Payroll Tax Problems

The most serious of tax problems is the failure to collect, account for, and pay to the government any payroll taxes that were, or should have been, withheld from employees. These are referred to as “trust funds” and are vigorously collected using the most aggressive tools available to the government. Employers who pay their employees the amount of the employees’ net payroll and fail to remit the taxes related thereto are the classic case of payroll tax problems.

Why It’s So Serious

• Huge Penalties: Payroll tax penalties are some of the harshest the IRS has.

• Personal Liability: The IRS can hold business owners, officers, and even certain employees personally responsible through the Trust Fund Recovery Penalty (TFRP).

• Aggressive Collection: Because payroll taxes involve employees’ money, the IRS pursues them harder than income taxes. Liens, levies, and even seizures are possible.

• Business Risk: Falling behind can threaten your company’s survival if not addressed quickly.

How We Help

1. Stop IRS Collection Pressure

   As your representative, we step in and communicate with the IRS so you don’t face them alone.

2. Get You Compliant

   We make sure your current payroll deposits are being handled correctly, so you don’t keep falling behind.

3. Negotiate Solutions

   Depending on your situation, we can:

   • Set up payment plans that fit your business cash flow.

   • Request penalty relief if reasonable cause exists.

   • Explore settlements (like Offer in Compromise) if the debt is unmanageable.

4. Protect Your Business & Personal Assets

   We work to prevent or remove liens, levies, or the Trust Fund Recovery Penalty.

Why Acting Quickly Matters

Payroll tax issues don’t go away on their own — and the longer they sit, the fewer options remain. But the good news is, addressing the problem early can save your business and protect your personal finances.