The IRS is mercilessly going after small business owners for payments of payroll taxes–even when the business may be struggling to keep its light on.
In these tough economic times, the IRS is not so much concerned with how a business may be staying afloat, but how the business will pay all of its payroll taxes on time–even if it means levying their customers/clients. If you are in a situation where you have not been compliant with payroll taxes for a prolonged time, you will be required to provide to the IRS any information they request, including a list of clients and customers (phone numbers and addresses). At this point, the IRS will intercept payments from your customers to pay your delinquent payroll taxes.
On top of losing incoming revenues from your customers, you risk losing valuable clients who may not want to associate with your company after they have been contacted by the IRS. With the IRS intercepting your steady source of income, you will be facing challenges to keep your doors open and pay for your basic business expenses. In the end, the IRS doesn’t worry about the future of your business–whether it survives or dies–as long as they get their payroll tax payments and any incurred payroll tax penalties in full.
IRS penalties from delinquent payroll taxes can add up to about 33% PLUS interest in just 16 days after you have filed the 941 (payroll tax return) past the due date and didn’t pay. You can imagine what those delinquent payroll tax penalties add up to if you ignore this for a prolonged period of time. This can seriously paralyze your cash flow and you risk losing your business, having your assets seized and being held personally liable!
The IRS has unmatched authority to padlock your doors, seize your equipment/machinery, and put you out of business without obtaining a court order. Furthermore, it’s important for business owners to know that the IRS values payroll tax collection more than collecting income taxes, so it’s more challenging to negotiate tax settlements like long-term installment agreements for unpaid payroll taxes.
• Offer in Compromise settlements for delinquent payroll tax penalties are often rejected because the IRS may assume that the business is worth more than delinquent payroll tax debt owed, and they use that as reason to reject the offer.
• To prevail in these Offers for delinquent payroll tax debt, the taxpayer needs representation by an expert who can analyze and effectively articulate the real value of the business, which includes taking into consideration seasonality of the business, as well as macro factors in the economy.
• For larger delinquent payroll tax penalty liabilities, the taxpayer will be required to submit a full set of financials for the business as well as for themselves, each proposal for an installment agreement is negotiated point by point.
It only takes months for your payroll tax penalties to increase dramatically if you are unable to pay. If you owe delinquent payroll tax penalties, contact a tax attorney or tax resolution specialist now to start your action plan. Generally, if you don’t take immediate action to deal with a delinquent payroll tax penalties, you will find yourself out of business.
Don’t risk losing the business you spent years to build. Get professional tax help now to resolve your payroll tax problems. Whether you owe $700 or $7 million in delinquent payroll tax penalties, you can find a way out, sometimes for a small fraction of what you owe, sometimes without paying a dime. The key is contacting a tax resolution professional as soon as you can. A consultation with a good tax attorney or tax resolution specialist can turn your delinquent payroll tax nightmare into a distant memory so you can go back to the business of your small business, creating the American dream.
Tax Resolution Services is a team of tax attorneys, CPAs, and certified tax resolution specialists. We deal with payroll tax problems every day. Call us at 1-866-IRS-PROBLEMS or 1-866-477-7762. Tax Resolution Services will help you find tax relief!
More Tax Help, IRS News and Tax Relief Tips:
- Delinquent Payroll Taxes: Biggest Mistakes Small Businesses with Payroll Tax Problems Make
- With Expert Tax Help from TRS, Business Owner Owing $100K in Delinquent Payroll Taxes is Debt Free
- Tax Relief FAQ: What Is Worker Misclassification And How Is It Determined by IRS Business Audits?
- Five Tips to Resolving Payroll Tax Problems
- Income Tax Help: IRS Won’t Let You Off the Hook Just Because You Claim Sovereignty
Tags: Back Taxes, delinquent payroll taxes, IRS help, payroll tax debt, payroll tax penalties, Payroll Tax Problems, small business payroll taxes, tax attorney, tax help, tax help for payroll taxes, tax relief, unpaid payroll taxes