Payroll Tax Relief

 

Payroll Tax Relief in Los Angeles

Owing 941 payroll taxes is different from owing personal income taxes. It’s because the money has already been deducted from your employee’s payroll checks, so it’s not your money to begin with. Fortunately, we can help you get payroll tax relief. 

You might feel like you’re temporarily borrowing the money from the IRS until your business gets back on track, but the IRS doesn’t see it that way at all. The IRS needs that money to make Social Security payments among other things and takes late payroll tax payments more seriously than just about any other tax problem.

Penalties can add up fast. There’s a failure to file penalty, a Trust Fund Recovery Penalty, interest on the taxes that are late, and the taxes themselves. It can be easy to get into a hole really fast with back payroll taxes due. Plus, it’s taxing on your peace of mind to have this kind of burden weighing you down.

The Internal Revenue Service, state tax agencies, and local entities will send a letter if one of the following happens:

• You miss a payment deadline for payroll taxes due.
• You miss a deadline for filing payroll tax reports.
• An amount paid is short or over what the IRS or another tax agency calculates as due.
• The agency notices a discrepancy on your payroll tax returns and needs an explanation.
• You have been selected for an audit.
• You fail to respond to previous correspondence.

What Will Happen To Me?

If you don’t respond to the initial IRS letters, the IRS can close your business, come after you personally, apply liens, levy your bank accounts, confiscate your receivables and seize your income sources and property in an attempt to collect payment. Payroll tax delinquency is the IRS’s #1 enforcement priority. It could also quickly turn into a criminal matter.

Do You Have Trust Fund Recovery Penalty (TFRP) Incurred?

The Trust Fund Recovery Penalty is when the IRS transfers the business payroll tax obligation to individuals, penalizing them for the business’s failure to make the payroll tax deposits. The amount of Trust Fund Recovery penalty is equal to the unpaid balance of the trust fund taxes, which is based on the unpaid income taxes withheld and the employee’s portion of the withheld FICA taxes.

With a TFRP case, you have to take care of the issues on the 2 different levels –
the “business entity” & the “personal”.