Settle Payroll Tax Liability / 941 Tax

OUR TEAM OF AFFORDABLE IRS AGENTS & MANAGERS CAN HELP YOU SETTLE YOUR CASE WITH THE IRS. OUR TEAM HAS OVER 50 YEARS OF EXPERIENCE WORKING AT THE IRS AS REVENUE AGENTS IN CHARGE OF PROCESSING OFFER-IN-COMPROMISE CLAIMS.  WE KNOW THE SYSTEM FROM THE INSIDE AND OUT — SINCE WE’VE WORKED THERE SINCE 1982.

Our team has combined over 50 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.

We know all the systems, settlement formulas and all the methods to employ to best get you the most affordable IRS tax debt relief — including having a trust fund debt problem.

As former IRS Revenue Agents, Revenue Offices, Appellate Officer, and tax attorneys who have worked thousands of cases. We are the most affordable professional firm.

Take it from a former IRS agent and teaching instructor: you should be aware that the Internal Revenue Service is tougher on payroll taxes than any other taxes.

The reason is simple: payroll taxes are funds held in trust – and are not an actual tax!

It is one of the very few taxes, however, that the Internal Revenue Service can go after not only the company, but they can also go after all the other responsible parties or persons.

After the IRS creates a tax assessment for all of the individuals responsible for paying this tax, IRS often files results in the filing of federal tax liens, bank and wage levy garnishments against those same responsible parties.

This is a tax that you should not mess with because payroll taxes are number one at the top of the IRS hit list. The Internal Revenue Service will individually engage all of those the “responsible parties” with Internal Revenue Code section 6672.

Let Former IRS agents and managers get you immediate tax relief via a payroll tax settlement.

Our effort is to ensure we can reach a reasonable settlement on your payroll tax liability so you can continue to operate your business without worrying about being afraid of the Internal Revenue Service.

Our team members have over 60 years of experience working direct for the Internal Revenue Service in our previous careers, we know every possible tax solution that we can use to get you immediate and permanent tax relief for settlement of your payroll tax settlement.

Even though unpaid 941 payroll taxes are a big concern for the IRS, they do not want to seize your business to satisfy for back taxes due on payroll taxes.

The Process of receiving a Payroll Tax Settlement

The Internal Revenue Service will want to perform a full review your company or corporation before our team can obtain an IRS payroll tax settlement. You will need to provide us with your current financial statement, along with proof that all your current tax year payroll tax deposits and 941 tax forms have been filed.

Often the IRS will additionally require you to provide a personal or individual financial statement for all “responsible persons.” For most companies, as IRS payroll tax solution may be settled in any one of several variations on three primary themes.

After reviewing your current financial statement, the Internal Revenue Service may determine that you are either a hardship candidate, monthly payment agreement candidate or an offer in compromise candidate for IRS payroll settlement.

Why have Joshua Webskowski, EA, USTCP contact the IRS for you:

  • You never have to talk with the Internal Revenue Service on these tax matters;
  • Joshua Webskowski, EA, USTCP has former IRS Agents on his team who know what the IRS is looking for;
  • Joshua Webskowski, EA, USTCP has former IRS Agents on his team who know the exact packaging required;
  • Joshua Webskowski, EA, USTCP has former IRS Agents on his team who know the next steps the IRS will take;
  • You know your case will be handled and resolved as fast as possible.

Other Factors To Consider

  • IRS can sell your complete inventory at public auction – they have that right;
  • IRS can seize all of your accounts receivables;
  • IRS can hold you personally responsible for full payment of this tax;
  • IRS has the right to lock the doors of your business at any time.

Steps you can take in order to work out an affordable payment plan with the IRS:

  • Immediate get current on all payroll tax deposits – and stay current — to show the IRS that you are acting in good faith;
  • Be prepared to give the IRS you current personal financial statement as well as a current business financial statement;
  • Make sure your personal tax liabilities are filed and paid;
  • Have all of the documentation upon which you are basing your assessment of your financial statements ready to present to the IRS.

If you do not pay Payroll Taxes for your business or corporation, the IRS can collect them from you individually
To encourage prompt payment of withheld income and employment taxes that have been withheld from employee’s wages — including Social Security and Medicare taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that established the TFRP (Trust Fund Recovery Penalty).

These payroll taxes are called “trust fund” taxes because an employer actually holds their employee’s money aside “in trust” that they will be paid when the business makes their next federal payroll tax deposit for all employees.

The TFRP may apply if these unpaid “trust fund” taxes are unavailable for immediate collection from a business or corporation.

The business does not have to have stopped operating for the TFRP to be assessed a business.

Who Can Be Responsible for the TFRP

The TFRP may be assessed against any person who:

  •     Is responsible for collecting or paying employment and income taxes withheld from wages, or for paying collected excise taxes, and
  •     Willfully fails to collect or pay these taxes.

