We are affordable professional Christian IRS tax lawyers, Christian IRS tax attorneys, Christian CPA’s, Christian former IRS agents. We are payroll and trust fund tax specialists. <><

We can handle anything from a simple IRS notice or letter, tax representation at all levels filing of back tax returns including appellate and Tax Court.

We have over €200 professional tax experience and over 100 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.

As former IRS Agents, we both worked and taught the IRS tax debt settlement programs and are seasoned specialists  in the trust fund penalty law and application and the appeals processes.

Reminders from Scripture for advice:

Psalm 37: 30

The godly offer good counsel, they know what is right from wrong.

Proverbs 18: 2

Fools have no interest in understanding; they only want to offer their own opinions.

We are also referred by Crown Financial Ministries, a national Christian ministry.

941 PAYROLL TAXES & Trust Fund Taxes, Appeals

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.

WHY ? The reason for this is very simple, this tax is money held in trust in not an actual tax.

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 receiving a IRS Payroll Tax 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.

IRS will review your current financial statement 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.

IRS 941 Payroll Taxes:

Steps to take to work out an affordable payment plan with the Internal Revenue Service:

1. Immediately stay current on all payroll tax deposits to show the IRS good faith;
2. Be prepared to give the IRS a current financial statement;
3. Make sure your personal tax liabilities are filed and paid;
4. 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

WHAT ARE TRUST FUND TAXES, the 6672 penalty

A trust fund tax is money withheld from an employee’s wages (income tax, Social Security, and Medicare taxes) by an employer and held in trust until paid to the Treasury.

When you pay your employees, you do not pay them all the money they earned. As their employer, you have the added responsibility of withholding taxes from their paychecks.

The income tax and employees’ share of FICA (Social Security and Medicare) that you withhold from your employees’ paychecks are part of their wages you pay to the Treasury instead of to your employees.

Your employees trust that you pay the withholding to the Treasury by making Federal Tax Deposits (FTD) (PDF). That is why they are called trust fund taxes.

Through this withholding, your employees pay their contributions toward retirement benefits (Social Security and Medicare) and the income taxes reported on their tax returns.

Your employees’ trust fund taxes, along with your matching share of FICA, are paid to the Treasury through the Federal Tax Deposit System. For additional information, refer to Employment Taxes and the Trust Fund Recovery Penalty (TFRP).

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 IRS 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 for a free tax consult.<>< Speak to the specialists.

Payroll Tax Christian Attorney – Trust Fund Recovery Penalty & Filing Appeals + Former IRS Agents