by Fresh Start Tax | Oct 25, 2018 | Tax Help
Call us today for a free initial tax consultation and we can let you know what your status is with the Internal Revenue Service.
There is a backend portal that is used by those who are licensed to practice with Internal Revenue Service to pull up your tax transcripts which includes the last six years of the returns you filed, and the money you owe to the Internal Revenue Service.
When we use this portal you have absolutely no fear of being contacted by the IRS because these reports or transcripts are pulled.
However if you call the Internal Revenue Service and asked for your information you have a very definitive fear they’re going to start taking information on you and most likely start working your case.
There is another document which is called a wage and income report that we can pull up that gives us all your 1099s, W-2s, and all third-party reporter documents.
Call us today for a free initial tax consultation and we can walk you through the process of how to get clean, clear up any IRS tax matter.
Since 1982 we have worked thousands of IRS cases successfully.
When you call our office you will speak to a true affordable IRS tax experts.
By the way, if you owe money to the Internal Revenue Service, we can review all your options and make sure the Internal Revenue Service doesn’t ruin your life.
As former IRS agents and managers, we know the system and how to successfully manage the Internal Revenue Service.
How Do I Check To See If I OWE The IRS Money
by Fresh Start Tax | Oct 24, 2018 | Tax Help
As a former IRS agent I can tell you many taxpayers are like ostriches, they hide their head in the sand hoping the IRS will lose your case file.
I can tell you that will never happen. At some point in time if you owe back taxes you will have to deal with your IRS problem.
If this is the case it’s best to be assertive, have a definitive plan and hire a true tax professional who can handle the problem so you can move on with your life and never have to worry about the mail, knock on the door, a levy at the bank, or your wages gone at work.
The bottom line is, IRS isn’t going away. You have to make them go away.
There are various means of paying back taxes to IRS.
As former IRS agents we will explain your options.
As a former IRS agent and teaching instructor with IRS , more attention is given to taxpayers who owe larger dollars to the IRS.
Success comes by knowing the system and understanding what it takes to close an IRS case.
IRS takes a closer look at all cases large dollar especially the financial statements, the IRS is looking for the ability of the taxpayer to pay the back tax. As a former IRS agent this was part of my job.
One of the first tasks of IRS is to make sure all back tax returns are filed and current in the system.
IRS will not close out any open taxpayer inventory case unless all back tax returns are filed and the taxpayer is current on estimated tax payments or their withholding is up-to-date.
IRS is a stickler on this because they don’t want the problem of the back tax debt recurring.
So how will IRS work your case?
The Internal Revenue Service will ask the taxpayer to fill out an IRS form 433A. Sometimes the IRS may ask for a form 433F.
You can find that on our site or on the government site.
IRS will expect that form to be fully completed fully documented along with copies of the last six months bank statements, copies of all monthly expenditures, bills and a copy of pay stubs. This current financial statement is the key to working your case and the key to success.
IRS will conduct a thorough review on that financial statement.
After this review of the financial statement the Internal Revenue Service generally has various buckets of closing programs that the taxpayer can be put into as a result of their current financial statement.
The importance of filling out your financial statement and giving it to IRS is the key to success and failure. I could never tell you how important the financial statement as it will determine the outcome with Internal Revenue Service.
Bucket One.
Currently uncollectible or hardship cases
If the Internal Revenue Service looks at your current financial statement and determines that your expenses exceed your income and you fall within the necessary means test, IRS can place your case in this non-collectible status.
There is good news and bad news within the status.
The good news is IRS will probably suspend your case between one and three years and kick it out for review a couple of years later, the bad news is the penalties and interest still run and the debt gets larger.
Bucket Two.
Installment agreements or monthly payments
If after the Internal Revenue Service looks at your current financial statement and they determine that you have more income than the necessary standards of meeting tests, IRS will ask for a monthly payment based on that financial statement. Hiring a tax professional can assure that IRS does not grab more money than necessary on or review of your financial statement. There are different monthly installment agreements and we will review with you your options upon your free consultation.
