Affordable Payroll Tax Debt Settlement Options + Former IRS Agents & Managers can settle your case, over 60 years of former IRS work experience. Since 1982.
Here the truth from Former IRS Agents who have worked thousands of cases.
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.
We can file all back payroll tax returns and settle IRS payroll tax debt all at the same time.
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. The internal revenue actually sends out special FTD alerts the local offices letting them know of businesses in the area who own payroll tax debt. This programming phase in and out depending on inventories.
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.
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.
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.
The Process of Getting Payroll Tax Debt Settlement and IRS Tax Relief
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.
When Internal Revenue Service reviews a business they also review individuals as well.
Therefore a personal or individual financial statements are required.
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 current financial statement, Internal Revenue Service may determine that you are a:
1. hardship candidate, you can stay in the status for 2 to 3 years before the IRS will review your case once again. Interest and penalties continue to run and IRS expects to stay current filings and deposits.
2. monthly payment agreement candidate, this is simply based on your current verifiable income and expenses.
3. or an offer in compromise candidate and IRS payroll settlement IRS will require extensive financial statements from both business and personal.
Who Can Be Responsible for the IRS TFRP
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.
The TFRP 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:
1. An officer or an employee of a corporation,
2.A member or employee of a partnership,
3.A corporate director or shareholder,
4.A member of a board of trustees of a nonprofit organization,
5. Another person with authority and control over funds to direct their disbursement,
6. Another corporation or third-party payer,
7. Payroll Service Providers (PSP) ore responsible parties within a PSP
8. Professional Employer Organizations (PEO) or responsible parties within a PEO, or
9. Responsible parties within the common law employer (client of PSP/PEO).
For wilfulness to exist for IRS to assess , the responsible person:
Must or should 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. Interviews will be conducted on form 4180
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.
It is not wise for taxpayers to represent themselves when IRS’s trying to assess the trust fund recovery penalty. As a former IRS agent I can tell you can say bunches of money by having a professional firm represent you during this process.
How does IRS Figure 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. You must follow-up on this letter.
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, we can file a federal tax lien or take levy or seizure action.
Why have Fresh Start Tax LLC 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
Steps necessary 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.
On many cases, as the Internal Revenue Service works on payroll cases they will assess the individual trust fund penalties against the responsible officers as the business continues to operate.
The applicable code section IRS uses to prepare back payroll tax returns.
26 U.S. Code § 6020 – Returns prepared for or executed by Secretary
(a) Preparation of return by Secretary
If any person shall fail to make a return required by this title or by regulations prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which, being signed by such person, may be received by the Secretary as the return of such person.
(b) Execution of return by Secretary
(1) Authority of Secretary to execute return
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns
Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.
File Back Payroll Tax Return, = Settle IRS Payroll Taxes, 941 Tax Debt,
