Wednesday 20 Feb 2019
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Streamline Tax Resolution, LLC

Navigating Your IRS Issue Just Got Easier

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940/941 Payroll Tax Disputes


When you fail to pay Payroll Taxes to the IRS, you suddenly have to deal with the largest and most powerful collection agency in the world. Unpaid payroll taxes will not only generate huge IRS penalties and debt, but may also be considered a federal crime. In their pursuit of collection of Payroll Tax debt, the IRS will make certain you feel their wrath. Bottom line: Unpaid payroll taxes can cause you to lose your business and your freedom.




Unpaid Payroll Taxes have become one of the primary causes of business failures and bankruptcies across the United States.The money collected from employees to pay their share of federal withheld tax, FICA and Medicare (Social Security) does not belong to the business and must be accounted for and paid to the government. Generally, one must make a federal tax deposit (by tax filing service, phone, or in person at a bank) 3 days after the pay date of the pay roll checks. There are small and mid-size businesses who have, for economic purposes, chosen to use the money they collect from payroll taxes to pay their operating expenses. The penalty for this equals the amount of the taxes that are owed. It is called the "Trust Fund Recovery", 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.



The IRS will pursue collection of past due payroll taxes very aggressively

First, the IRS will determine the identity of any person responsible for the taxes required to be withheld and paid on behalf of employees. This step of the process may involve personal interviews in order to determine the specific duties and responsibilities of persons involved with the tax withholding and payment process for a particular business or organization. There may be more than one responsible person. If the IRS determines the business cannot pay it’s past due taxes, they shift the focus squarely on the responsible party, which could be you. The penalties assessed on delinquent payroll tax deposits or filings can increase dramatically the total amount owed in just a matter of months. Generally, if you don't take immediate action to deal with business tax audits, payroll tax problems, and business tax problems, you will find yourself out of business.


Once you have been assessed with a liability, the IRS will assign your case to a local Revenue Officer who specializes in collecting Payroll Taxes. In addition, these IRS Officers examine the current and past financial history of your business. Once the local Revenue Officers are given a case, they have complete power and authority. IRS Revenue Officers possess the power to padlock your office doors, and put you out of business, without obtaining a court order. Even if you are a florist, and you have living flowers and plants, it does not matter. Your front door will be locked, and your business will be one step closer to bankruptcy. IRS Revenue Officers also have the power to seize your machinery and equipment as assets to be liquidated in order to pay off part of the tax debt, and cover the trust fund penalty.


The IRS Revenue Officer is not your friend, and they have already heard every hard-luck story in the book. Their main job is to obtain the back Payroll Taxes you and your company owe to the IRS. If their methodology threatens the future of your business, it is not important to him. In fact, the IRS Revenue Officer will often contact your customers in regards to possible debts owed your company. If your customers owe you money, the IRS will intercept these funds through their absolute levying authority. In addition, what is the chance that a customer or client will do business with you in the future after the IRS has contacted them about your unpaid Payroll Taxes? Will they ever be able to trust you and your business again?


True Fact: No matter what the age of a Payroll Tax liability, unpaid Payroll Taxes are not dischargeable in a bankruptcy. Even if your business goes bankrupt, your IRS payroll debt remains in place…and for most of that debt you are now personally liable.


We can help you TFRP

Luckily, there's a solution for this problem. Having helped several businesses across the nation, we can offer the best advice for a business that wishes to avoid the negative consequences of the TFRP, and permanently resolve your payroll tax debt problems and protect the future of your company. We understand that business owners need working capital and cash flow to keep their businesses running. Our goal is to keep your doors open and the profit of your business flowing.

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! It's like going to court without a lawyer and representing yourself. This is only a good idea if you know the Law. Do you? We do!!


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