecting your business assets from industry-specific IRS audit triggers. From 941 payroll compliance to subcontractor classification, we speak your language.
Trusted by Austin-area contractors, electricians, plumbers, and general contractors
The Construction Tax Nightmare
These are the industry-specific tax problems that catch construction & trades businesses off guard:
The Subcontractor Trap
The IRS is aggressively reclassifying 1099 subcontractors as W-2 employees. If your subs work regular hours, use your tools, or have been with you for years, you're at risk.
The Consequence: Reclassification means back payroll taxes, trust fund penalties assessed personally against you, and years of amended returns—potentially $50,000+ in unexpected liability.
941 Payroll Tax Avalanche
Seasonal cash flow makes it tempting to delay 941 deposits. But the IRS sees this as 'borrowing' employee money—a red flag that triggers the Trust Fund Recovery Penalty.
The Consequence: TFRP makes you personally liable for all employee withholdings. This debt survives bankruptcy and follows you even if the business closes.
Undocumented Job Costing
Poor job costing and material tracking makes it hard to prove expenses in an audit. The IRS disallows deductions without proper documentation.
The Consequence: Disallowed deductions increase taxable income, triggering additional tax, accuracy penalties (20%), and interest going back 3+ years.
How We Defend Construction & Trades Owners
Construction businesses face unique challenges: project-based accounting, seasonal workforce fluctuations, and complex subcontractor relationships. Peter Mitchell brings 30+ years of experience working with Austin-area contractors, understanding both the operational realities and IRS expectations. We don't just resolve problems—we implement systems that prevent them.
Proactive Subcontractor Compliance Review
We audit your 1099 relationships using the IRS 20-factor test, fix documentation gaps, and implement contracts that support independent contractor status.
941 Payroll Tax Resolution
If you're behind on payroll taxes, we negotiate with the IRS to stop levies, reduce penalties, and establish payment plans that work with seasonal cash flow.
Construction-Specific Bookkeeping
Job costing, WIP tracking, and expense documentation that satisfies IRS requirements and gives you real-time project profitability.
IRS Audit Representation
When the IRS audits your worker classifications or challenges expenses, we represent you directly—you never speak to the IRS alone.
Common Construction Audit Triggers
- High ratio of 1099s to W-2 employees
- Large cash transactions without documentation
- Inconsistent gross profit margins across jobs
- Frequent late or missed 941 deposits
- Significant vehicle and equipment deductions
Our Construction Services
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Helping Austin & Leander Construction & Trades Businesses
From Cedar Park contractors to Round Rock medical practices, we serve construction & trades businesses across Central Texas with specialized tax resolution and accounting services.