Can't Pay Payroll Taxes

Beware the Collection Power of the IRS!

When you owe taxes, the IRS will flex its debt collection muscles.  Now more than ever, the IRS is aggressively pursuing delinquent taxpayers.  Beginning with demand notices, the IRS applies more and more collection pressure, and is able to seize your home or business.  

Between 2000 and 2009, IRS seizure actions grew by more than fifteen times from 219,000 to 3.4 million!  In the past, public opinion condemned the IRS as heartless bureaucrats.  But now, as the national deficit has mushroomed, Congress has called on the IRS to collect cash from delinquent taxpayers whose debt exceeds $345 billion.

An experienced tax attorney can help solve your problems and protect your assets.  To learn how the IRS pursues delinquent taxpayers for payroll taxes, continue reading.  
Learn how to protect yourself.  

STS tax attorneys resolve unpaid tax situations, protecting our clients from aggressive collection action.  To speak with an STS tax attorney, call 1-800-TAX(829)-6183 or fill out our Contact Form.

Payroll and Employment Tax Liabilities
The IRS takes a harsh stance with operating businesses that have failed to stay current with payroll and employment taxes.  The IRS unsheathes the same arsenal of weapons it plies against taxpayers who owe income taxes – liens and levies – but with far less understanding and patience.

Businesses withhold income taxes from employee’s wages with the obligation to pay them timely to the IRS.  The government calls these withholdings “Trust Fund” taxes.  Most of the US operating budget is collected through Trust Fund taxes.

Because so much is at stake for the government, the IRS moves with speed and force against delinquent businesses.  When compared to income tax liabilities, the IRS takes a very tough stance and makes it hard to set up extended payment agreements or negotiate settlements for an ongoing business.  Unlike a personal residence, the IRS does not have to obtain a judge’s permission before seizing your business.

Once a business owes payroll taxes for multiple periods, the IRS is much more likely to shut it down and seize the assets.  Focused on payment, the IRS identifies the responsible parties who failed to turn over the taxes, usually the owners and managers, and holds them personally liable.  Personal liability for income tax withholdings is known as a “Trust Fund Penalty.”  For more information about Trust Fund Penalties, keep reading.

An experienced tax attorney can help you through the nightmare of payroll and employment tax liabilities.  STS tax attorneys have twenty-five years of tax law and business experience, which we call upon to find the right strategy to solve our clients’ problems.

Trust Fund Penalties

The Internal Revenue Code authorizes the IRS to assess a Trust Fund Recovery Penalty against a person who was required to collect and turn over payroll taxes and who willfully failed to do so.  That person becomes personally liable for 100% of what was not collected and turned over to the government.  Revenue Officers are directed to conduct extensive interviews to determine who the responsible person was, but often times they take a shotgun approach and assess bookkeepers, accountants, owners, and managers. 

Trust Fund Penalties often are large.  They cannot be discharged in bankruptcy.  Because the liability is personal in nature, your home and other property become a target for the IRS.  Your credit can be ruined.  A person burdened with Trust Fund Penalties has to deal with enormous personal stress.

Legitimate defenses exist to protect you from Trust Fund Penalties.  An experienced tax attorney can help prevent the imposition of Trust Fund Penalties or resolve them if properly assessed.  STS Tax Law defends individuals using the power of the law to ensure you are not unfairly accused.

Get help before it’s too late.  If you are a potential target or the IRS wants to interview you, call STS Tax Law today.

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