Bucket Three.
Offer in compromise
This is called the pennies on a dollar program that you see advertised on TV however the offer in compromise is not for everyone.
I am a former IRS agent and teacher of the offer in compromise.
Approximately 32,000 taxpayers a year can settle their debt for pennies on the dollar, the average settlement is $9500 a year and I caution and warn taxpayers who submit offers in compromise to go through the IRS pre-qualifier tool to find out if they can truly settle their tax debt.
As a former IRS agent I carefully will walk through your financial statement and if you have any chance of being accepted for the offer I will walk you through the program and submit the offer in compromise.
Bucket Four.
Statute of limitations
IRS has 10 years to collect on their back tax debt, the period starts from the date of the assessment. The date of the assessment is the time that IRS had to put your case on the computer at the start the billing process. Various factors will extend the statute such as bankruptcy, the filing of the CDP, or the filing of offer but as a general rule after the 10 year date of assessment date your case goes away by federal statute,
Bucket Five
Bankruptcy.
Yes, Bankruptcy, many taxpayers are unaware that you could file a bankruptcy, a chapter 7 to the discharge debt. As a general rule the taxes have to be three years or older, assessed for more than 240 days and the tax returns have to be filed for at least two years. there are also different chapters in bankruptcy such as an 11 and 13 that a taxpayer can be qualified by speaking to a true bankruptcy expert.
When you call our office we will walk you through the various programs after review of your current financial statement.Like I said before this is a critical form that IRS is using to determine the outcome of your case.
Please keep in mind that you owe over $50,000 the IRS spends a little more time in research in looking at your case.
Many agents will Google your company business or individual self, they will pull up search engine reports to find out about assets or financial histories, check out insurance policies, courthouse records, and credit reports, before they make a determination.
The credit card companies are an excellent source to run down assets, loans and find out monthly payments that you were making.
Call us for a free initial tax consultation and we will walk you through the process of dealing with the Internal Revenue Service.
If You Owe IRS Back Taxes Deal With Your Tax Problem For Good, WHAT ARE YOU WAITING FOR?
by Fresh Start Tax | Oct 24, 2018 | Tax Help
We are national tax debt experts for those who owe federal payroll tax debt. We are the fast, friendly and affordable tax firm that has been servicing the nation since 1982.
Our office has over 200 years of total IRS work experience and we are true experts and how to settle your federal payroll tax debt with Internal Revenue Service.
IRS experts in this matter.
We are available for free initial tax consultation. We are the fast friendly and affordable tax firm.
I am a former IRS Agent and teaching instructor of the Offer Program when formerly employed at the IRS.
We know all the systems, settlement formulas and all the methodology to get you affordable IRS tax debt relief including trust fund debt problem.
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.
Please keep in mind the Internal Revenue Service will conduct a full compliance check to make sure not only your business, company or corporation is current but also your individual taxes are up-to-date.
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.
You my ask why payroll tax that is a big concern for IRS, it simply because those are trust fund taxes that is money held in trust and is not an imposition to collect taxes from a company, it’s simply returning to IRS what you have withheld from employees and matched their Social Security.
IRS has an FTD program which is called the federal tax deposit alert which warns local offices of companies that are failing to file federal tax deposits. As a former IRS agent I worked this program.
Just be advised that IRS does keep a task force available on large companies that are making federal tax deposits.
The Process of receiving a Payroll Tax Debt Settlement
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.
Many times IRS will want a personal or individual financial statement for more responsible persons. For most company’s of the IRS payroll tax settlement may come in three forms.
After IRS reviews your current financial statement the Internal Revenue Service may determine that you are a hardship candidate, monthly payment agreement candidate or 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.
Other Factors To Consider
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
BE CAREFUL Who can be Responsible for the TFRP
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 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.
Payroll IRS Tax Debt Relief + Former Agents Explain Your Options
by Fresh Start Tax | Oct 24, 2018 | Tax Help
The offical IRS manual on Passport Cases.
