Back Payroll Tax Returns

Posted on 03. May, 2012 by in Back Tax Returns, Back Taxes, Help Filing Back Taxes

Employers who fail to pay payroll taxes face some of the stiffest penalties and actions that the IRS can impose.   Payroll taxes are considered a trust fund tax meaning that employers are required to pay the IRS the funds that are withheld from their employee paychecks.  Businesses that withhold from employees are liable for payment of the trust fund tax.  The IRS determines trust fund liability by considering if the business owner is liable for collection or paying withheld income and employee taxes and whether the business owner willfully failed to collect and pay the taxes.  Back payroll taxes are a federal crime and considered as theft.  The IRS will quickly take action against businesses that fail to pay payroll taxes.

The most important thing for business owners that have back payroll tax debt is to remedy the situation as quickly as possible.  The only way to keep the business in operation is for the employer to pay current taxes on time while resolving the delinquent payroll tax.   The IRS will shut down any business that it believes will continue to fall behind in payroll tax payment.

With the number of businesses holding back payroll tax debt on the rise, the IRS is increasing enforcement action which can include levies, liens, and business closure.  The IRS will decide appropriate action by considering whether the owner is paying current taxes on time, the owner’s ability to pay off the balance on the unpaid taxes, and the ease with which the IRS could liquidate the business, and gain valuable income from that liquidation.

Business owners have similar rights to that of individual taxpayers.  There are ways to remedy the situation and a tax professional can help employers negotiate with the IRS in the same way they would assist an individual.  A tax attorney and their team of tax professionals can help business owners establish their financial profile, educate them on the options available such as Offer in Compromise or Installment Agreements, and work act on the owner’s behalf working with the IRS to resolve the back payroll taxes.

We will work on your behalf to settle your tax problem in your favor.  Your tax problem will certainly not go away on it’s own.  Call us now at 1-888-570-1033 for a FREE consultation.

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