by Jim Magary | Dec 7, 2015 | Tax Help
We are former AFFORDABLE IRS agents and managers who know the system. Since 1982, A+ rated by the Better Business Bureau.
If you owe back payroll taxes the IRS can assess the trust fund penalty against any person or persons responsible for paying the 941 back payroll taxes. under authority of 6672 of the IRS code the IRS can collect money from those responsible.
If the IRS has found you a responsible person for the trust fund penalty, call us today for free initial tax consultation and we will walk you through the process of resolving this taxed at once and for all.
There are various options you have for tax relief.
First of all we need to look to find out if you were truly responsible under 6672 of the IRS code.
We will conduct a review to find out if there is any way that we can appeal for change the assessment of this trust fund tax.
If you are responsible for the tax, IRS will take a current financial statement and make a determination based on the collectibility of the tax.
How the Internal Revenue Service will work your case if you owe the tax debt.
IRS will require a 433A, an individual financial statement. You can find that form directly on our website.
That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.
Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.
1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time. Sometimes it is called currently not collectible. Cases that are placed at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.
2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.
Other taxpayers file an offer in compromise to settle their case for pennies on the dollar. the offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.
The reason I know I am a former IRS agent and teaching instructor of the offer in compromise. I’m a true expert when it comes to the acceptances of offer in compromise. we will carefully review your case to find out if you are an acceptable candidate.
Before you go filing for offer in compromise find out if you are a qualified candidate and walked to the pre-qualifier tool.
Call us today for a free initial tax consultation and we will go through the various remedies to go ahead and relieve you of your tax better manage it in the best way possible.
We are a full service tax firm with a specialty in all IRS and state tax matters.
Owe Trust Fund Taxes + Settle IRS Tax Debt + Offer in Compromise + Appeal Options
by Jim Magary | Dec 7, 2015 | Tax Help
We have been in practice since 1982, Former IRS Agents, Managers, CPA’s & Tax Attorneys, A plus rated by the BBB.
We can resolve IRS Tax Debt including Payroll Tax Debt. There a variety of options available to you if you owe past-due IRS payroll tax debt. Being former IRS agents we know the exact process and the most affordable and quickest way to resolve these tax issues.
When you call our office you will speak directly to former IRS agents, managers and tax instructors that have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
Once we have reviewed your current financial statement as a general rule we will tell you exactly how your case is going to close.
We can review with you the best possible way to end your payroll tax problems, make an IRS payment plan, how to remove an IRS tax levy and to represent you during an IRS tax audit.
For those of you who need to file tax returns whether current or back years, call us today and we will walk you through the process of our learning experiences that total 206 years.
IRS Installment Agreements or IRS Payment Plans
Last year the Internal Revenue Service granted close to 6.5 million IRS payment plans, installment agreements and streamlined payment plans to taxpayers. Payroll agreements have different standards than individual agreements.
Your current financial statement will determine if you are installment agreement candidate.
Keep in mind your financial statement will need to be fully documented Bank statements and copy of all expenses. You must be able to fully verify income.
The Internal Revenue Service will conduct a full review on your financial statement.
Call us today for free initial tax consultation and we will walk you through the process to get you an IRS payment plan, installment agreement or tell you how to make an affordable monthly streamlined payment with the Internal Revenue Service.
One of the first things reduced to find out whether you can settle your tax debt for pennies on the dollar.
IRS Payroll TAX DEBT SETTLEMENTS + Offer in Compromise
We can also talk you about the possible tax solution of settling your tax debt through the offer in compromise program, that is settling your tax debt for pennies on the dollar.
The way you can settle your tax debt for pennies on the dollar is through the offer in compromise program.
When you call our office you will speak directly to a former IRS agent who both worked and taught the program for IRS. The writer of this blog is a former IRS agent and teaching instructor.
One of the keys to the successful completion acceptance of an offer in compromise is to understand the process.
You can follow the pre-qualifier tool on our website and you can find out firsthand if you are a qualified candidate for the program.
You should never give your money to a tax firm unless you have some assurance your offer has a chance of acceptance.