The TECS is a database maintained by the Department of Homeland Security (DHS), and it is used extensively by the law enforcement community. It contains information about individuals and businesses suspected of, or involved in, violations of federal law.
For IRS Collection, TECS provides two sources to help make contact with taxpayers or locate assets:
Revenue officers can request that delinquent balance due taxpayers be entered into TECS, and the Department of Homeland Security (DHS) will then advise IRS when those taxpayers travel into the United States for business, employment, or personal reasons.
The taxpayers entered into TECS for this purpose are on a TECS lookout indicators list. IRS employees must help maintain the TECS database by requesting that appropriate taxpayers be entered into TECS or be deleted from TECS. (See IRM 5.1.18.13.7.1 for criteria for including taxpayers in TECS database.)
Revenue officers can also request information housed in TECS on past travel that a taxpayer has made to and from the United States.
International and domestic taxpayers can be placed on the TECS lookout indicator list.
For domestic taxpayers consideration should be given if it is believed the domestic taxpayer travels frequently outside the U.S. or Commonwealth Territories and contact cannot otherwise be made. Information derived from DHS can facilitate contact with the taxpayer or discovery of asset information which may facilitate payment of the outstanding liability.
Consider using TECS to place the taxpayer on the TECS lookout indicator list early in the case. If the taxpayer does not provide the information requested by your deadline, and the case meets the criteria to be placed on TECS, enter the taxpayer on TECS for a lookout indicator.
The following example is an illustration of how using TECS early in the case could help in your casework.
Example
A domestic revenue officer has a balance due taxpayer (TP) located in Cleveland, OH in his inventory. TP owes a total of $141,000 for tax periods 30/201312 and 30/201412. During the interview, TP mentions that he is a truck driver and travels to Canada quite often for business purposes.
As the RO is securing a Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, TP says he will never pay and hangs up the phone. The domestic RO then requests the TP be placed on TECS by submitting Form 6668, TECS Entry Request, to his GM and closes the case as CNC – Unable to Contact. One month later, TP is crossing the border from Canada. DHS informs the TECS coordinator of the following information: TP’s U.S. employer, TP’s U.S. address, and TP’s U.S. phone number. The TECS coordinator informs the originating GM and RO about the TECS lookout information. The TECS coordinator creates an OI to input the TECS lookout information and issues the OI to the GM and RO for further action. TP’s employer information received from the TECS lookout information is a new levy source. The RO levies TP’s U.S. employer and closes the case as continuous wage levy.
The GM or RO will inform the TECS coordinator that the TP will remain on the TECS lookout.
Some of the information from a TECS lookout is time sensitive and requires immediate action by the RO and/or GM. The following example is an illustration where the GM and the RO took immediate action.
Example:
An international revenue officer has a balance due TP located in Hong Kong. The international RO is unable to make contact with the TP, and TP has no assets in the United States. TP meets the requirements to be placed on TECS, and RO closes the case as International TC 530 CC 06. One year later, TP travels to the U.S. and arrives in Miami, FL. DHS informs the TECS coordinator that TP will be staying at the hotel in Miami for three days and will then depart to Mexico.
No additional information was given by DHS. The TECS coordinator informs the international GM about the TECS lookout information. The TECS coordinator creates an OI to input the TECS lookout information and issues an OI to the GM and RO for further action. The international GM issues an OI to a domestic RO in Miami to meet with TP and secure full pay and/or a Form 433-A, Collection Information Statement. The international GM contacts the domestic GM in Miami stating that TP will be departing Miami in three days. The domestic RO meets TP at the hotel and secures full payment for the balance due. The international GM or RO will inform the TECS coordinator to remove TP from the TECS lookout.
Taxpayer’s name, date of birth, place of crossing, date and time of crossing, and document number can be disclosed to the taxpayer and/or their representative.
Note:
Any additional information requires authorization from DHS.
Caution:
Do not disclose TECS information to third parties.
