Settle Payroll Tax
Settle Payroll Tax
Payroll taxes top the list in terms of collection priority. Payroll taxes, also called 941 taxes, are amounts deducted from the net wages and sent to the federal government. The employers have to send the payroll tax to the IRS. Not sending these taxes on time is considered as stealing by the IRS.
It is unfair on the part of the employer to not send the deducted amount from employees’ wages to the government. If that amount is not paid, it is considered as stealing and the IRS has the power to take the appropriate action.
Non payment of payroll tax is taken very seriously by the IRS. In many cases, on-time payment of these taxes is not given enough importance by the employers. This often creates serious problems for a business. The business may be shut down by the IRS and its assets seized to recover the amount owed by the employer. Moreover, any company official may be personally implicated under the Civil Trust Fund Penalty and may have to pay the whole amount himself.
Revenue Officer Assignment
The IRS Automated Collection System handles the liabilities below $10,000. A revenue officer is assigned the duty to collect any liability above $10,000. The IRS is very strict in case of payroll taxes. The revenue officer presents various options like levies including seizure of property. Options such as OIC are very difficult to obtain in such cases.
It is difficult to get an OIC as the revenue officer can agree only if there is no other way. He has the power to seize assets to collect the owed amount. The Civil Trust Fund Penalty can also be applied on you personally. There is no procedure to split the amount among different people in the company. Even if the penalty amount is quite large, any person can be stuck with all the money. For example, if the penalty is $50,000, any company officer can be stuck with it.
After assessing the Civil Trust Fund Penalty, a levy can be applied on the person. The consequences of not paying the payroll tax are bitter than other tax problems. The whole business can be shut and sold down by the IRS to recover the owed amount. A tax professional can study the various options available for the business in such cases.
Tax Solutions Network can assist you settle Payroll Tax issues and other IRS actions that can place you into bitter complications, call today and consult with a IRS Tax Attorney.
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