If you owe back payroll 941 taxes + Trust Fund Taxes
If you owe back payroll taxes the Internal Revenue Service will require both business and individual. Both of these statements will need to be completely documented. IRS has the right to assert the trust fund recovery penalty against responsible offers of payroll taxes are outstanding. It is critical in our initial tax consultation we talk to you about the assessment of trust fund taxes against responsible parties.
Removals and Stopping an IRS Tax Levies, IRS Bank Levy, IRS Wage Garnishments Levies
If you wish to remove an IRS tax levy will need to give IRS a current financial statement on form 433F.
IRS will require that financial statement to be completely documented and verified.
Within 24 hours of receiving your current financial statement as a general rule we can get your bank or wage levy garnishment released.
We will let you know about the IRS national standard program so you understand the process of how IRS settles tax debt.
Need to file back or past due tax returns
As a general rule the Internal Revenue Service will close no open case or module if you have not filed all your back tax returns.
You could have a former IRS agent who knows the system prepare your back tax returns with little or few records. We can help audit proof your tax return.
We are A+ rated by the Better Business Bureau, since 1982. when you call our office you’ll speak to a true IRS professional and not salespeople. we know all the systems and methodologies to give you effective IRS tax relief for any tax problem.
Free initial tax consultations and assessments.
Owe Past Due IRS Payroll Taxes Debt + Trust Fund Problems + Settling IRS Tax Debt + Affordable, Since 1982
by Jim Magary | Dec 7, 2015 | Tax Help
Former IRS Agents “who know the system” can provide Affordable Payroll Tax Resolution Service, Since 1982.
We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service. We know all IRS systems, methodologies, and settlement formulas to go ahead and get you the very best IRS payroll tax debt relief.
We can help resolve and settle any 941 employment tax debt, business tax debt and review your different options and solutions to fully resolve your business tax debt.
We are true IRS tax debt relief specialist for any type of IRS or state taxes including payroll tax debt.
We have worked thousands of IRS cases since 1982 and are true experts. We can keep the IRS out of your life. You will never have to speak to the IRS.
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 main reason for this is very simple, this tax is money held in trust in not an actual tax.
Therefore the IRS has special programming to go after those who owe back payroll taxes. IRS when investigating back payroll taxes will look at the individuals responsible for paying the back taxes along with their own personal financial statements.
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. The other tax similar to this is excise tax.
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. You want to make sure you safeguard your personal rights and if IRS tries to set an individual assessment up against you, make sure you have a season tax professional to give you your best tax defense. IRS conducts an extensive investigation for payroll taxes which includes looking at business financial statements, business bank accounts and starting an investigation on the individuals who should’ve paid over this trust fund debt to the government.
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. Your current financial statement will determine the options in the relief that are available to you.
IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS.
Being a former IRS agent most companies fail to pay their back payroll taxes simply because of cash flow. IRS will conduct a complete investigation of all business assets and all expenses paid during the process of resolution. You will be required to fill out form 4338, and 433B, see below.
Abatement of Penalties
If you have incurred the wrath of IRS penalties call us today and we will review with you the four types of penalties IRS can assess as a result of tax debt. Each case is different and unique. Upon your free initial tax consultation we will let you know the possibility to get your penalties and interest reduced or resolved.
The Process of Dealing With IRS regarding 941 Payroll Taxes.
IRS Payroll Tax Resolution Services + IRS Affordable Representation + Settlements, Payment, Penalty Reductions
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement.
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.
One of the most important things to know about getting a payroll tax debt settlement, payment or moving on in the process is to understand that your current financial statement both business and individual will be the determining factor IRS will use to handle how your case closes.
When Internal Revenue Service reviews a business they also review individuals as well.
Therefore an individual financial statements are required. We know this process inside and out we have worked hundreds and hundreds of cases, we can make this an easy and seamless process for you. IRS will expect a 433B for the business & 433A for the individual.
IRS will expect complete documentation to support all the figures on the financial statements. The financial statement is one of the key documents IRS uses before a taxpayer will get a payroll debt settlement for tax relief.