Access the TECS web page at http://mysbse.web.irs.gov/collection/international/tecs/default.aspx. You can also access the web page by going to the International Collection tab on the SB/SE Collecting web page and clicking on Treasury Enforcement Communications System (TECS).
The TECS Coordinator:
will coordinate the investigation of TECS cases,
is responsible for informing SB/SE Collection group managers and revenue officers upon receipt of notifications of imminent taxpayer arrival into the U.S. from DHS.
Note:
The TECS coordinator will open an OI or courtesy investigation on ICS to input the TECS lookout information. If the case is archived on ICS, the TECS coordinator will create a case on ICS and open an OI or courtesy investigation and input the TECS lookout information in the ICS case history.
They will review all cases referred from revenue officers requesting that a taxpayer be entered on TECS to ensure that they meet the TECS lookout indicator criteria,
maintain a spreadsheet of taxpayers placed on TECS, and
will handle the referred cases as displayed in the following table:
The table below describes the actions the TECS Coordinator takes for accepted referrals and referral that do not meet TECS criteria.
If Then
The case is accepted The TECS Coordinator will:
forward the taxpayer information to Criminal Investigation for input into TECS,
and document the ICS history.
The case does not meet TECS criteria The TECS Coordinator will:
document the ICS history with the reason
return the referral to the originator.
Contact the TECS coordinator via email at: *SBS
by Fresh Start Tax | Oct 24, 2018 | Tax Help
If you owe some money to Internal Revenue Service on back taxes , call one of S.Florida’s oldest tax firms, since 1982.
There are various means of paying back taxes to IRS. As former IRS agents we will explain your options. A tax settlement may be in your future.
As a former IRS agent and teaching instructor with IRS you should know as a general rule someone with more experience will work your IRS collection case.
That person will have a lot of experience looking for assets and more carefully evaluating your current financial statement.
Your current financial statement holds the key to tax negotiation with the Internal Revenue Service.
Success comes by knowing the system and understanding what it takes to close an IRS case.
IRS takes a closer look at all cases large dollar especially the financial statements, the IRS is looking for the ability of the taxpayer to pay the back tax. As a former IRS agent this was part of my job.
One of the first tasks of IRS is to make sure all back tax returns are filed and current in the system.
IRS will not close out any open taxpayer inventory case unless all back tax returns are filed and the taxpayer is current on estimated tax payments or their withholding is up-to-date.
IRS is a stickler on this because they don’t want the problem of the back tax debt recurring.
So how will IRS work your case?
The Internal Revenue Service will ask the taxpayer to fill out an IRS form 433A.
You can find that on our site or on the government site. IRS will expect that form to be fully completed fully documented along with copies of the last six months bank statements, copies of all monthly expenditures, bills and a copy of pay stubs.
IRS will conduct a thorough review on that financial statement.
The internal revenue service can go through great lengths to do due diligence on your case. They have many search engines at their disposal. They will check Department of motor vehicle, records public records, credit reports, insurance policies and a plethora of other information found on internal systems used by different federal and state government agencies.
IRS knows much more about you than you can possibly imagine. You must make sure you still out your financial statement truthfully and accurately. That’s why it is best a true tax professional provide the necessary tax help to resolve your problem.
After this review of the financial statement the Internal Revenue Service generally has various buckets of closing programs that the taxpayer can be put into as a result of their current financial statement.
The importance of filling out your financial statement and giving it to IRS is the key to success and failure. I could never tell you how important the financial statement as it will determine the outcome with Internal Revenue Service.
Bucket One.
Currently uncollectible or hardship cases
If the Internal Revenue Service looks at your current financial statement and determines that your expenses exceed your income and you fall within the necessary means test, IRS can place your case in this non-collectible status.
There is good news and bad news within the status.
The good news is IRS will probably suspend your case between one and three years and kick it out for review a couple of years later, the bad news is the penalties and interest still run and the debt gets larger.
Bucket Two.
