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Payroll Tax Liability

Work out an affordable solution to keep your business running and limit your personal exposure. Call Fresh Start Tax 1.866.700.1040 to get started.

 

IRS does not want to seize your business for back taxes on payroll tax problems. 941 payroll taxes are a concern for IRS. These payroll tax liabilities are a first priority for Internal Revenue Service. Delinquent Payroll tax liabilities can cause major hardships on both the companies and the individuals that are responsible for the payroll tax filings. This section will deal with two issues, a corporation that currently owes payroll taxes and the individual who has been set up for the trust fund recovery penalty.

 

Why have a professional tax firm contact IRS:

• You never have to talk with Internal Revenue Service on these tax matters;

• Professionals know what IRS is looking for;

• Professionals know the exact packaging required;

• Professional know the next steps the federal government will take;

• You know your case will be handled and resolved as fast as possible.

 

There are steps your business or corporation can take to avoid IRS taking the following actions:

• IRS has the right to sell your complete inventory at public auction;                                                

• IRS can seize all your accounts receivables;

• IRS can hold you personally responsible for this tax;

• IRS has the right to lock the doors of your business.

 

Steps to take to work out affordable payment plan with Internal Revenue Service:

• Immediately stay current on all payroll tax deposits to show IRS good faith;

• Be prepared to give IRS a current financial statement to show how much you can pay monthly;

• Make sure your personal tax liabilities are filed and paid;

• Have all documentation on the financial statement prepared for IRS.

 

 

 

 

Corporation with delinquent Payroll Taxes

Businesses that are currently operating and owe payroll taxes will find that the IRS will be very aggressively with the collection process of these type of taxes. The IRS looks at this type of payment as monies that were held in trust by your company and meant to be paid to the IRS for the benefit of the employees. These are actually not taxes, the government has trusted the company to collect and pay over these monies to the IRS.
 
The IRS and its agents keep a watchful eye out for repeat offenders and companies that run up deficits quarter after quarter. These companies are prime targets for the IRS. If the payroll is not paid the IRS could close the company and sell off the assets of the company to obtain the payment due. The IRS could also get a copy of the companies accounts receivable list and send levies out to all peoples that owe the company monies. IRS also has a special call alert system and FTD (federal tax deposits) system alert to let them know who, in their area, is behind on payroll taxes. 941 Payroll taxes or trust fund cases are IRS's number one priority.
 
IRS can file a Federal Tax Lien locally against the company that owes the payroll taxes. In addition, IRS may file a federal tax lien under the UCC (Uniform Commercial Code), in the state capitol where the business is located. This will effect the credit, the ability to borrow, and how vendors check on and deal with your company.
 
With the economic downturn, many companies are going to find themselves dipping into the employees tax withheld trust fund taxes. Doing this can cause a huge problem and it is only a matter of time before the IRS comes knocking at the door. If you find yourself in this situation, our professional tax team will be able to help your company avoid forced collection from the IRS and negotiate a livable payment agreement with IRS. These are situations that you should only use a professional tax resolution company because of the high priority the government places delinquent payroll taxes.

 

Individual with Trust Fund Recovery Penalty

One of the huge issues a delinquent payroll tax liability in a corporation,creates is the personal responsibility. This never goes away until the payroll tax/trust fund liability is paid in full. IRS will conduct an investigation and find out who is responsible for the trust fund liability. They want to find out who was the decision maker, who authorized and was responsible for paying the bills. After the investigation, IRS sends out a letter to those individuals they found responsible. These individuals will get a chance to appeal those finding. Once the determinations are made the assessments become final and IRS will personally go after the assets of the individuals who are responsible for paying these taxes. If you are a responsible officer or party of a corporation that owes back payroll taxes the IRS will look not only to the company but also to you personally for the amount due, this is known as the trust fund penalty. This will not go away until the amount due is paid. In addition, the amount owed is not discharged in bankruptcy, the IRS will pursue you until they are paid in full from whatever source.

 

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