Resolving a Payroll Tax Debt

A business owner may be waiting and hiring for a contractor or a payroll service to pay an invoice or for the bank to approve a short-term loan. If one of these improvements doesn’t materialize, the business can unintentionally be left unable to pay the back taxes and can suddenly face a very sizable and unexpected tax debt. learn more here!

In light of the current economic slowdown and the tightening of credit, it is very common with all the employers to find themselves the burdened with those unpaid taxes. Business owners basically matches their employment withheld taxes from all of their employees’ salaries and pay checks as well as to remit those taxes in the IRS office along with all the standard tax withholdings. When times are tough, it is not uncommon for an employer to delay in paying its payroll withholdings in the hope of being able to send them later when circumstances have improved.

Since the IRS defines a responsible person as any person or group of people who have the power to direct, collect, account for or pay trust fund taxes, that person may fit any one of the following descriptions:

  • A corporate director or shareholder
  • An employee or officer of the business or corporation
  • A partnership member or employee
  • A board member of a non-profit organization
  • Any other person with control or authority over the payment of the taxes or visit us on


No matter what the cause is, delinquent payroll will comes back and the payroll taxes which are unpaid can possibly cause a problems for the host. Most of the portion payroll company’s taxes are the amounts withheld coming from the employees’ wages. In order to pay on their share from the taxes of federal withholdings, and the FICA or shall we say social security. In other words, a portion of the total amount owed is actually the employee’s money that the employer is holding in trust to remit to the IRS or State Tax Agency on the employee’s behalf. If a company fails to file a payroll return or pay its payroll taxes, the employee’s IRS and State accounts will not be credited at tax filing time.

officeIf you are a business with a tax debt, we can help you evaluate through hiring staff from payroll services the available tax settlement options and resolve your tax debt problem. Because we know the collection laws and have experience negotiating with the IRS, we are in a better position than an individual taxpayer to stop enforced collection activity and to arrive at a reasonable tax settlement with the IRS. For more information about our tax debt resolution services.

Due to the combined effect of the factors discussed in the previous paragraph, a tax debt can potentially result in the downfall of an otherwise successful business. In light of this risk, all firm will always give advises about financial troubled business on owners in order to make each of the effort in complying all the tax being filed within the deadlines as well as on paying any related taxes in a timely fashion. If a payroll tax debt already exists, we encourage prompt action as the best way to get control of the situation and obtain tax relief.


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