There is no persons better to work your case than former IRS agents and managers who know the system. Since 1982, the affordable tax specialists
We have over 65 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service. Not only were we former IRS agents, managers and teaching instructors, we taught new IRS agents their jobs. We were on the job instructors.
We know the system inside and out and can help you with any tax issue or tax problem that you have including the negotiation of any IRS business, payroll tax debt or individual tax.
We have worked thousands of IRS cases and know the complete inner workings in the methodologies to get you a tax settlement or a payment plan depending on your individual or business situation.
IRS is tougher on Back Payroll Taxes
Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes. The reason for this is very simple, this tax is money held in trust in not an actual tax.
It is one of few taxes that the Internal Revenue Service not only go after the company it can in addition can go after the responsible persons or individuals.You can read more on this below. If IRS finds that you are personally responsible to pay over the payroll taxes that failed to do so IRS will go after you individually.
After the IRS creates individual tax assessment for those responsible it often time results in the filing of federal tax liens, bank and wage levy garnishments.
This is a tax that you should not fool around with because it is number one on the IRS to hit list.
The Internal Revenue Service will individually engage those responsible under section 6672 of the Internal Revenue Code
We should be able to make sure we can reach a reasonable settlement on your payroll tax liability and you can continue to operate your business without fear and worry from the Internal Revenue Service.
With over 60 years of direct working experience at the Internal Revenue Service we know every possible tax solution that can get you immediate and permanent tax relief for a payroll tax settlement.
The Process of receiving a Payroll Tax Settlement, Installment Agreements
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement, whether it be a tax settlement or installment payment.
You will need to provide IRS with the current financial statement along with proof that all payroll tax deposits and 941 tax forms have been filed. Usually that financial statement will be on IRS form 433B which is found on our website.
Along with IRS obtaining a business financial statement they will want to see your individual personal financial statement which IRS we require a form 433a. These forms will need to fully be documented and turned over for IRS to review.
The key to getting successful results in IRS business negotiations is putting your financial statement together and presenting it to the IRS and acceptable fashion. A lot of success in these cases for settlements and payment plans is packaging.
For most company’s of the IRS payroll tax settlement negotiation may come in three forms.
After IRS reviews your current financial statement Internal Revenue Service may determine that you are a:
1. hardship candidate,
2. monthly payment agreement candidate or,
3.an offer in compromise candidate and IRS payroll settlement.
Why have Fresh Start Tax contact the IRS:
You never have to talk with the Internal Revenue Service on these tax matters;
Fresh Start Tax knows what the IRS is looking for;
Fresh Start Tax knows the exact packaging required;
Fresh Start Tax knows the next steps the IRS 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 the 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 an affordable payment plan with the Internal Revenue Service:
Immediately stay current on all payroll tax deposits to show the IRS good faith;
Be prepared to give the IRS a current financial statement;
Make sure your personal tax liabilities are filed and paid;
Have all documentation on the financial statement prepared for the IRS.
If you do not pay your Payroll Taxes IRS can collect them from you individually
To encourage 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.( trust fund recovery penalty )
These payroll 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 Penalties
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 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) ore 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 wilfulness 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 willfulness. You will 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 IRS Trust Fund Amount
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 the IRS determines 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.
Once we assert the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action.
If you owe back payroll tax debt and looking to seeking a payroll tax settlement or installment payment agreement, call us today for free initial tax consultation & we will walk you through the process.
We have been practicing our craft since 1982 and are a full service tax firm.
