Square Payroll & DAVO Integration Nightmare: Audited and facing Tax Liens

mugtampa — Tue, 05 May 2026 15:32:36 GMT

Is anyone else dealing with a complete breakdown in Square’s tax filing and "third-party" systems?

I am currently being hit from both sides. On the payroll end, Square has failed to correctly file with the IRS and the Florida Department of Revenue. I’ve called a million times and get ghosted every time they say they’re "looking into it." I even asked to speak with a manager to escalate and was flat-out denied. Now, I am being threatened with a tax lien.

On top of that, I pay for DAVO to handle my sales and use tax. Because of integration errors between Square and DAVO, I’m now being audited for sales tax as well.

The fees and penalties are racking up daily because of their mistakes, and Square refuses to provide any updates or take responsibility. I am desperate at this point, I can't let their negligence kill my business.

Has anyone here actually pursued legal action or hired an attorney to deal with Square? I’m looking for anyone who has successfully used a demand letter or legal pressure to get them to actually fix these filing errors and pay the penalties they caused.

Any advice or lawyer recommendations would be appreciated.

Re: Square Payroll & DAVO Integration Nightmare: Audited and facing Tax Liens

DinaLRosenberg — Tue, 05 May 2026 17:00:01 GMT

This is really scary because we use DAVO and have for years. How long has this been going on?

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Square Payroll & DAVO Integration Nightmare: Audited and facing Tax Liens

Re: Square Payroll & DAVO Integration Nightmare: Audited and facing Tax Liens