After IRS reviews your personal and business current financial statement, Internal Revenue Service may determine that you are a:
1. hardship candidate:
Would simply means IRS will suspend any activity on current collections for a couple of years. Interest and penalty will run but IRS will review your case somewhere further down the road.
2. monthly payment agreement candidate:
IRS will enter a payment plan depending on your ability to pay back the tax and completely dependent on your current financial statement with a careful review of your income statement.
3. or, an offer in compromise candidate and IRS payroll settlement:
IRS will consider an offer in compromise to settle payroll tax debt by doing a careful review of the individual’s personal financial statement and business financial statement.
Offer in Compromise Settlement. IRS will expect a fully documented form 433A OIC and 433B OIC along with the 656 OIC. These forms must be filled out correctly in this truly wise to have a season tax professional who have worked many offers in compromise to walk you through the process.
IRS takes an extensive amount of time before they will accept an offer in compromise. You must know the system to get an offer in compromise through.
What You Need to Know:
IRS will next turn to the person or persons responsible for paying the back trust fund taxes. since this was not a tax but monies to be held in trust the IRS code under 6672 states that responsible persons can be held liable for the unpaid trust fund taxes on payroll or 941 taxes.
Who Can Be Responsible for the Trust Fund Taxes Payroll Debt:
One of the unusual features about payroll tax debt is the fact that IRS can collect the trust fund tax debt from the individuals who are responsible for paying the back payroll taxes. This is true with both payroll and excise taxes.
I cannot tell you as a former IRS agent how many trust fund interviews I have had to try to find out who is responsible for paying the taxes. Before I have these interviews I gather a number of facts. I get bank signature cards, corporate resolution and review checks to find out who signed checks to pay bills via the Corporation.
The review of checks and bank signature cards is a good indicator on who you can find to be responsible. to get a more extensive idea of the questions IRS will ask look at IRS form 4180 and you will find an extensive list of questions asked.
The Trust Fund Penalty may be assessed against any person(s) who:
a. Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
b. 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, but not limited to:
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 wilfulness for this to exist, the responsible person (s):
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 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.
How does IRS Figure the 941 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 IRS asserts the penalty, the IRS can take collection action against your personal assets. For instance, IRS can file a federal tax lien or take levy or seizure action. Seizure actions usually include bank levies and wage garnishment levies.
Call us today for a free initial consultation and we will walk you through the process if you owe past-due IRS payroll taxes.
Also you are going to want to make sure you are current on all your individual tax obligations and filing of your 1040 taxes.
During the course of any IRS investigation they will conduct a full compliance check which means they will make sure all personal and business taxes are up to date including current depositories are estimated payments.
We are a full service tax firm with a specialty in IRS taxes with the complete expertise and back payroll tax problems.
When you call our office you will speak to a true IRS tax expert who specializes in the resolution of IRS tax problems. Here the truth today and start the process of resolving your back payroll, business or individual tax debt.
IRS Payroll Tax Resolution Services + IRS Affordable Representation + Settlements, Payment, Penalty Reductions
by Jim Magary | Dec 7, 2015 | Tax Help
Affordable Former IRS Agents & Managers who know all the Options for 941 Business Tax Debt, since 1982.
We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service. We know all IRS systems, methodologies, and settlement formulas to go ahead and get you the very best IRS payroll tax debt relief.
We can help resolve and settle any 941 employment tax debt, business tax debt and review your different options and solutions to fully resolve your business tax debt. we are true IRS tax debt relief specialist for any type of IRS or state taxes including payroll tax debt.
We have worked thousands of IRS cases since 1982 and are true experts.
We can keep the IRS out of your life. You will never have to speak to the IRS.
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 main reason for this is very simple, this tax is money held in trust in not an actual tax. Whether you pay this liability are not the IRS will issue refunds to those who have W-2s that are file with their tax return.
Therefore the IRS has special programming to go after those who owe back payroll taxes. IRS when investigating back payroll taxes will look at the individuals responsible for paying the back taxes along with their own personal financial statements.
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. The other tax similar to this is excise tax.
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.
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. Your current financial statement will determine the options in the relief that are available to you.
IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS. Being a former IRS agent most companies fail to pay their back payroll taxes simply because of cash flow.
The Process of Dealing With IRS regarding 941 Payroll Taxes.
IRS Tax Debt Relief + Specialist, Payroll Tax Problems (941)
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement.
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.
One of the most important things to know about getting a payroll tax debt settlement, payment or moving on in the process is to understand that your current financial statement both business and individual will be the determining factor IRS will use to handle how your case closes.
When Internal Revenue Service reviews a business they also review individuals as well.
Therefore an individual financial statements are required. We know this process inside and out we have worked hundreds and hundreds of cases, we can make this an easy and seamless process for you.
IRS will expect a 433B for the business & 433A for the individual.
IRS will expect complete documentation to support all the figures on the financial statements. The financial statement is one of the key documents IRS uses before a taxpayer will get a payroll debt settlement for tax relief.
After IRS reviews your personal and business current financial statement, Internal Revenue Service may determine that you are a:
1. hardship candidate, would simply means IRS will suspend any activity on current collections for a couple of years. Interest and penalty will run but IRS will review your case somewhere further down the road.
2. monthly payment agreement candidate, IRS will enter a payment plan depending on your ability to pay back the tax and completely dependent on your current financial statement with a careful review of your income statement.
3. or, an offer in compromise candidate and IRS payroll settlement, IRS will consider an offer in compromise to settle payroll tax debt by doing a careful review of the individual’s personal financial statement and business financial statement.
IRS will expect a fully documented form 433A OIC and 433B OIC along with the 656 OIC. these forms must be filled out correctly in this truly wise to have a season tax professional who have worked many offers in compromise to walk you through the process. IRS takes an extensive amount of time before they will accept an offer in compromise. You must know the system to get an offer in compromise through.
Important;
IRS will next turn to the person or persons responsible for paying the back trust fund taxes. since this was not a tax but monies to be held in trust the IRS code under 6672 states that responsible persons can be held liable for the unpaid trust fund taxes on payroll or 941 taxes.
Who Can Be Responsible for the Trust Fund Taxes Debt , the IRS will conduct an extensive interview.
One of the unusual features about payroll tax debt is the fact that IRS can collect the trust fund tax debt from the individuals who are responsible for paying the back payroll taxes. This is true with both payroll and excise taxes.
I cannot tell you as a former IRS agent how many trust fund interviews I have had to try to find out who is responsible for paying the taxes. before I have these interviews I gather a number of facts. I get bank signature cards, corporate resolution and review checks to find out who signed checks to pay bills via the Corporation.
The review of checks and bank signature cards is a good indicator on who you can find to be responsible.
The Trust Fund Penalty may be assessed against any person who:
a. Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
b. 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, but not limited to:
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 wilfulness to exist, the responsible person (s):
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 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.
How does IRS Figure the 941 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 IRS asserts the penalty, the IRS can take collection action against your personal assets. For instance, IRS can file a federal tax lien or take levy or seizure action. Seizure actions usually include bank levies and wage garnishment levies.
Call us today for a free initial consultation and we will walk you through the process if you owe past-due IRS payroll taxes.
Also you are going to want to make sure you are current on all your individual tax obligations and filing of your 1040 taxes. During the course of any IRS investigation they will conduct a full compliance check which means they will make sure all personal and business taxes are up to date including current depositories are estimated payments.
We are a full service tax firm with a specialty in IRS taxes with the complete expertise and back payroll tax problems.
IRS Tax Debt Relief + Specialist, Payroll Tax Problems (941) + Former IRS + Who Know all the Options + Since 1982
by Jim Magary | Dec 7, 2015 | Tax Help
Affordable Former IRS Agents & Managers who know all the Options for 941 Business Tax Debt, since 1982.
We have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We know all IRS systems, methodologies, and settlement formulas to go ahead and get you the very best IRS payroll tax debt relief.
We can help resolve and settle any 941 employment tax debt, business tax debt and review your different options and solutions to fully resolve your business tax debt.
