Payroll Tax Help IRS Problem – Tax Relief Attorneys, Former IRS 1-866-700-1040
If you are having a IRS payroll tax problem and you need tax help get tax relief from Tax Attorneys, CPAs, and former IRS agents, managers and tax instructors.
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IRS payroll tax problems
As a former IRS agent you should know that Internal Revenue Service pays very close attention to people who do not pay their payroll taxes.
The reason for this is simple, owing payroll taxes is about trust fund money or money that was held in trust by the employer.
In all reality this is not a tax but simply monies are to be turned over to the Internal Revenue Service. Because of this, IRS puts out quarterly alerts on any large dollar taxpayers that do not pay current payroll taxes.
These alerts are called FTD alerts. It is critical that before contacting IRS that you have all 941 tax returns filed and you are making current tax deposits.
You should also be aware that IRS has the ability to set up the trust fund penalty against those person or persons responsible for making deposits. Those individuals who fail to pay over the 941 payroll taxes can and will be held personally responsible for the money to the IRS.
On many large dollar cases the IRS also has the option of making criminal referrals.
If you will owe large dollars to the Internal Revenue Service as a result of payroll tax it is critical you contact a tax professional to go ahead to handle your IRS representation. Simple cases and low dollar cases those taxpayers can handle those on their own.
The trust fund recovery penalty
General rule for trust fund recovery
Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. No penalty shall be imposed under section 6653 or part II of subchapter A of chapter 68 for any offense to which this section is applicable.
Preliminary notice requirement
In general
No penalty shall be imposed under subsection (a) unless the Secretary notifies the taxpayer in writing by mail to an address as determined under section 6212 (b) or in person that the taxpayer shall be subject to an assessment of such penalty.
Timing of notice
The mailing of the notice described in paragraph (1) (or, in the case of such a notice delivered in person, such delivery) shall precede any notice and demand of any penalty under subsection (a) by at least 60 days.
Statute of limitations
If a notice described in paragraph (1) with respect to any penalty is mailed or delivered in person before the expiration of the period provided by section 6501 for the assessment of such penalty (determined without regard to this paragraph), the period provided by such section for the assessment of such penalty shall not expire before the later of—
1. the date 90 days after the date on which such notice was mailed or delivered in person, or
2. if there is a timely protest of the proposed assessment, the date 30 days after the Secretary makes a final administrative determination with respect to such protest.
IRS payroll tax problems
Federal Income Tax and Social Security and Medicare Taxes
You generally must withhold federal income tax from your employees’ wages. You withhold part of Social Security and Medicare taxes from your employees’ wages and you pay a matching amount yourself. To figure how much to withhold from each wage payment, 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 (PDF).
Notice 1036 (PDF) contains the percentage method income tax withholding tables, the Social Security and Medicare tax withholding rates, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employers Tax Guide (PDF), contains the percentage method tables and the wage bracket tables that some employers use.
Employers should start using the new withholding tables as soon as possible in 2013, but not later than February 15, 2013.
Federal Unemployment (FUTA) Tax
You 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 (PDF) for more information on FUTA tax.
Employers in some states may owe more tax under the Federal Unemployment Tax Act (FUTA) than they expect if they operate in a credit reduction state. Employers in credit reduction states must increase the FUTA tax rate on wages subject to taxes under that state’s Unemployment Insurance (UI) program when they prepare their Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
