Former IRS Agents “who know the system” can provide Affordable Employment Tax, 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
Employment Tax Information
Employers must deposit and report employment taxes.
At the end of the year, you must prepare and file Form W-2, Wage and Tax Statement to report wages, tips and other compensation paid to an employee.
Use Form W-3, Transmittal of Wage and Tax Statements to transmit Forms W-2 to the Social Security Administration.
Federal Income Tax
Employers generally must withhold federal income tax from employees’ wages. To figure out how much tax to withhold, use the employee’s Form W-4 and withholding tables described in Publication 15, Employer’s Tax Guide.
You must deposit your withholding. The requirements for depositing, as explained in Publication 15, vary based on your business and the amount you withhold.
Social Security and Medicare Taxes
Employers generally must withhold part of social security and Medicare taxes from employees’ wages and you pay a matching amount yourself. To figure out how much tax to withhold, use the employee’s Form W-4 and the methods described in Publication 15, Employer’s Tax Guide and Publication 15-A, Employer’s Supplemental Tax Guide.
You must deposit the wages you withhold. See requirements for depositing.
For 2013, the employee tax rate for social security increased to 6.2%. The social security wage base limit increased to $113,700.
Additional Medicare Tax
Beginning January 1, 2013, employers are responsible for withholding the 0.9% Additional Medicare Tax on an employee’s wages and compensation that exceeds a threshold amount based on the employee’s filing status. You are required to begin withholding Additional Medicare Tax in the pay period in which it pays wages and compensation in excess of the threshold amount to an employee. There is no employer match for the Additional
Medicare Tax.
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Federal Unemployment (FUTA) Tax
Employers report and pay FUTA tax separately from Federal Income tax, and social security and Medicare taxes. You pay FUTA tax only from your own funds. Employees do not pay this tax or have it withheld from their pay. Refer to Publication 15, Employer’s Tax Guide and Publication 15-A, Employer’s Supplemental Tax Guide for more information on FUTA tax.
Self-Employment Tax
Self-Employment Tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most employe