Here the truth from Former IRS Agents who have worked thousands of cases. We can keep the IRS out of your life. You will never have to speak to the IRS. We are the affordable professional firm.
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 main reason for this is very simple, this tax is money held in trust in not an actual tax. Whether you pay this liability are not the IRS will issue refunds to those who have W-2s that are file with their tax return.
Therefore the IRS has special programming to go after those who owe back payroll taxes. IRS when investigating back payroll taxes will look at the individuals responsible for paying the back taxes along with their own personal financial statements.
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. The other tax similar to this is excise tax.
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.
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. Your current financial statement will determine the options in the relief that are available to you.
IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS. Being a former IRS agent most companies fail to pay their back payroll taxes simply because of cash flow.
The Process of Dealing With IRS regarding Payroll Taxes.
Owe IRS Business Tax Debt + File, IRS Payment Plan & Settlement, Reduce Tax Debt + 941 Payroll Taxes Options
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement.
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.
One of the most important things to know about getting a payroll tax debt settlement, payment or moving on in the process is to understand that your current financial statement both business and individual will be the determining factor IRS will use to handle how your case closes.
When Internal Revenue Service reviews a business they also review individuals as well.
Therefore an individual financial statements are required. We know this process inside and out we have worked hundreds and hundreds of cases, we can make this an easy and seamless process for you.
IRS will expect a 433B for the business & 433A for the individual.
IRS will expect complete documentation to support all the figures on the financial statements. The financial statement is one of the key documents IRS uses before a taxpayer will get a payroll debt settlement for tax relief.
After IRS reviews your personal and business current financial statement, Internal Revenue Service may determine that you are a:
1. hardship candidate, would simply means IRS will suspend any activity on current collections for a couple of years. Interest and penalty will run but IRS will review your case somewhere further down the road.
2. monthly payment agreement candidate, IRS will enter a payment plan depending on your ability to pay back the tax and completely dependent on your current financial statement with a careful review of your income statement.
3. or, an offer in compromise candidate and IRS payroll settlement, IRS will consider an offer in compromise to settle payroll tax debt by doing a careful review of the individual’s personal financial statement and business financial statement.
IRS will expect a fully documented form 433A OIC and 433B OIC along with the 656 OIC. these forms must be filled out correctly in this truly wise to have a season tax professional who have worked many offers in compromise to walk you through the process. IRS takes an extensive amount of time before they will accept an offer in compromise. You must know the system to get an offer in compromise through.
Important to Know :
IRS will next turn to the person or persons responsible for paying the back trust fund taxes. since this was not a tax but monies to be held in trust the IRS code under 6672 states that responsible persons can be held liable for the unpaid trust fund taxes on payroll or 941 taxes.
Who Can Be Responsible for the Trust Fund Taxes, the IRS will conduct an extensive interview.
One of the unusual features about payroll tax debt is the fact that IRS can collect the trust fund tax debt from the individuals who are responsible for paying the back payroll taxes. This is true with both payroll and excise taxes.
I cannot tell you as a former IRS agent how many trust fund interviews I have had to try to find out who is responsible for paying the taxes. before I have these interviews I gather a number of facts. I get bank signature cards, corporate resolution and review checks to find out who signed checks to pay bills via the Corporation.
The review of checks and bank signature cards is a good indicator on who you can find to be responsible.
The Trust Fund Penalty may be assessed against any person who:
a. Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
b. 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, but not limited to:
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 wilfulness to exist, the responsible person (s):
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 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.
How does IRS Figure the 941 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 IRS asserts the penalty, the IRS can take collection action against your personal assets. For instance, IRS can file a federal tax lien or take levy or seizure action. Seizure actions usually include bank levies and wage garnishment levies.
Call us today for a free initial consultation and we will walk you through the process if you owe past-due IRS payroll taxes.
As read above there are three general solutions and options to go ahead and resolve your back payroll tax issues.
Also you are going to want to make sure you are current on all your individual tax obligations and filing of your 1040 taxes.
Owe IRS Business Tax Debt + File, IRS Payment Plan & Settlement, Reduce Tax Debt + 941 Payroll Taxes Options + Former IRSI
