Owe Back Payroll Taxes – New Program for Settlements – Former IRS Agents

January 15, 2013
Written by: Fresh Start Tax

 
Mike Sullivan
 
Owe Back Payroll Taxes – New Program for Settlements- 1-866-700-1040

We are comprised of tax attorneys, CPAs, and former IRS agents. We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service in positions as agents, managers and instructors.
We taught tax law at the IRS.
If you owe back payroll taxes there are many remedies and solutions available to you that you are currently not aware of.
It would be in your best interest to contact fresh start tax for free tax consultation and hear the truth and find out the best remedy on how to settle the current case that you have. 1-866-700-1040.
We can offer fresh tax solutions to you that can keep your business open and running for years to come.
If you are not under current audit you may want to look into the voluntary classification settlement program if you have any issues and concerns about your employees that are on your current payroll.
IRS is formed special teams of agents to conduct payroll tax and employment tax audits. If this is a situation you are now in, contact us and we can discuss the situation with you and possibly avert any IRS issue.
The three most common solutions for owing back payroll taxes is for the IRS to go ahead and enter into an installment payment agreement,  put you business in a current hardship if your current financial statement warrants that, or file for a IRS tax settlement called an offer in compromise.
It is in your best interest to make sure that all your tax returns are filed currently and you are making current tax deposits so you can be shown in the best light to Internal Revenue Service.
As a former IRS agent I can tell you specifically that if you are current with your current payroll tax deposits IRS will generally work a deal with you so it is in your best interest to make all timely tax deposits.
Voluntary Classification Settlement Program (VCSP)
The VCSP is a voluntary program that provides an opportunity for taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes.
 Participation in the program
To participate in this voluntary program, the taxpayer must meet certain eligibility requirements and apply to participate in the VCSP by filing Form 8952, Application for Voluntary Classification Settlement Program, and enter into a closing agreement with the IRS.
The VCSP allows eligible taxpayers to obtain relief similar to that currently available through the Classification Settlement Program for taxpayers under examination.
This was done to:
a. Permit a taxpayer under IRS audit, other than an employment tax audit, to be eligible to participate in the VCSP,
b. Clarify the current eligibility requirement that a taxpayer who is a member of an affiliated group within the meaning of section 1504(a) is not eligible to participate in the VCSP if any member of the affiliated group is under employment tax audit,
c. Clarify that a taxpayer is not eligible to participate if the taxpayer is contesting in court the classification of the class or classes of workers from a previous audit by the IRS or Department of Labor and,
d. Eliminate the requirement that a taxpayer agree to extend the period of limitations on assessment of employment taxes as part of the VCSP closing agreement with the IRS.
The VCSP is available for taxpayers who want to voluntarily change the prospective classification of their workers.
This program applies to taxpayers who are currently treating their workers or a class or group of workers as independent contractors or other non employees and want to prospectively treat the workers as employees.
Consistent treatment
A taxpayer must have consistently treated the workers as independent contractors or other non employees, and must have filed all required Forms 1099 for the workers to be reclassified under the VCSP for the previous three years to participate.
You cannot be under a current tax audit
The taxpayer cannot currently be under employment tax audit by the IRS and the taxpayer cannot be currently under audit concerning the classification of the workers by the Department of Labor or by a state government agency.
If the IRS or the Department of Labor has previously audited a taxpayer concerning the classification of the workers, the taxpayer will be eligible only if the taxpayer has complied with the results of that audit and is not currently contesting the classification in court.
Exempt organizations and government entities may participate in VCSP if they meet all of the eligibility requirements.
 
VCSP Agreements
A taxpayer participating in the VCSP will agree to prospectively treat the class or classes of workers as employees for future tax periods.
In exchange, the taxpayer will:
Pay 10 percent of the employment tax liability that would have been due on compensation paid to the workers for the most recent tax year, determined under the reduced rates of section 3509(a) of the Internal Revenue Code.
 Owe Back Payroll Taxes – New Program for Settlements – Former IRS Agents

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