A responsible person is any person or group of people who individually or collectively are charged with the duty to perform the collecting and the power to direct the collecting, counting, and paying of trust fund taxes. This person may be:

  •     An officer or an employee of a corporation,
  •     A partner, 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 willfulness to exist, the responsible person must have been, or should have been, aware of outstanding unpaid taxes and either intentionally acted with disregard to the law or was plainly indifferent to the requirements of law. No evil intent or bad motive is required for a person to be plainly indifferent.

Willfulness is when a business is unable to pay the employment taxes and a responsible person uses available funds to pay other creditors. In order to determine who the “responsible parties” are,  the IRS will conduct an interview to determine full scope of each responsible person’s job duties and responsibilities.

Whether an individual exercised independent judgment with respect to the financial affairs of the business is the basis upon which responsibility is determined.

An employee is not a responsible person if that employee’s function was solely to pay the bills as directed by a superior. In contrast, an employee who can determine which creditors would or would not be paid would be determined to be a responsible person.

Figuring the Trust Fund Amount

The unpaid balance of the trust fund tax is the amount of the penalty. The penalty is additionally computed based on:

  •     The unpaid income taxes withheld, in addition to
  •     The total of all employees’ portion of the FICA taxes withheld. In the case of collected taxes, the penalty is based on the unpaid amount of collected excise taxes.

Assessing the TFRP.

When the IRS determines who the responsible persons are, they will provide the responsible parties with a letter stating that they plan to assess the TFRP against them. The responsible parties will then have 60 days (75 days if the letter is addressed to someone residing outside of the United States) from the date printed at the top of this letter to appeal the IRS’s proposal.

The letter will explain the responsible person’s rights to appeal. They will be referred to read IRS Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (a PDF is available from the IRS), for a clear outline of the appeals process. If the responsible person does not respond to this IRS letter, the IRS will assess the TFRP penalty against that person and send them a Notice and Demand for Payment.

Once the penalty has been asserted, the IRS can take collection action against all responsible persons’ personal assets. For instance, the IRS can file a federal tax lien or take levy or seizure action.

What Should I Do If I Owe Payroll Taxes?

Corporations with delinquent Payroll Taxes.

The IRS will be very aggressive in the process of collecting taxes. Businesses who would like to continue operating that owe payroll taxes will realize just how aggressive the IRS can can be.

The IRS sees unpaid payroll tax as money that your company held in trust for the benefit of your employees that was rightfully meant to be paid on their behalf.  In all actuality, these amounts are actually not taxes. Essentially, the government has trusted your company to collect and remit these monies to the IRS. The IRS has specialize agents the diligently watch for repeat offenders –companies that run up their unpaid payroll taxes quarter after quarter, year after year.

Companies like this are a juicy target for the IRS to focus their attention. If the payroll taxes remain paid, the IRS could close the company and sell off the company’s assets to obtain the payment due. The IRS could also obtain the company’s accounts receivable list and and obtain the payment due by sending levies out to all fo those whom owe the company money.

The FTD (federal tax deposits) system alert is a special call alert system to let the IRS know who is behind on payroll taxes. 941 Payroll Taxes, a.k.a Trust Fund Cases, are one of the IRS’s top priorities.

A Federal Tax Lien can be filed by the IRS locally at the county courthouse against a company that owes payroll taxes. Additionally, the IRS can also file a Federal Tax Lien in the state capitol where the business is located, under the UCC (Uniform Commercial Code). Both of these will options in the IRS arsenal will seem like incursions that will have a negative effect on the business’s credit, ability to borrow, and how vendors deal with the company.

With an economic downturn, many companies could find themselves dipping into their employee payroll taxes. Doing so can make a cash flow problem into a huge financial mess — and it’s only a matter of time before the IRS comes knocking on the door.

If you find yourself in a situation like this, our professional tax team will be able to help your company avoid forced collection from the IRS — and help you negotiate an acceptable payment plan. Because of the high priority the government places on delinquent payroll taxes (a.k.a. Trust Fund Cases), these are situations that — to get you the best deal possible  — you should only use a tax resolution company that employs former IRS agents and officers.

This type of problem never goes away until the payroll tax, the Trust Fund Liability, is paid in full.

The IRS will conduct an in-depth investigation and find out exactly who is responsible for paying the Trust Fund Liability. They want to find out who the decision makers were and who was responsible and authorized for paying the bills. After they are done with their investigation, the IRS will send out a letter to each of those individuals they found responsible (the responsible parties).

These individuals will get the chance to appeal those findings, but once the determinations have been made, the assessments become final and IRS will personally go after the personal and business assets of the individuals who are deemed responsible for paying the unpaid “trust fund” payroll taxes.

If you are a responsible officer or party of a business or corporation that might owe back payroll taxes, the IRS will not only look to the company, but they will also look to you personally to pay the amount due.

This is known as the Trust Fund Recovery Penalty (TFRP), and it will not go away until the unpaid amount is paid in full. Regretfully, the Trust Fund Recovery Penalty (TFRP) amount is not discharged in bankruptcy.

The IRS will follow you until they are paid the TFRP in full, from whatever sources are available.