Are you a business owner who has been unable to pay your payroll taxes? Has the IRS sent you notices regarding non-receipt of your 941 payroll returns? Or maybe you have had to file some payroll taxes late because you did not have the money at the time they were due?

It is a very common practice for businesses that are having financial problems to file their payroll returns late and/or to hold off paying payroll taxes. When you fail to submit payroll taxes, what you are actually doing is using your employee’s money to pay off your other debts. This is not a good idea when your business is having problems. You are just creating more problems for you and your business and also adding IRS problems to your list of problems.

Payroll Taxes

When you fail to submit your payroll taxes on time the IRS will start adding penalties and interest to your tax bill. If your business is already having cash flow problems, this will just increase your problems.

Payroll Returns

Failing to file payroll returns on time will increase the penalties that the IRS can attach to them. These penalties can range from 5% per month up to a maximum of 25%. Your tax problems are multiplying because the interest is compounding and the penalties are adding up.

If you have already received notice from the IRS regarding your payroll tax problem, contact us now. Do not ignore this problem because it will just get worse. The IRS uses enforced collection for business owners with payroll tax problems. This means the IRS can put a levy on the business’ accounts receivable, automobiles, equipment, and bank account(s). The IRS could even put you out of business.

What happens now?

If the IRS has determined that you are responsible for the non-payment or late filing of payroll taxes, you will be held liable for these payroll taxes plus any penalties and interest that is accrued. This means you will be paying a Trust Fund Recovery Penalty.

Options

You need to know what your rights are. You need to know if the amount assessed is the correct amount. You need to know if you can qualify for an Offer in Compromise or an installment agreement with the IRS. You need to know if your assets are about to be seized. You need someone working for you.