We are an AFFORDABLE full-service tax firm that specializes in  tax debt resolution including unpaid employment & payroll  taxes.

Our firm has a combined 65 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.

As former IRS agents and managers we understand the systems, the protocols, and the settlement options you have to resolve unpaid employment taxes.

IRS has a very specific process to deal with Unpaid Employment  & Payroll Taxes.

As a former IRS Agent, I have worked hundred of these cases. I know the system inside and out.

There are various solutions and resolution techniques in dealing with your situation.

The resolution of your case is dependent on the facts of your situation and your current financial statement.

Every situation will be thoroughly reviewed and a plan of action will be provided to you as the best, the most effective and the most affordable way to deal with this tax situation.

As a former IRS agents, please understand the Internal Revenue Service looks closely at employment tax issues and also trust fund penalties.You want to avoid the fund penalty if possible.

If your business is currently in operation and you have on unpaid employment tax issues, IRS will work best with you if you are current on all your tax deposits.

IRS will also seek to set up the trust fund penalty against any responsible officers or employees that would’ve paid these taxes.

IRS will require a form 433B which is a business financial statement and usually require a form 433A which is a personal financial statement and use that as a basis to collect the back taxes.

Employment Taxes and the Trust Fund Recovery Penalty (TFRP)

IRS  encourages prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP.

These taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that amount.

The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business. The business does not have to have stopped operating in order for the TFRP to be assessed.

Who can be Responsible for the trust fund and distribution is she is way is the 401(k) and in professional are:

The TFRP may be assessed against any person who:

• Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and

• Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.

This person may or could be:

• An officer or an employee of a corporation,

• A member or employee of a partnership,

• A corporate director or shareholder,

• A member of a board of trustees of a nonprofit organization,

• Another person with authority and control over funds to direct their disbursement,

• Another corporation or third-party payer,

• Payroll Service Providers (PSP) or responsible parties within a PSP

• Professional Employer Organizations (PEO) or responsible parties within a PEO, or

• Responsible parties within the common law employer (client of PSP/PEO).
For willfulness to exist, the responsible person:

• Must have been, or should have been, aware of the outstanding taxes and

• Either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).

Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of wilfulness.

You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities.

Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.

An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.

Figuring the TFRP Amount: Trust Fund Taxes

The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:

• The unpaid income taxes withheld, plus

• The employee’s portion of the withheld FICA taxes.

For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.

Assessing the TFRP

If we determine that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you.

You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.

The letter will explain your appeal rights. Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process.

If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.

Call us today for a free initial tax consultation we will thoroughly review your case and provide the options which you can choose.