Payroll Tax Non-Payment Is Considered By The IRS As Number One Priority For Collection Actions
Payroll Tax Non-Payment Is Considered By The IRS As Number One Priority For Collection Actions
Corporations, limited liability companies and occasionally limited partnerships need to understand the seriousness of unpaid federal payroll tax and how to deal correctly with this back tax problem. The simple solution is to pay them accurately and on time. But when a business doesn't stay current on their Payroll Tax or employment taxes, the IRS will not allow them to continue to operate and, in addition, they become subject to penalties. This is when a business really needs tax help.
The main reason for forming a corporation, Limited Liability Company or limited partnership is to shield the personal assets of the owners, stockholders and officers.But when it comes to Payroll Taxes, personal assets are not always shielded. Even if an owner operates his business as a sole proprietorship or general partnership and fails to pay his Payroll Tax, the business assets as well as the owner's personal assets are subject to the IRS Lien.The IRS can seize and sell all business and personal assets of the business and owner to collect the total tax, penalties and interest owed.
The Payroll/employment/941 Tax owed by one of these entities is comprised of Trust Fund Tax and Non-Trust Fund Tax. The Trust Fund Tax consists of the income tax and fica/mc withheld from the employees of the business. The Non-Trust Fund Tax is the employer's portion of the fica/mc.
The Trust Fund Recovery Penalty (TFRP) is probably the least understood tool in the IRS' arsenal of weapons to collect taxes from businesses and is also one of the most devastating to the individuals involved with the business.
If you are contacted by a Revenue Officer, either by telephone or personal contact, you should immediately tell the Revenue Officer (in a courteous and respectful way) that you do not wish to discuss your case with them and that you wish to seek representation on this matter. Do not let the following scenario happen to you. Any information you provide to the IRS, may be used against you.
The Revenue Officer interviewing you will be investigating who the IRS will consider to be the "responsible person" or persons individually liable for the TFRP. He will make his recommendation based on this interview. First of all, you should not personally participate in this interview with the IRS.Clients should be interviewed by a tax assistance firm, not by the IRS.In most cases, the answers you give the IRS to these questions will not be interpreted or written on the form in the same manner you gave them to the Agent. This does not work in your best interest. You need to be provides a complete defense to the TFRP.
A field visit to a business owing Payroll Tax by an IRS Revenue Officer is a harrowing experience.The Revenue Officer will not schedule an appointment at your office.They will not call ahead to let you know they are coming to your office.They will show up, unannounced, for a face-to-face meeting with you.They will first demand full payment for all the tax, penalties and interest you owe. If you cannot pay in full, they will demand that you pay them all that is in the business bank account and give you a date for payment of the balance.They will also require a complete financial statement on your company including your bank accounts, equipment, real estate and account receivables.All sources for them to Levy at their discretion.After finishing the financial statement on the company, the Revenue Officer will conduct a TFRP interview with you as well as any other individuals potentially responsible for the TFRP. In many cases, they will also want a personal financial statement from you. This initial meeting may last two to four hours.Is this an experience to which you wish to be exposed?
You need to get with a Tax Firm with years of experience dealing with the IRS Collection Division. Tax SolutionsTM is the only Tax Firm in America specializing in full service representation before the IRS Collection Division. At Tax Solutions, we are all "Enrolled Agents" licensed by the Treasury Department, now on the side of Taxpayers, to represent clients before the IRS in all 50 states. We will honestly tell you what we think your chances are for non-assertion of this penalty against you before you pay a fee.If in our opinion, you will be declared a responsible person, we will also assist you in planning for the eventual assessment against you.
As, President of Tax Solutions, I have been a well known expert in the field of tax resolution for the last 27 years. Tax Solutions was the first and is the oldest tax resolution firm in the US. Being a senior field collection officer assigned to the IRS Collection Division in a past life, my job was to meet with delinquent taxpayers on a face-to-face basis and collect tax for the IRS.
During my years with the IRS, I met with many CPAs and Attorneys who represented taxpayers who owed the IRS. In the vast majority of these cases, the taxpayer's representative had no idea how to effectively represent and protect their clients.Although the CPA or Attorney may have been excellent in their field, accounting, tax return preparation or income tax law, they had absolutely no idea how to protect their clients when dealing with the IRS Collection Division.
Tax Solutions has developed certain strategies and planning techniques that are unique. Early planning may save your business and your personal assets. You will not meet with an IRS Agent. However, early contact with us is necessary to answer your payroll tax questions and to prevent the total loss of your business and personal assets. How to Get Dates With Beautiful Women - 3 Must Know Secrets of Attracting Attractive Women Enjoy Cheap And Comfortable Stay In Budget Hotels In Delhi by:Rasia Sharma A Good Organic Diet Breast Cancer Investment 101: Choosing Your Financial Advisor Payday loans uk-Designed for salaried class people Insurance Concerns Of Divorcing Couples Learn the Payday Loan Online Basic Payday Loan Uk- A Financial Help For Uk People More Asian Men Dating In The Interracial Front Oily and Dry Skin Need a Moisturizing Facial Treatment Planning That Windy City Trip? Take Advantage Of These Instructions On How To Nab Nab Chicago Getawa Parenting Discipline - 2 Simple Ideas To Start Making Progress