Payroll Tax Problems

If you have payroll tax problems and owe back 941 taxes contact us today for an immediate tax resolution of your current situation.

Being Former IRS Agents we know every remedy possible.

We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.

We’ve been practicing in South Florida since 1982 and are A+ rated by the Better Business Bureau.

We are comprised of tax attorneys, certified public accountants, and former IRS agents and tax instructors. We are one of the most experienced tax firms for resolving IRS payroll tax problems in South Florida.

When you call our office you can speak directly to a tax professional.

Resolution of payroll tax problems

Being a former IRS agent I can tell you that the Internal Revenue Service is tough on payroll tax problems because in all reality it is not a tax but withholding of funds that was supposed to be turned over to IRS. As a result I read will not play games with money that you were to hold in trust.

I would recommend to any prospective client or person reading this blog, if you have a payroll tax problem,  get on the good side of the Internal Revenue Service.

How you do that ?

Start making current weekly or biweekly 941 payroll tax deposits to show IRS you are willing to get back in the system and stay current. I cannot tell you how important this is.

The Internal Revenue Service to resolve your case will need a current financial statement.

IRS will require a form 433-a individually, 433-B business. You can find these forms on our website.

You will need to fully complete these forms and verify all the financial information on these forms.

The Internal Revenue Service will make a determination based on your financial ability and there financial analysis of your case.

As a general rule the IRS will either put your case into a economic tax hardship, ask you to make monthly payments, or let you know you’re a tax settlement candidate.

Please be aware of the following, you can be personally be held liable for this tax.

If you have not paid back payroll taxes Internal Revenue Service may impose a penalty against the individual, persons, or corporate officers who failed to make back payroll taxes.

What does this all mean, the IRS will go after you personally to collect the tax. They will collect it from the business and you as well until the entire tax is paid.

You will find this in code section 6672
U.S. Code › Title 26 › Subtitle F › Chapter 68 › Subchapter B › Part I › § 6672
26 U.S. Code § 6672 – Failure to collect and pay over tax, or attempt to evade or defeat tax

(a) General rule
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 sub chapter A of chapter 68 for any offense to which this section is applicable.
(b) Preliminary notice requirement

(1) 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.

(2) 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.

(3) 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—

(A) the date 90 days after the date on which such notice was mailed or delivered in person, or

(B) 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.

(4) Exception for jeopardy
This subsection shall not apply if the Secretary finds that the collection of the penalty is in jeopardy.
(c) Extension of period of collection where bond is filed

(1) In general
If, within 30 days after the day on which notice and demand of any penalty under subsection (a) is made against any person, such person—
(A) pays an amount which is not less than the minimum amount required to commence a proceeding in court with respect to his liability for such penalty,
(B) files a claim for refund of the amount so paid, and
(C) furnishes a bond which meets the requirements of paragraph (3),
no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until a final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding the provisions of section 7421 (a), the beginning of such proceeding or levy during the time such prohibition is in force may be enjoined by a proceeding in the proper court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of such penalty in a proceeding begun as provided in paragraph (2).

(2) Suit must be brought to determine liability for penalty
If, within 30 days after the day on which his claim for refund with respect to any penalty under subsection (a) is denied, the person described in paragraph (1) fails to begin a proceeding in the appropriate United States district court (or in the Court of Claims)  [1] for the determination of his liability for such penalty, paragraph (1) shall cease to apply with respect to such penalty, effective on the day following the close of the 30-day period referred to in this paragraph.

(3) Bond
The bond referred to in paragraph (1) shall be in such form and with such sureties as the Secretary may by regulations prescribe and shall be in an amount equal to 11/2 times the amount of excess of the penalty assessed over the payment described in paragraph (1).

(4) Suspension of running of period of limitations on collection
The running of the period of limitations provided in section 6502 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Secretary is prohibited from collecting by levy or a proceeding in court.

(5) Jeopardy collection
If the Secretary makes a finding that the collection of the penalty is in jeopardy, nothing in this subsection shall prevent the immediate collection of such penalty.
(d) Right of contribution where more than 1 person liable for penalty
If more than 1 person is liable for the penalty under subsection (a) with respect to any tax, each person who paid such penalty shall be entitled to recover from other persons who are liable for such penalty an amount equal to the excess of the amount paid by such person over such person’s proportionate share of the penalty. Any claim for such a recovery may be made only in a proceeding which is separate from, and is not joined or consolidated with—
(1) an action for collection of such penalty brought by the United States, or
(2) a proceeding in which the United States files a counterclaim or third-party complaint for the collection of such penalty.
(e) Exception for voluntary board members of tax-exempt organizations
No penalty shall be imposed by subsection (a) on any unpaid, volunteer member of any board of trustees or directors of an organization exempt from tax under subtitle A if such member—
(1) is solely serving in an honorary capacity,
(2) does not participate in the day-to-day or financial operations of the organization, and
(3) does not have actual knowledge of the failure on which such penalty is imposed.
The preceding sentence shall not apply if it results in no person being liable for the penalty imposed by subsection (a).

Call us today for free initial tax consultation and speak directly to whatever tax attorneys, CPAs, were former IRS agents.