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Payroll Tax Problems


Failing to file and pay your payroll taxes is a sure way to incur the wrath of the IRS. Unpaid payroll taxes will not only generate huge IRS penalties and debt, but may be considered a federal crime. Bottom line: Unpaid payroll taxes can cause you to lose your business. The IRS assigns a higher priority to collecting unpaid employment taxes than income taxes. Payroll taxes are considered a trust tax, which means that it's the employer's responsibility to collect federal withholding taxes and the employee portion of FICA and pass this on to the IRS. Because it's considered a trust tax, the IRS views non-payment of payroll taxes as 'theft' and the IRS notice process is accelerated.


When unpaid payroll taxes exist, there may be strategies and techniques available for minimizing the potential penalties that the IRS may impose.  We can help you in this extremely complicated area to attempt to develop the most advantageous strategy to you in addressing unpaid payroll taxes. 


To take advantage of these strategies and techniques to minimize the penalties associated with payroll taxes, it is important to address the situation as early as possible.  This is especially true when the taxpayer does not have sufficient funds to immediately satisfy the entire amount of the payroll tax liability.  This is where experienced professional advice can prove invaluable.


Streamlined Installment Agreements for Businesses


Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement.  These installment agreements generally do not require a financial statement or financial verification as part of the application process.  

To qualify, the tax debt owed be the small business must be $25,000 or less and must be paid within 24 months (or prior to the Collection Statute Expiration Date, if earlier).  The small business must be current with all other filing and payment requirements.  For small businesses owing between $10,000 and $25,000, the taxpayer must enroll in a Direct Debit installment agreement.


If you owe past due employee taxes and intend to go it alone, without expert representation, against the IRS, you are way out of your league. You risk losing your business, having your assets seized and being personally liable.

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