If you owe the IRS, you cannot qualify for an outstanding IRS Tax Resolution program unless you are tax compliant.
You will have additional penalties and interest added to your tax balances
You will not be able to resolve your tax debts and stop collection activity
You will automatically default ANY tax resolution program in the future without being tax compliant
Unfiled & Unpaid Payroll Taxes
Employers are required to file the following payroll tax returns:
– Form 941 – Federal Employer’s Quarterly Federal Tax Return
– Form 940 – Federal Employer’s Annual Federal Unemployment (FUTA) Tax Return
– State/Local Withholding Returns
Payroll taxes include taxes paid by the Employer (FICA and Medicare) and taxes withheld from Employees by the Employer (Federal/State/Local Withholding, FICA, and Medicare). Employers are responsible for remitting these taxes and withholdings to the tax authorities periodically. The Employee withholdings are considered “Trust Funds” and it is very important for the Employers to remit these withholdings on their behalf. Failure to do so exposes the Employer to serious tax issues. When payroll taxes are unpaid, it is a sign that the company is going through financial difficulties. The Employer may be using funds meant to pay payroll taxes for other bills thinking things will get better soon and they will get caught up later…but later usually does not happen. Employers then begin getting behind on both their payroll taxes and regular bills.
The IRS places a priority on these cases, and they are usually assigned to IRS Revenue Officers to enforce and collect. The Revenue Officers usually appear at the company in person, unannounced, to begin the collection process. They have the authority to shut down the business if the issues continue and cannot be resolved. The Revenue Officers will conduct a Trust Fund interview where they will determine if officers of the company should be personally responsible for the payment of the Trust Fund debt. A payment plan must be set up which includes a plan for staying current with your payroll taxes. There is a lot of reporting back to the Revenue Officer with strict deadlines.
GPS Tax Services has experience working with Revenue Officers and can help you thru this process, so you do not have to face this alone.
Request Free Consultation
At GPS Tax Services, we offer a FREE, No Obligation, Confidential consultation to discuss your unique tax situation. During this call we will discuss your circumstances and recommend the best course of action to resolve your tax matter.