Whether you have an open or closed (defunct) business and have accrued unpaid payroll taxes, we can help. Payroll taxes consist of the portion of Medicare and social security taxes that you as employer are responsible to contribute for each employee. The employer is responsible to pay 7.65% of the total 15.3% of Medicare and social security tax assessed against the gross wages for each employee. The IRS does not take kindly to the owners or other individuals working for the company that they determine responsible for unpaid payroll taxes. Because payroll deposits are for a portion of your employee taxes, the IRS is very aggressive in their collection tactics against those who are responsible for non-payment. For this reason, payroll tax debt is the worst tax debt to be delinquent on. In fact, IRS agents are trained to view the individuals responsible for non-payment of payroll taxes as thieves.
If you have multiple quarters of unpaid payroll taxes, sooner or later your file will be transferred to a field office in your locality and assigned to an individual revenue officer. The revenue officer’s 1st priority will be to determine the responsible party or parties that should have made sure the payroll deposits were made. This determination is made by conducting a trust fund recovery penalty interview of each owner, officer, or member of the business and any employees who may have been responsible for payroll. Once the interviews are conducted and a determination of the responsible party or parties is made, the revenue officer will issue a civil penalty assessment to that individual. A civil penalty transfers the outstanding payroll liability to the individual social security number of any responsible party. This provides the revenue officer with 2 avenues of collection, the business if still operating and the individual taxpayer deemed responsible. Essentially, as long as the liability stays unpaid and the IRS has determined the business or taxpayer have the ability to repay, the revenue officer will have the power to issue levies against any income source, bank accounts, and possibly seize assets from either entity to pay the outstanding payroll taxes.
Due to the complexity and IRS viewpoint regarding unpaid payroll taxes we encourage any taxpayer in this circumstance to seek representation immediately. Resolve Tax will make it priority number one that all of your rights are asserted and that every procedural step be followed by the IRS or one of its agents as is required by the Internal Revenue Manuel. Resolve Tax will handle all communications with the IRS on your behalf and present only that financial information that is required and necessary to accomplish the best tax resolution based on your particular financial situation.
If you owe back payroll taxes, we can help you negotiate a monthly payment plan to repay the outstanding taxes or possibly submit an Offer in Compromise and attempt to settle the tax debt for less than the full amount.
If you need assistance with IRS payroll tax issues, contact Resolve Tax immediately to see if you qualify for relief at 1-800-721-3890.