Affordable Former IRS Agents & Managers know the system to get IRS off Your Back for Payroll Tax Debt. Instant Tax Relief. Since 1982.
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Here the truth from Former IRS Agents who have worked thousands of cases. We can keep the IRS out of your life.
You will never have to speak to the IRS. We are the affordable professional firm.
Upon your initial consultation will review your case and revealed to you all your different tax options for your business or individual tax problem and you can let are over 200 years of experience guide you through any situation you are currently experiencing.
Being a former IRS agent and teaching instructor you should understand that the Internal Revenue Service is tougher on payroll taxes than any other taxes.
The reason for this is very simple, this tax is money held in trust in not an actual tax.
It is one of few taxes that the Internal Revenue Service not only go after the company it can in addition can go after the responsible persons or individuals.
After the IRS creates individual tax assessment for those responsible it often time results in the filing of federal tax liens, bank and wage levy garnishments.
This is a tax that you should not fool around with because it is number one on the IRS to hit list.
The Internal Revenue Service will individually engage those responsible under section 6672 of the Internal Revenue Code
We should be able to make sure we can reach a reasonable settlement on your payroll tax liability and you can continue to operate your business without fear and worry from the Internal Revenue Service.
With over 60 years of direct working experience at the Internal Revenue Service we know every possible tax solution that can get you immediate and permanent tax relief for a payroll tax settlement.
IRS does not want to seize your business for back taxes due on payroll taxes, however 941 payroll taxes are a big concern for the IRS.
The Process of Dealing With Payroll Tax Debt Relief
The Internal Revenue Service will want to fully review your company or corporation before you can obtain in IRS payroll tax settlement.
You will need to provide IRS with the current financial statement along with proof that all payroll tax deposits and 941 tax forms have been filed.
One of the most important things to know about getting a payroll tax debt settlement, payment or moving on in the process is to understand that your current financial statement both business and individual will be the determining factor IRS will use to handle how your case closes.
When Internal Revenue Service reviews a business they also review individuals as well.IRS conducts a full compliance check.
Therefore an individual financial statements are required. We know this process inside and out we have worked hundreds and hundreds of cases, we can make this an easy and seamless process for you.
IRS will expect a 433B for the business & 433A for the individual.
IRS will expect complete documentation to support all the figures on the financial statements.The financial statement is one of the key documents IRS uses before a taxpayer will get a payroll debt settlement for tax relief.
After IRS reviews your personal and business current financial statement, Internal Revenue Service may determine that you are a:
1.hardship candidate, would simply means IRS will suspend any activity on current collections for a couple of years. Interest and penalty will run but IRS will review your case somewhere further down the road.
2.monthly payment agreement candidate,
3. or, an offer in compromise candidate and IRS payroll settlement.
Important to Know : IRS will next turn to the person or persons responsible for paying the back trust fund taxes. since this was not a tax but monies to be held in trust the IRS code under 6672 states that responsible persons can be held liable for the unpaid trust fund taxes on payroll or 941 taxes.
Who can be Responsible for the TFRP, the ones mentioned are the most general but not limited to.
One of the unusual features about payroll tax debt is the fact that IRS can collect the trust fund tax debt from the individuals who are responsible for paying the back payroll taxes. This is true with both payroll and excise taxes.
The Trust Fund Penalty may be assessed against any person who:
a.Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
b. Willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes.
This person may be, but not limited to:
An officer or an employee of a corporation,
A member or employee of a partnership,
A corporate director or shareholder,
A member of a board of trustees of a nonprofit organization,
Another person with authority and control over funds to direct their disbursement,
Another corporation or third-party payer,
Payroll Service Providers (PSP) or responsible parties within a PSP
Professional Employer Organizations (PEO) or responsible parties within a PEO, or
Responsible parties within the common law employer (client of PSP/PEO).
For wilfulness to exist, the responsible person (s):
Must have been, or should have been, aware of the outstanding taxes and either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness.You will be asked to complete an interview in order to determine the full scope of your duties and responsibilities.
Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business.
An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.
How does IRS Figure the Trust Fund Amount, a simple formula
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
The unpaid income taxes withheld, plus
The employee’s portion of the withheld FICA taxes.For collected taxes, the penalty is based on the unpaid amount of collected excise taxes.
Assessing the TFRP. If the IRS determines that you are a responsible person, we will provide you a letter stating that we plan to assess the TFRP against you.
You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.
The letter will explain your appeal rights.
Refer to Publication 5, Your Appeal Rights and How to Prepare a Protest if You Don’t Agree (PDF), for a clear outline of the appeals process.If you do not respond to our letter, we will assess the penalty against you and send you a Notice and Demand for Payment.
Once IRS asserts the penalty, the IRS can take collection action against your personal assets. For instance, we can file a federal tax lien or take levy or seizure action. Seizure actions usually include bank levies and wage garnishment levies.
More Technical Information
TFRP Assessment Process
1. The Collection function has sole responsibility for recommending assertion of the TFRP. Examination function personnel may refer potential TFRP cases to Collection for investigation.
2. Revenue Officers (ROs) are responsible for determining collection potential as well as investigating whom they believe was responsible and willful for non-payment. Appeals does not consider collectibility.
3. ROs use the Automated Trust Fund Recovery (ATFR) program to calculate the amount of the penalty to be proposed, as well as to document their investigation and request for assertion, which requires managerial approval.
4. Before a TFRP is assessed, taxpayers must be mailed or hand delivered a 60-Day Notice of Proposed Assessment, Letter 1153. Letter 1153 advises taxpayers of the proposed penalty and of their appeal rights. Issuance of the Letter 1153 prior to the ASED is required on all TFRP assessments.
A. If the taxpayer agrees with the proposed penalty, he/she will return a signed Form 2751, Proposed Assessment of the Trust Fund Recovery Penalty.
B. If the taxpayer disagrees, he/she may discuss the proposed penalty with the revenue officer group manager, request Fast Track Mediation, or file a timely written protest. Note: See IRC 7502, IRC 7503, and IRC 7508A for general information on determining timely receipt.
6. Fast Track Mediation takes place before a protest is submitted, but it does not extend the time allowed to request a pre-assessment (TBOR2) appeal.
7. Except in the case of a Jeopardy assessment, the taxpayer has 60 days in which to file a timely pre-assessment protest (75 if the letter was addressed outside of the United States).
A TBOR2 protest is considered timely if it is mailed on or before the 60th day (75th if outside of the United States), i.e., timely mailed is timely filed.
The 60-day period is measured from the mailing date of the Letter 1153 or from the delivery date if Letter 1153 is delivered in person.
8. A timely mailed protest is still timely for purposes of IRC 6672(b)(3)(B) even if the protest is inadequate.
9. Most TFRP cases that are considered by Appeals are pre-assessment (TBOR2) protests; however, Appeals may receive Fast Track Mediation, Jeopardy, post assessment TFRP claims, claim reconsideration’s and post-Appeals mediation cases as well.
Call us today for a free initial tax consultation. You will speak to former IRS agents, managers and teaching instructors.