Installment agreements or monthly payments
If after the Internal Revenue Service looks at your current financial statement and they determine that you have more income than the necessary standards of meeting tests, IRS will ask for a monthly payment based on that financial statement. Hiring a tax professional can assure that IRS does not grab more money than necessary on or review of your financial statement. There are different monthly installment agreements and we will review with you your options upon your free consultation.
Bucket Three.
Offer in Compromise
This is called the pennies on a dollar program that you see advertised on TV however the offer in compromise is not for everyone.
I am a former IRS agent and teacher of the offer in compromise.
Approximately 32,000 taxpayers a year can settle their debt for pennies on the dollar, the average settlement is $9500 a year and I caution and warn taxpayers who submit offers in compromise to go through the IRS pre-qualifier tool to find out if they can truly settle their tax debt.
As a former IRS agent I carefully will walk through your financial statement and if you have any chance of being accepted for the offer I will walk you through the program and submit the offer in compromise.
Bucket Four.
Statute of limitations
IRS has 10 years to collect on their back tax debt, the period starts from the date of the assessment. The date of the assessment is the time that IRS had to put your case on the computer at the start the billing process. Various factors will extend the statute such as bankruptcy, the filing of the CDP, or the filing of offer but as a general rule after the 10 year date of assessment date your case goes away by federal statute,
Bucket Five
Bankruptcy.
Yes, Bankruptcy, many taxpayers are unaware that you could file a bankruptcy, a chapter 7 the discharge debt.
As a general rule the taxes have to be three years or older, assessed for more than 240 days and the tax returns have to be filed for at least two years. there are also different chapters in bankruptcy such as an 11 and 13 that a taxpayer can be qualified by speaking to a true bankruptcy expert.
When you call our office we will walk you through the various programs after review of your current financial statement.
If you retainer firm, you will never have to speak to Internal Revenue Service, we handle all communication. We are the fast, friendly and affordable professional tax firm.
Call us for a free initial tax consultation and we will walk you through the process of dealing with the Internal Revenue Service.
How Can You Get Affordable Tax Help on Back Taxes? Ft.Lauderdale, Miami, Boca Raton, Palm Beaches
by Fresh Start Tax | Oct 24, 2018 | Tax Help
We are local tax debt experts for those who owe back federal payroll tax debt. We are the fast, friendly and affordable tax firm.
Our office has over 200 years of total IRS work experience and we are true experts and how to settle your federal payroll tax debt with Internal Revenue Service.
IRS experts in all IRS matters and problems.
We are available for free initial tax consultation.
I am a former IRS Agent and teaching instructor of the Offer Program when formerly employed at the IRS. We know how to settle tax debt.
We know all the systems, settlement formulas and all the methodology to get you affordable IRS tax debt relief including trust fund debt problem.
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.
Please keep in mind the Internal Revenue Service will conduct a full compliance check to make sure not only your business, company or corporation is current but also your individual taxes are up-to-date.
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.
You my ask why payroll tax that is a big concern for IRS, it simply because those are trust fund taxes that is money held in trust and is not an imposition to collect taxes from a company, it’s simply returning to IRS what you have withheld from employees and matched their Social Security.
IRS has a FTD program which is called the federal tax deposit alert which warns local offices of companies that are failing to file federal tax deposits. As a former IRS agent I worked this program.
Just be advised that IRS does keep a task force available on large companies that are making federal tax deposits.
The Process of receiving a Payroll Tax Debt Settlement:
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.
Many times IRS will want a personal or individual financial statement for more responsible persons. For most company’s of the IRS payroll tax settlement may come in three forms.
After IRS reviews your current financial statement the Internal Revenue Service may determine that you are a hardship candidate, monthly payment agreement candidate or 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.
Other Factors To Consider:
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
BE CAREFUL, Who can be Responsible for the TFRP???
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 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.
Call us today to hear the truth.
Owe Back Employee Taxes on 941 Payroll Taxes + Get Tax Help NOW + Ft. Lauderdale, Miami, Boca Raton, Palm Beaches
